Check if the phone is jailbroken, if it is then go to Cydia and check for Ultrasn0w or Blacksn0w (Yellowsn0w on phones with pre-3.0 iOS and Bootneuter for 2G). If one of those are on there then its not factory unlocked. Whats the easiest way? Ask them to bring it to you unjailbroken and restored to factory state. If they refuse, its probably not factory unlocked. Oh, and check with a sim card from another carrier and make a call, you can change the carrier name in the upper left hand corner (and keep it that way even when not jailbroken if restoring from a jailbroken back up).