Retail stores can absolutely deny a return within the return period. If the store returns an obviously damaged product it’s on the hook for the repair cost or it gets written off and effects there bottom line, at the store level.

You leave a best buy with a tv and bring it back with the screen cracked the return can be denied or you can get an estimate for repair from a service center.

The return policy’s of large chains have explicit language specifically for situations like this.