In your case, it would be a problem because you need to defend your copyright in order to keep ownership of it. But in this case, the guy isn't making a differ

In your case, it would be a problem because you need to defend your copyright in order to keep ownership of it. But in this case, the guy isn't making a different product with the same name, he's just reselling the bloody product. So this has nothing with trademark protection, just their "quality standard", as if people buying the donuts from his trunk didn't know that they spent 4 hours in his car before getting there...