B&H selling returned products: Question for Mr. Henry Posner

On November 8, 2007 Mr. Posner stated in fredmiranda.com forum that "if a product is returned in pristine as-new condition and the reason for the return is something OTHER THAN "It's not working correctly," it will either go back on the shelf or become an "open box" item or go to the used dept, depending on individual circumstances."

Link: http://www.fredmiranda.com/forum/topic/587262

Does B&H still sell returned goods as new or have yo changed this practice after 2007?

Can you explain or give examples of "individual circumstances" where returns go back on the self?

Isn't it unethical and/or illegal to sell goods that have been sold before as new?

I have got nothing but excellent service fro B&H but I feel if you are still selling returned products as new, you should clearly inform the customers that products have been sold before.