carlsbad
I have never refused shipment on a package. Never been in a situation where i had an option to. So tell me what happens when you decline a damaged package?
A refused package is returned to the shipper.
The refusal frees you from any obligation or expense because it is the shipper's obligation to have the package delivered to you safely. You lose a lot of leverage in negotiations once you accept the package, and open yourself up to potential claims against you, such as the product wasn't really damaged but was misused or mishandled. When you refuse the product, the outcome is mostly between the shipper and the carrier.
The recipient is never under any obligation to knowingly accept damaged goods.