Thanks, you were of great help. I just wanted to confirm that I was thinking right. It is the right thing to do. I truly believe in Karma. So I'll do the right thing and refund, cause I do feel bad it will not work for them.
I did check Verizon website and they are correct.It cannot be activated. I just wish they had read "it's your responability..." They seem nice enough, so I will just refund, the auction price, letting them know that, it was up to them to check first and a no refunds, as is auction.