The Legality of Selling Pins?

[KillarneyRose]

I know this subject has been beaten to death, but I've never gotten a clear answer on it. Can anybody help?

Imagine this scenario

Suzy Sororitygirl is an initiate of ABC sorority. After a year or so she decided greek life isn't for her and quits. Instead of giving the badge back to National like she is supposed to, she decides to put it up for bid on Ebay. Now, keep in mind that it says in her pledge manual and it is the official position of ABC sorority that the badge is the property of ABC Sorority and is loaned out to the member in good standing for use during her lifetime. The Badge fee is for all intents and purposes a rental fee.

Now, how can Suzy legally sell something that doesn't belong to her? Even if Suzy sold the badge to a pin collector and the pin collector turned around and put it on Ebay, wouldn't that be the same as fencing stolen merchandise?

I am just thinking it is the same scenario if a guy would steal a wristwatch from someone and sell it to a pawn shop. Then a watch collector would buy it from the pawn shop and sell it on Ebay. I am reasonably certain that is considered dealing in stolen goods. So why is it different if we're talking a badge instead of a wristwatch?

Your thoughts please?