2 Answers

Refurbished appliances are normally returned to the manufacture while they are still under warranty. The buyer, who has purchased a new appliance, expects an appliance that works and looks perfect. If there is a problem, the dealer has several options. He may send a repairman to fix the appliance, or he may exchange the appliance for a new one.

The decision to replace or repair the appliance is based on several factors. If the repair work is relatively minor, the dealer would prefer to have their repairman complete the repair. If the problem is more extensive, the dealer will often give the customer a new appliance, and send the damaged one to the manufacture. The manufacturer's repair center is more expansive, and they are able to do major repairs. 

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An appliance that did not work properly so was returned, fixed and is now sold as refurbished.