In the episode, Quark must choose between loosing his Klingon love,Grilka, or his life at the hands of a Klingon bat'leth from a Klingon challenger. With the help of Worf, Quark's honor (and life) is retained, and Grilka becomes his mate. All in a good days work, I say.
This was not the first use of the costume. In it's original configuration, it goes all the way back to the season 6 TNG episode 'Rightful Heir' as the clone of 'Kahless the Unforgettable' as portrayed by Kevin Conway.
The interior tags verify this .
This was originally sold in its Quark configuration at the Christie's Star Trek 40 Years Auction in 2006. The winning bidder placed it for sale many years later, and I was incredibly lucky to have acquired it from him.