From the sounds of it, I would say scan are doing nothing wrong. They are agreeing to replace the product which was damaged due to installation under scansure. Once you've got this replacement you could then sell it as brand new, so you shouldn't lose too much. What is the item if you don't mind me asking? I mean if we're talking about something dirt cheap then I think your making too much of a fuss, if its something worth quite a bit, then the situation may be slightly different.