There is that word again! What you don't do is write the person off and ignore them and hope the issue will go away. Exactly like what Yellow is trying to do with me.

How do you 'know' the customer is lying? What effort has been made to verify the situation? Why would a customer waste their time trying to get a replacement product if the original was not damaged? It just makes no sense!

If the person has a legitimate complaint then the issue will not go away.

There are laws that protect the consumer from exactly this type of treatment. Laws that protect consumers from vendors who ship damaged goods and won't replace them.