I'm now law expert, but this "business model" stinks. The website gives very little information on what Butterfly is exactly doing. Even if they are "only" the middleman - they have to check if the stuff they're trading is legit. They claim to have a "Downloadable databases for all titles", so they seem to maintain a central product database. This means they should be well aware of what kind of software they are selling.
I guess the eBay seller merely supplied them with a master ISO image and 2 JPEG covers for the the jewel-case.
I did quite a lot of "real" CD/DVD productions in the past. With every order to a manufacturer, you have to send a signed paper to approve you're holding the copyright or licenses to the stuff in the ISO image you're supplying. There's no way you can "accidentally" order the production of "real" CD's/DVD's with pirated content.
EDIT: MiniMax, upon further investigation on the site, i'm pretty sure i understood that "Butterfly Media" is not only a logistic platform selling stuff supplied by other parties. They are stocking and dispatching the software. The eBay (or Amazon or whatever) sellers are acting as re-sellers for the "Butterfly Media" products catalogue. So, if i understand that correctly, "Butterfly Media" have full control of their product portfolio, and thus are fully liable for the products they're offering.
SKARDAVNELNATE, could you provide a little more information on your deal? Could you photograph/scan the CD and inserts, and post them here? I'm curious how that stuff looks...
Edit: some spelling