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Refund and return policy practices

Question
When offering items on online auctions, what should I consider when spelling out my refund and return policy in the Terms and Conditions section? 
Answer
You should state clearly when you will accept (and not accept) returns. If you want your return and refund policy to be "all sales are final," that is fine, but you must spell out this policy preferably in all capital letters and boldface type so that your buyer will see it before bidding. It would also be wise to include that boldfaced statement as part of the item description, so the buyer can't complain later that you "buried it in the fine print."

Remember, an "all sales final" practice may limit auction participation from some prospective buyers. 
Brain Trust contributor: Author of The eBay Seller's Tax and Legal Answer Book
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