I had spoken to them, explained the situation. The thing literally had about 20-30 minutes of use. It was sent back in a box that was perfect, with all the paperwork. Furthermore, the first person I spoke to told me that the refund was no problem.
And Amazon has Kobo beat regarding refund/returns also. I know someone whose Kindle 1 died( couple of years old). This person was given a $75 credit towards a new Kindle 3.
They routinely replace defective Kindles promptly, and they give no hassles with refunds as long as you're within the 30 day window..goes for if it's open or used too.
I think the reason why Kobo is so ridiculous about refunds/ returns is because they know their product is inferior. They don't have the confidence to truly stand behind it.