[Calpernia]

That is what I'm wondering about. Most of the 'retailers' are virtual companies like me. We aren't a store front. Work at of home and sell through the Net.

So how does this work across the board? If I sell an item, let's say on eBay, and the purchaser has a state law prohibiting the item to be shipped there, I'm bound by contract to sell. Am I responsible if that purchaser is not allowed to purchase? How am I to know what state that person is in until after the sale. Then my square trade agreement binds me in contract.

See, it gets stickier beyond the cig issue. I'm mostly wondering about this law itself vs. cigs shipping.

[newgeezer]

If I sell an item, let's say on eBay, and the purchaser has a state law prohibiting the item to be shipped there, I'm bound by contract to sell.

No, you're not. The contract is rendered void by the fact that your sale would violate the law. Your customer probably knew the law, and was attempting to get around it. But, regardless, it's your responsibility as the seller to know the laws in your marketplace.