From what I know of the ebay rules, if the item is $250 or over, then the seller is required to use Signature Confirmation when delivering the item. If the seller did not use this, but only has delivery confirmation, then the seller is not covered under Seller Protection, and they will likely have to cough up the cost of the item. If the cost of the item is under $250, then the seller only needs delivery confirmation of the item. Therefore, if item is less than $250, the seller is no longer responsible, and will most likely win the case. These are really Paypal rules rather than ebay, but they are basically the same thing.
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