Master Looter and trading roll items
So recently I hosted an ulduar 10 run for the good old times and to show it to a friend. As per usual I set the loot to Master Looter, as I am not lazy to distribute the loot and think it's the best way to avoid ninjaing. Immediately a raid member threatened to report me, claiming that Master Looter was a bannable thing because of the "herald of the Titans" achievement and the low lvl items needed for it. Basically he wanted items that were worse than his for the achievement and claimed that since raid leaders usually wouldn't give him items worse than his, in light of the legit interest in these items for the Herald set, ML would be a reportable thing. That seemed really scuffed to me but I don't claim to know it all so I'm asking here. Is it frowned upon by the staff to have loot rules on Master Looter in ULD/NAX?
And another thing I've historically wondered about. If we are in a raid and an item is rolled and say I win it, Is it against the rules if I take an offer of another person in the raid to sell it to them or give it to someone? I mean, clearly its kinda ethically wrong but I think there are shades of gray on the matter. I think we can all agree my roll shouldn't be counted at all if I have a better Item than the one that we roll for, but that is exploitable, since I can swap for a lower item lvl just for the roll to look like I need it. But let's say the rolled for item is better than mine. I win the roll and am offered 10k for the item. The 10k is a legitimate interest for me and after all I won the item so I can see the school of thought that now it's mine - I can do with it as I please. Do the admins agree? Can I win an item that is better than mine and then give it to a friend who has even worse? Are there rules against that and where is the line drawn?