Based on what? EVery user of PayPal agrees to their terms of service explicitly. You don’t like them, don’t use them. This is simply a matter of taking responsibility for your actions . . . and knowing what you are doing before you do it.
Legally wrong.
First, a contract must be negotiated by both parties. This is a contract of adhesion. Although technically legal, she has a great case that PayPal was virtually the only payment source she could use and their actions are unconscionable. In addition, she was not given a chance to defend herself to a reasonable degree.
This is great fodder for class action. Also, Ebay is not about to pay some lawyer in her state $6500 retainer to defend a $2500 action.
She should get a lawyer, write a demand letter mentioning a potential class action and demand $2500 plus 40% legal fees. At a minimum they will settle for $2500, with her paying her own lawyer.
In addition, their TOS legal language is horrible. Ebay MAY REQUIRE you to destroy the item?
Ebay is therefore liable for the arbitrary decision they made. Secondly, where did SELLER agree that the item could be destroyed?
Destroy a $2500 work of art to avoid $20 return shipping charges? Does not pass the smell test... and juries eat that stuff up!
“My” damages claim just went to $102,500. Lots of mental anguish, you know.
:)