Ok, I formed a JV with another member here. He was acting as a dropshipper for me for ebay. We did a test run, which ran perfectly. I miscalculated some fees and came out in the red, but I ate it and moved on. He approached me again with a new product that was selling very well. So I took it and sold all 3 of my stock. After the all was sold Ebay emailed me saying they removed the listing because it was counterfeit. Immediately one person wanted a refund, which I granted. Her product had not been shipped as far as I know. The second received his and found it to incomplete and none functional and wanted a refund after opening up a dispute. I closed the dispute by granting the refund and sent him money to return the product. Its up in the air on if he follows through on that since I haven't heard a response. The third is waiting for his product and I'm not sure if it was even shipped. If it hasn't I want to just refund the money and call a end. If so, I want to email him and tell him if to return it and I'll issue a refund. Now, here's my problem. My supplier is threatening legal action I suppsed if I don't pay for the items. I was always upfront and on time with payment owed. I don't plan on screwing anyone. But in this case, I think we both should take the fall. I would be even more in the hole if paypal didn't put a hold on the funds because of the disputes. What do you guys think I should do. I'm clueless at the moment. I don't have the funds to pay for too much extra, especially since the rules were not set out before hand on whose responsibility is whose. I got into the agreement saying I would list the items and that's it. Edited because I hit the send to soon.