When does seller's responsibility end?

IMO once it has been in the buyers possession for a week, and they have not contacted me with any issues, I feel like the statute of limitations has passed.

That said, I've never been in such a situation thankfully, but if a buyer was not satisfied with the item, I would tell him to ship it back to me, fully insured, using all of the original packaging materials, for a refund. If I paid the original shipping, I would subtract that from the refund of course.

If the item was damaged in transit, it's the receiver's responsibility to either refuse to accept it from the carrier, or file a damage claim with the carrier. Most carriers explicitly say not to ship it back to the sender in the event of a damage claim, because they want to inspect the packaging and the damage, so the onus is on the buyer to bring it to a UPS or Fedex or USPS center to follow through with that.

Anyone still following this thread; here is the update. Paypal ruled in his favor, I received the DAC back. As I suspected it works perfectly. However, it is missing a DIN cable, and the plastic inner wrapping is missing. Also the manual is torn.
I called Paypal and re-opened against him to try and get my cable back.
Nice. I like using Paypal, but this makes me seriously reconsider them.

Sounds like the weasel was just trying to shake you down on the price. Good luck with PayPal.

I wish you the best of luck, but did you sign for the returned item? Paypal won't do anything about stripped parts. That happened to me once and I even had the Police come to my house to make a police report. Hopefully it'll never happen again, but if it does, send the unit back to your local post office and open it in front of wittnesses while taking pictures. The unit I had returned was missing the PC, manual, and demagnetizer. It worked fine and I sold it for more money to someone else and it still works fine. Unfortunately for the guy that did something similar to me left me his work phone and address and I got him fired after months of hassling them via pay phone and mail with the help of some friends. He to this day still hasn't figured it out. I don't know why people are allowed to get away with these things, but I'll bet his Credit card co not paypal made the decision. The guy that tried to cheat me was even suspended by ebay for too many negatives, but it didn't help me much. You'll just have to replace the parts and resell the DAC and hope you don't lose too much. Best of luck. If the unit is still working as you say, you did your part.