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eBay refunds

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I recently purchased a phone on eBay for $230.00. The auction claimed that it was used and that postage insurance was not offered. The mobile phone worked perfectly except for one major aspect, the speaker on the phone does not work. When somebody calls me they can not hear me, I can hear them, but it is silent on the other end. I confronted the seller and they said it was in fine working condition before it was sent and that it must have broken in the post. They have not offered a refund as they claim it was in working condition when it was sent. Is that right? am I not entitled to a refund?