As Jolly Mon says, there's nothing illegal about reselling your CD, it's keeping a copy of the CD after you sell it back. Your copy was just to enable you to use YOUR CD in a different manner. If you don't own the CD any more, you can't continue to use it (via the copy).
Here's a thread where a bunch of people agree that it's not legal (in the case of music): http://forums.macrumors.com/showthread.php?t=340518



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