>How do they get away with selling it with the Leupold name on it in a box that look's like a Leupold box? <
They didn't - at least not with me.
As soon as I got it, I knew it was bogus. The box wasn't quite right (I have a couple real Leupolds), and the serial number on the scope was all numbers instead of numbers followed by 2 letters which key to the manufacture year. I didn't even bother to call Leupold to verify the number.
The scope itself looked good so I thought it might be ok on a 22lr for $25 (he refunds me $85), if it dialed in ok at the range. I didn't like how it dialed in so I just told him to give me a full refund. It had very nice glass, but adjustments, not so much.
I quickly got refunded the $110 and didn't even have to pay for return shipping. As I told the seller, I didn't think he was aware he was selling counterfeits since he used USPS for shipping - he was very apologetic.
Since I was in the mood for a new scope, I bought a Leupold vx-freedom 1.5-4 from Optics Planet for $164 tot - a little better than the going price. I called in to L, and verified the serial #. It's a good AR scope.
Ebay and Paypal have builtin refund procedures so I knew I was at -0- risk on the deal.