Well if the buyer was offered a full refund, there is no excuse to keep the watch and complain about condition. At the same time however, the seller cannot be trusted and should not be allowed to post sale items. Misrepresenting a watch is a big no-no, in this case negligence is no excuse. If another person sees this thread and does the same thing, and later apologizes, what is the precedent? Just my two cents.
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