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broken cup in shipment

Buyer received order, but cup was broken in the shipment.  I don't want the other pieces returned and buy is requesting her money back.  She paid .99 plus 8.00 for postage.

 

Is there a money back quarantee on this since is arrived broken?  How to we handle this?  I have instructed buyer NOT to send back the items.

 

Please advise.

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