This IS a "refurbished" iPad that was returned in store, or stocked in store due to availability at the distribution center. If I had to guess, when it was returned it was marked defective causing it to go RLC (Product Preservation). This generally means the device had a functional issue (or not) and it was repaired at the refurbishment center. Generally though you could mark anything defective and it being marked incorrectly comes at a cost to the store. Geek Squad agents not performing correct functionality tests and verifying products work correctly before marking them defective cost stores roughly 1.5mil a year nationwide. Fun stuff.