Dissapointed buyer, item malfunctions experience?

No we are not dealers, but we should be fair. If a unit has malfuctioned when it was received by the buyer than I think a refund is in order. If the buyer wishes to keep the item and have it repaired, and you agree. Than I believe a repair or work order be faxed to seller in order to make a determination about your responsibilty as the seller. In many cases it is the container that the item is shipped in that causes many problems, and without the original box no matter how secure it looks it still is not being properly protected.

I happen to be the unit's buyer. When buying a used piece of equipment, as someone stated, one assumes the risks involved in the process. Obviously, one doesn't look forward to the hassle of repairing the unit, playing the phone-tag with the tech and being in the limbo, but that's what buying used gear sometimes involves. From now on, however, I will be buying new and covered by warranty equipment only (it's clear to me that not having to deal with the gamble aspect of used equipment is worth the extra investment).
Has it ever happened to me as a seller? It did. Due to some cosmetic damage, the buyer got half of his money back and then stated that he could live with some dings and dents.
Obviously, I find amusing the Sc53's statement about the seller not having any responsibility for the unit's proper operation upon arrival. It's one thing when it goes bad after some time of usage, another when it doesn't work properly from the start. It's called DOA. A claim with a shipping company would've been legit if there was a sign/evidence of mishandling or damaged packaging, which wasn't the case in this instance.
So, what one has here is the unit that doesn't work as advertised. I am not interested in speculating about whether it was operational when shipped, or something undetectable happened during transit. Based on the seller's perfect feedback and my gut-feeling I made a decision to resolve it the way I did. It's not because I am a "nice" guy, but rather because it seems to be a sensible way do it, and keep this site and our relationships civil and responsible.
That said, had I detected in this seller even a trace of Sc53's attitude(it's your problem now!), rest assured, this situation would have taken a totally different direction.

I've had some problems like this, once an amplifier seemed to have a thermal issue, it would turn on initially, but once warmed up if it shut down, it would no longer turn on. I took it back and gave full refund.

Another time I sent a speaker to Canada and when it arrived it had a blown driver. After some communication, the buyer offered to split the cost of the driver. I agreed, but since I sold a $3,000 pair of Linn 5140's for $800, a VERY fair price especially when I sold them (two years ago) the extra couple hundred dollars meant I basically gave them to him. Had I know of the issue, I would have just donated them to good will.... would have been more productive for me, but in the end he got the speakers he wanted and I got, well not much but that's how it goes some times.

I once bought some speakers that were rated 9/10, but when they came they barely made 8, really a 7. The seller gave me cash back, to me that was fine.

I guess what I'm saying is it all comes down to the two involved in the deal and whow reasonable and flexible they are, and what you both can live with.

Sc53 - thanks for the honest post. Now I know to skip over anything you have for sale.

If a buyer sells at a considerable discount and it needs repaired the buyer should meet the seller half way on repairs or return the unit. The seller should also be the one who makes contact and is in charge of the repair so he knows exactly what was wrong and exactly what it takes to fix that specific problem.