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SirPrimalform: If it was sold as working then you're entitled to a full refund including postage (and the cost incurred sending it back).
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SimonG: mostly this, actually, the seller has either the right to repair it or to send you a new one. Whatever he does, he does have to cover the shipping. Usually you can't demand a refund until he ultimately failed to fix the mistake. That is EU law, so UK law might be different in the details.
I think the seller probably does have the right (in the UK) to fix it or send a new one, I was just assuming they'd be unable to. Either way, you're entitled to the money it cost to send it back.
Post edited February 20, 2012 by SirPrimalform
maybe this helps

http://www.llamma.com/xbox/Repairs/dvd_open.htm