Returns

[#1]

Assume you buy something and then return it for a refund, what happens to it ?
Is it just sent on to the next person who orders it. Or is it sold off as a job lot on one of the auction sites ?
I ask because there have been instances where a computer or other item was sold as new only for the purchaser to find someone else's details on it or evidence it had been used before ?
Perhaps it's the definition of NEW, is something still new or can be sold as new if someone else has had it before ?

[#2]

I think it all depends on the seller. Some like Dell bring the item up to a merchantable condition when sell on its outset site.
A number of retailers have outlets on ebay, Argos for example. They will sell through this method. Also At a weekly market near where I live there is a stall that sells Argos returns.
I think it all depends on the retailer and the condition of the returned item.

[#3]

I've often wondered the same.
If an item has been returned unopened then I assume that it could still be termed as new.
If it has been opened, taken out the box and inspected but not used I expect the term new could also be used.
But if it's been tested before being returned then I can't see how it could be classed as new.
Funnily enough I was looking through eBay listings for an Acer tablet. Some sellers had it listed as 'a 14 Day Customer Return Good Condition'. These sellers had a grading system from A through to E
A being boxed as new in original packaging with full manufacturer's guarantee and E being no original packing, non-essential items may be missing, some in-box items may be missing and may contain heaving cosmetic /structural damage.
Have a look here for an example.