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TV Exchange at a prorated price?

I recently noticed a small white dot on my 56 samsung DLP tv. Because there is no one in my area to repair it, Samsung is offering to exchange it, but they will offer a prorate exchange. Can anyone tell me how this work?

That means they’ll decide how much your used TV is worth due to its age or its fair market value (something significantly less than you paid for it), and offer you that toward the purchase of a new set at full retail price.

The Twist – Keely Smith/The Twist – Louis Prima