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Dispute a request for return

I recently sold a sealed packaged bike monitor. The buyer opened it and tried to pair it w their devices and it did not work. They are asking for a return w a refund. I cannot sell this item as brand new anymore as the package is opened and the monitor is used. Do I have to accept the return?  Should the buyer contact the manufacturer for details (as the item was brand new). If I have to accept the return, should the buyer cover any of the shipping cost, etc..  

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