I had the same thing happen with an IMac that I had that dropped the hard drive. I was told that I needed ProCare to get the repair done in less than three weeks (which I bought), and then when I got it back it was screwed up WORSE. I called AppleCare and complained and next thing I know I'm getting a call from Cupertino wanting me to send my IMac to them. I hesitated because I didn't want to be without it, even though it was a mess, and the next day I got a brand new aluminum IMac. The next day I received a check from Apple for the cost of the IMac. I asked them why I got the check and they said because at the time they were going to refund my purchase price but when I elected to accept the 'replacement' I forfeited the check, which I got anyway. I still have it here somewhere. IF I would have cashed the check I would be guilty of theft. Basically committing some form of fraud or 'conversion'. Whatever that means, according to a friend. Apple would have, at that point that I cashed the check, been able to sue me for it even though it was their mistake...
Apple needs to, and it's hard to write this, be slower and more deliberate in dealing with customers and have more control and awareness over what the various levels of the corporation are doing so that the refund people know what the PR/customer service people are doing. The second that the IMac replacement became an option, the check should have been unprintable from their system. They risk the distinct possibility of someone cashing the check and keeping the IMac and 'disappearing' to be unavailable to recover their money, or the computer... One could argue that it's their fault. I think in my case, Apple would have prevailed because they acted in 'good faith' that I would accept the new IMac in place of the check, and either return or destroy the check. If I decided to keep both, I would not be acting in 'good faith' and would be then guilty of a crime. Stand there saying that it's Apple's fault would look pretty weak...
Although you have to wonder how a 'free' Touch could be entered into the system as a 'purchase' and generate a refund check... Still, the 'right thing' is to return the money immediately. The 'honorable thing'...
People need to think less of themselves and more of the greater good. Of doing the right thing. If more in Wall Street thought that way, this country and the rest of the world wouldn't be hugging to toilet and a whole lot of people in Africa and other points of the world wouldn't have starved to death a few years ago. On a soapbox here, but ethics and morality MUST be at the core of a civilized society and must be at the core of business and shock of shocks, politics. Otherwise we become a soul less and treacherous corpse of a country that no one will trust... Just think if we all totally lost all trust in politics (I'm nearly there myself). Lost all trust in corporations (I'm there already). What a world it would be... Off soapbox... Ironic that so many religions value ethics and morality and how many practitioners of those religions don't.