Off the top of my head, much of this will apply. You would need to do analyse paypal's TOS. Think there are more. What it means is that if there is Federal or State legislation, certain things are not permissible. Brlow is a random list for you.
1. Any item or service that is harmful to minors, obscene, or otherwise objectionable.
2. Any item that infringes the rights of a third party, including items that violate copyrights, trademarks, publicity, or privacy rights of third parties.
3. Any item that is counterfeit or stolen, including, but not limited to, counterfeit currency, coins, stamps, and equipment used to produce them.
4. Any animal items that are subject to regulations or laws for the protection of live animals, including endangered species and domesticated animals, as well as any products made from or including any parts of an animal protected by law or regulation.
5. Any item that has been the subject of a product recall by the U.S. Consumer Product Safety Commission, other government agency, or product manufacturer including items containing hazardous substances without a warning label.
6. Individual contracts, services, and any item that is non-transferable.
7. Non-packaged food items and other food or beverage items sold in a manner inconsistent with federal, state/province, or legal regulations.
8. Any used goods not appropriate for resale for safety, health, or other reasons.
9. Any items that can be used to inflict bodily harm on others, such as firearms, bombs, ammunition, firearm parts, switchblade knives, fireworks, or any kind of weaponry.
10. Bulk email lists containing names, addresses, or other personal information.
11. Gaming items such as, slot machines, lottery tickets, raffle tickets, and sweepstakes entries.
12. Alcohol or tobacco products, prescription drugs, medical devices and non-prescription drugs that make treatment claims that require FDA approval.
13. Items or services related to identification such as, citizenship documents, birth certificates, police or other government insignia.
14. Human or animal parts, including blood, organs and bodily fluids.
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