well, did you guarantee it for christmas, Im assuming you did either expressly or by implication, in which case, can you claim from UPS, did you take out a guaranteed date service?
As for paypal dispute, well buyer did get it, and they are not saying anything bad about product other than it was late, you explained this rescheduling to buyer, what did they say?
Paypal will likely request a return and refund....
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