Decline or accept upon receipt of damaged gear

Refusing the shipment kills the transaction and you can stop payment through your credit card company. Its the seller's deal, the insurance they did or didn't purchase lists them as the beneficiary and its their problem. They are responsible for satisfactory arrival of a product.

All well and good if you paid with a CC. Sometimes it gets complicated.

I chose to refuse the shipment and cancel the payment. The seller was critical that I did not first accept the package and then contact him to arrange a return.

Thats why there is an option to refuse shipment. Its either his fault for not packing it correctly or the shippers fault for not handling with care. In either case, it is FAR more complicated if you had to be involved because they could then claim a third option; that you damaged it unpacking. You did the right thing and there are plenty of stories out there where the buyer got burned. There was a thread here not long ago where the buyer had waited over one year for a part for some speakers that no one was certain would solve the issue. Long past the timeframe to enforce your purchase rights for a refund. The seller will get over it...or not, but you wont be the one without a chair when the music stops.

As a seller, I would always accept a return if the box or package had significant damage. 

Bob