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Do that ^^
Then when you get it back, get it flashed PROPERLY and live your life.
Fighting over legal action for the sake of some cheap phone and arguing really isn't worth your while.
If you're going to want to use it all year round, which I presume you are, it's good to spend a bit extra and get a decent one.
The super cheap ones will fall apart in any sort of breeze.
I got mine from Amazon over a year ago. I just presumed they'd have gone down since then. But obviously with the new one not being jailbroken yet the prices have gone up.