I have purchased over 200 books for my reader and out of those 200 I'd say there were about 5 I would have returned or traded for another book. Just like anything else, if the opportunity is there to abuse the system, it will happen. All of the books I have bought and hated were bought b/c of misleading blurbs. I would have that as a policy; the whole trade in/exchange idea is good (providing it has limitations). I would also make the first 10 pages available to read as an excerpt. That way, you might get fewer exchanges or returns if the return excuse isn't. "I couldn't even read the first couple of pages, how did I know I wasn't going to like it..."
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