Tony,
I know it's a bitter pill to swallow, but in this day & age of the internet and routine cross-country shipping, it's the cost of doing business

Remember, the seller has also spent $105 on shipping and is back to square one. If he was at all knowledgeable, he should have been able to see this grinding and should have informed you of it before any money changed hands. If he was just a dishonest jerk he would probably not even offer to refund your purchase price.