An interesting question. You seen to be somewhat familiar with the basics of retailing, yet you ask such a fundamental question. Surprising!
There are several scenarios in which customers may desire a refund or exchange.
For instance, there are the 'unsatisfactory' or 'unwanted' items. In these cases, refunds and exchanges are not madated by any laws. However, the reason for a store to have 'any policies at all', is to encourage customers to shop at that store, confident that they will have some protection if the product does not perform to their satisfaction. However, this confidence is lost if consumers start to hear that legitimate refunds are being refused at specific retailers, such as what we see with Crappy Tire.
Another reason to have policies is to ensure that the store complies with the legislation concerning the sale of goods, and consumer protection legislation. In this case, a store policy is actually irrelevant, since the policies cannot supercede the laws. However, it would be helpful if the official policies of the store were in line with the legislation. Sadly, Crappy Tire falls short in this regard, too.
Another reason for policies is the adminstration of warranties, if the retailer chooses to do so. This really isn't necessary, however, because consumers are already entitled to refunds (or exchanges, if they wish) under the legislation. Or, a customer might choose to deal with the manufacturer directly, under the warranty the manufacturer provided (instead of any warranty the store might choose to offer).
"Protect themselves"? From what? From having to honour their legal obligations?
Certainly, if something is illegal, the stores are free to 'protect' themselves.
The problem is, that nobody has yet offered any compelling evidence that it is 'illegal' to "return an item you've purchased, using a receipt for an identical item that you've purchased later.".
Sorry!
An interesting idea, which the Crappy People keep proposing.
I don't think any consumers have yet offered and opinion on this proposal, though.
Agreed. Why, did someone post here stating otherwise?
But a product that does not meet a reasonable standard of durability is still defective under the Sale of Good Act.
And is the name-calling really necessary?

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