Wal-Mart Supercenter Magnavox 32" Flat screen TV Norwich, New York

We purchased a 32" Magnavox Flat screen TV Jan 2007.  This was a floor model & on sale for $785.00.  February 2010 the TV would not turn on, no power.  We took it to a local repair person.  Imagine our surprise when he called to ask if we had had this TV repaired before.  We had not!  The TV had no factory parts and our repair guy says this TV was refurbished!  He replaced the capacitor and fixed a pressure plate that was not secured properly & could have been a fire hazard!  Cost $135.00.

When we contacted our local Walmart store where we purchased this TV, the current manager at first said "I wasn't even here 3 years ago".  We weren't blaming him personally but wanted to know if this was standard procedure of WALMART as a corporation.  He offered a "really good price" for a new TV but we are not in the market for a new tv since we already have ours fixed!  The only thing we were looking for was an answer to the question:  Does Walmart knowingly sell refurbished TV's as new at full/slightly discounted prices?   I guess my answer is yes, but is this legal?