Equipment Grading Honesty

What do you do when a seller represents an item as one grade and when you receive the unit and it is far from expectations based on the Audiogon grading system?

Does anyone read the grading system? Does anyone realistically or honestly grade their equipment according to this scale?

just received and 8/10 item and the Audiogon grading is detailed as;

8/10: Very Good - Perfect front face, 1 minor flaw on top or side is acceptable.
This item has seen some use, but still appears perfect from the front. A perfect front face plate includes the front top edge. Be sure and check this edge since it is very easy to nick. On speakers, all four front edges should be inspected.

) Electronics may have 1 or 2 minor scratches (max 1/2" long, very thin) on the top plate or the sides of electronics, but again, the front must be perfect. There should be no signs of rack mounting. Chrome should have no pitting, but may have some discoloration in spots less than 1/4" diameter. Silk-screening has no separations, and the lettering shows no wear.
) Speakers may have minor discoloration along edges, but no scratches that show through the veneer, except for the bottom, which may show signs of stand mounting or floor scraping.
)Turntables covers may be slightly hazy from record sleeves being laid on them, but should not have any highly visible scratches anywhere. The headshell may have some scratches from cartridge mounting.

My opinion of the unit is drastically different and here is why;
) Multiple scratches on all 6 sides of the preamp, while none of them are major (cut thru the paint) they are too numerous to count. ) Multiple small dents on the edges of the front and top plate.
) Multiple scratches on all 6 sides of the power supply, while none of them are major (cut thru the paint) they are too numerous to count. Multiple small dents on the edges of the front and top plate.
) Multi-meter missing back cover.
) Multi-meter glass damaged.
) Multi-meter not functional.
) Multi-meter battery connection loose and bent and will not hold a battery.

If I were selling this unit I would rate it a 4/10 as per the below audiogon grading system

4/10: Mediocre - Rough physical condition, but all funtions work perfectly.
This piece would not go in your "big rig", but is not worn out.

) Electronics may have many small scratches, or have a broken display face, or have a bent lever. Chrome shows severe pitting, transformer covers are very rusty, glass has one or more cracks in it.
) Speakers may have a dented corner or bent binding posts, but drivers are not physically disfigured.
) Turntables may have missing covers, or show much discoloration on the platter, or scratches on the plinth from the platter rubbing against it.

I contacted the seller and his explanation of the rating is "The unit working fine because i use it here before ship out to you. In my opinion that is 8 out of 10 condition.".

Your thoughts and comments are greatly appreciated.
First off I would have like to see you post what the actual ad stated. Were any of these flaws disclosed in the ad? If so that may have been the sellers out (according to him). Although I do agree that the 8 rating is too high for the preamp as you describe it.
I just caught an ad for a Conrad Johnson amp with a 7 rating, but he disclosed that the amp was NOT in working condition. This seller clearly is rating his piece on cosmetics only.
I don't think you need our thoughts on this matter, bottom line is do you still want this pre amp, do you want it discounted or do you want to send it back for a refund? A matter you should first take up with the seller and see where it goes.
If you get beat then kick butt.