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I would interpret the statement "either a new one or a newer one than yours" as meaning...
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You would make a great lawyer!
To be quite honest, I would normally prefer a refurb device over a new one. But only if the refurbs go through a similar process to what we used in an electronics manufacturer that I used to work for. New products were tested, but some of those tests were sampling. Other tests were done on every product. In the case of returns, those all went through every test process, no sampling. Before repairing one, the "broken" device as sent in by the customer was first subjected to the full suit of tests. If it passed them all (before we had even started to think about possible repairs), then the device was rejected for sending out to a new customer. We called these "NTF's" for "No Trouble Found". i.e.,the assumption was that there was something wrong with it, but we couldn't identify the problem. In all reality, the issue was probably that the customer lied about it being broken. But we didn't want to take a chance on that with a new customer. We might re-use these NTF's in-house (they were clearly marked), but they'd never go back out to a customer.
However, my specific concern with a Kindle is the battery. That is the heart of keeping the device running, and it is not easily replaceable as far as I know. I do not want a used battery with unknown usage history.