Sold a Brand New item on Craigs. Buyer pickd up without inspecting & later says it's not brand new & asks for refund or suing me.

I sold a brand new camera on Craigs, that I got as brand new online. I had never opened it and listed it on Craigs as Brand New. This buyer came to buy it and picked it up without inspecting it in front of me. Later she emails me that she found an empty memory card case in the box which didn't belong there and accuses me that this was not a brand new but used item sale and demands full refund. I have refused and mentioned that she should have checked the item at the time she picked it up so I could have a chance to defend myself if she found this empty case (which could be a lame excuse just to get rid of this deal). I suspect she may have found better deal and just wants her money back now. Upon my refusal, she is threatening to sue me in Small Claims court and says that burden of proof will be on me.

Actually in a civil suit the burden of proof is on the plaintiff. But, unless you have proof that the box was sealed as new it will be a he said/she said case.

So if you don't want to pay, let her sue, go to court, tell your story to the judge and let them decide.

You also should have told them to inspect it before leaving, but even then, they could lie and say they did not