I've been selling on ebay for about 2 years and have come across about 10 claims that buyers filed againts me.  Most of the claims were just because the buyer didn't read the description of the item and assumed something that was not true about the item I was selling. 

I have won all of the claims filed againts me except for 1.  This was the worst claim from all of them taking account the evidence I had againts the buyer.  I was selling a Broken Motorola Razr cell phone for parts on ebay like many people do.  I clearly stated that the phone was not working and that it was for parts or had to be repaired.  After selling the item and shipping it.  The buyer filed a claim on me stating that the phone didn't work.  I was furious, but didn't really care because I knew I would win this case. 

I WAS REALLY WRONGGGG!!!

Paypal and eBay have this very ridiculous policy that if the buyer sends back the item prior or while the claim is in progress they AUTOMATICALLY grant the buyer their money back.  So paypal deducted the funds from my paypal account and send it back to the buyer.  I called Paypals customer service number and spoke to someone who thought that was bogus.  The PayPal employee actually said that he thinks this is the stupidest policy that he has ever seen.

One way around that policy is if the buyer doesn't send the item with any kind of Delivery Comfirmation, then PayPal takes that as never being sent!!  This was told to me by the same PayPal employee.

Be careful guys, next time you sell a broken item.  Make sure your description says broken from head to toe!!  Have a good one.