Defective and Damaged Merchandise

I bought 4 pieces of inexpensive furniture from Online Stores, Inc. for a total price of $821.10.  It was shipped to my home, and the outside of the cartons had no apparent damage, so we did not note any damage on the delivery receipt from the trucking company.  Upon opening the cartons to look the furniture over, every piece of furniture was terribly damaged/defective.  I contacted Online Stores Claims Department, and after I sent pictures and descriptions, they have decided that this was in some way my fault, since I did not make a note of "damaged" on the delivery receipt (which “damage” I could not even see until I opened it up). They have given me two options - 1.  Keep the furniture and get a 20% discount. (I will have to pay for repairs to every piece of furniture and probably replace all hardware unless I can match it, because some of it is missing)  2. Send back the furniture and pay for shipping and restocking. (Because of the condition this furniture was received in, I am sure they will not want to restock it).  (I estimate the return shipping will cost me anywhere between $250 to $500, because I live in the mid-west and it has to be sent back to California)  I have not made a decision of what I should do in this situation.  I would offer you this advise: If you are thinking about ordering from this company, please reconsider.  If you have ordered and are awaiting a shipment from them - when it arrives even if you do not see damage on the outside of the cartons, just note "damaged" on the delivery receipt anyway for your own protection.  It was my misfortune to find this company online and to believe that they had the best prices available. I am almost sure that I was scammed because how often do you find every piece of your order damaged or defective and no visible damage to the outside cartons?  This company may possibly do this on a routine basis by buying damaged merchandise from the manufacturer at a very reduced price and sending it out as good merchandise, therefore trapping the customer into having no recourse except to keep the furniture and pay for it. My feelings are that this is nothing less than criminal.  However there is nothing that can be done at this point except warn other buyers, and it is a hard lesson learned.