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@tom.
I don't think that's quite right. He's selling "reconditioned" bikes which I suspect is something a bit different. This may seem a little obtuse, but please bear with me:
I own a shop, I buy a bike from Trek. I sell it. It needs reflectors, etc.
I own a shop. I buy a bike from a guy that bought the bike from Trek. Does the additional stage mean that reflectors are no longer needed?
I think it's more likely that people forget that when you are selling goods second hand you still have responsibilities regarding them. The fact is that if I sell one bike every 4 years, trading standards (or whoever) aren't going to give a flying fuck. If I'm selling one a week, I think that will take a bit more of an interest.