Thinking about it, it seems to me that Paypal could use this justification even if there's no misdescription by the seller, and no actual or implied claims are made that the item is genuine. It is commonplace to describe instruments as "labelled as" or "attributed to" where the provenance is uncertain, and this is used by the biggest and most reputable dealers and auction houses in the world. However so far as Paypal is concerned, their T&Cs say if its counterfeit then to get a refund it must be destroyed .

Even if you know it's a fake - especially if you know it's a fake - then you'll be caught out by this clause. I once bought (not via Paypal) a violin stamped "Duke". Richard Duke was one of the great English violin makers but he is widely copied and there are thousands of instruments bearing his name. The person I bought it from told me it wasn't genuine, and the price I paid reflected only the quality of the instrument and not the label. I was perfectly happy with the purchase and it's a perfectly satisfactory instrument for its price. In my experience this is seen as entirely normal and acceptable practice in the musical instrument world and no one thinks anything of it. However under Paypal's rules, if I wanted a refund on such an instrument I would have to destroy it.