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Of course it's legal. You can do anything you want to a guitar and attempt to sell it. It wouldn't be right to sell it as new. It wouldn't be covered by the Fender warranty which is pretty worthless anyway.
How about giving us a link to such an eBay listing.
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Jack's Disclaimer: When I say something.... always ask yourself ..... "What the hell does he know?" _ 
Guys - learn to disable the flash on your digital cameras.
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