I have purchased several Applecare contracts on eBay without a glitch. Several vendors with excellent scores sell thousands of these. They email you the number, you enter it on the Apple web site and the guarantee gets extended. So far so good. However, I encountered the following situation: The iPhone 3g is still in warranty for another month with an Applecare 1 year extension (kicks in in a month when the warranty expires but already attached to this iPhone). A minor problem with the iPhone. The Genius says that the phone came into contact with water (did not) and the sensor inside the connector has turned red, therefore the warranty is voided. $200 fee to replace the phone, and the Applecare transfers. Otherwise the Applecare is worthless on this device. He suggests to call Applecare to get a refund. Applecare says that they would refund against the receipt. However not if purchased on eBay (only from Apple or authorized dealer). The manager of the department and customer relations say nothing can be done. Warranty is voided and though Applecare has not kicked in is also voided, will not be honored and will not be refunded. Now, Apple derived revenue from this Applecare (their wholesale price). The Applecare is valid (not stolen or anything like that) but they will not honor it. I have a strong suspicion it is not legal under most States consumer laws for them not to refund the purchase price, as there was consideration and no value was or is to be derived and clearly a consumer cannot police the vendor of a legitimate product. The seller in my opinion sold a valid contract that was registered, so he could not take it back. It is Apple who is not willing to honor it given the circumstances. I got nowhere with Applecare or customer relations. I did resolve the problem with a store manager that appreciates the substantial business we give his store, he was able to see the pristine phone had no water damage whatsoever, sensor or no sensor, and replaced it with a refurbished one. Needles to say, I am an Apple fan and mostly a happy consumer with them. But sometimes they are ridiculously rigid and illogical and sometimes this lands them in muddy legal waters. As far as I know they have not taken steps to rain in or control the eBay sales of the Applecare contracts. These vendors sell thousands. I am sure they know who they sold the contracts to.