From a Sears employee...
Just thought I'd throw in my own 2 cents...
Did my five in the Army, now I'm going to school and I have been working at Sears as a Loss Prevention Lead for a year now. Working in LP I mosty deal with shoplifters and employee theft, but I occasionally have to deal with an irate customer that is pissed about a return policy. Thus far, I have never had to talk a customer down over a Craftsman tool exchange.
The official policy, which has never or will never change, is:
If you don't like the tool, if the tool breaks, or for any reason you can come up with, you can exchange your old tool for a new one.
As far as the "refurbished" tools go, I think that store(s) is cheating you. I get lots of memos on how some stores do that to cut back on Return to Vendor shipments to keep store numbers up. It is unfortunate that it happens, and if it ever happened to me I would raise hell untill I got a new one. Now, we do refurbish the ratchet mechanism with new drives, if you break the drive, but you should NEVER EVER get a used piece of crap back. It says right there in the warranty that you get a new one.
I know I work for Sears and this is all sounding biased, but the fact is, they pay me for $hit, (I make 1/3 of what I did in the Army) they cut half my benefits after the merger, and if it wasn't for my discount and the plain ole fun of catching shoplifters, I wouldn't work there.
On to the quality, yeah, it sucks. If you buy a standard set, you can almost expect to run into a problem with it. It has nothing to with the merger, its the new Professional/Standard line of products they have. If you want something the quality of a Snap-On tool, put down the money and buy a Professional Craftsman. It's still cheaper than the other guys and the warranty is just the same.
I use my tools to wheel just like the rest of us, and I don't think anyone can ever beat being able to trade a tool in for any reason for a new one. There was one time I let a friend of mine borrow my tools to work on a jeep. (Bad idea in the 1st place). He fixed on a trail in the rain, left the tools all wet, and they rusted in the tool box. I couldn't even oper my channel locks. Sears traded EVERY tool in for new ones, almost $400 worth, no questions. I would like to see the look the Snap-On truck would give me if I tried to do that.
Al