DuBois Furniture Sold me defective chair and would not give full refund when returned Waco, Texas

On 2/18/2011 I bought a recliner chair from DuBois Furniture in Waco Texas. I took delivery of the chair on 2/21/2011. Some few days after placing the chair in my sitting room, I detected an odor in the room that I really could not stand. I began to search for the source of the odor, moving a couple of objects out of the room. I finally found that it came from my new chair. I can only surmise that the odor came from the dye used or from some other source in the manufacturing process since the chair was sold as new.
I am 88 years old so I asked my daughter to look into this to see what could be done. She was working so was not immediately able to look into the problem. But within a few days she did make time and called Dubois Furniture.
She was directed to the customer service department. After telling the representative the problem she asked to return the chair for refund or exchange.
The representative dismissed an exchange out of hand and said that a return would necessitate a restocking fee of some $200.00, almost half of what the chair cost.
Not knowing what to do short of hiring a lawyer, I had my son-in-law return the chair which he did on 3/17/2011. I am now out $200.00.
It seems to me that a defective product returned within a 30 day inspection period should warrant a full refund or exchange.