Interesting story, and I have some definite ideas on how a Libertarian society would handle this. What's disheartening is the quote from Bona Flecchia, a journalist, who says states the case exposes lots of loopholes in "regulating" Internet commerce. From my POV, this isn't a case that exposes the need for more regulations, but a perfect case of caveat emptor and how cross-indemnification should work.

The story also didn't go into depth on the real crime, one Rodney Fee who seems to have embezzled $60K from the company, leaving the customer's involved hanging. It seems that whether you're buying off the Internet or at a brick and mortar retail store, this kind of crime can hamper business and customer satisfaction.

Anyway, I'll have more to say about this later...
MSNBC - EBay, PayPal and the Fufu's furniture fiasco