Does anyone know the specific rules governing what should be done if an item doesnt work, like for example an electrical item that wont turn on?

As the buyer, if you are asked to return the item for a refund, I assume that you can insist that the seller pays you the cost of shipping to send it back, and also refunds you the full amount including shipping that you paid in the first place?

Is that correct, or are there other options that the seller can give you that are acceptable to paypal for a non working item?