That's exactly what happened. The seller deliberately tried to deceive both Amazon and you, the buyer, as to the true status of the phone. Also, the Apple warranty on an iPhone starts when the phone is first sold by Apple, not when the box is first opened.
I agree, This seller has already scammed you and if it was me i would want my money back and I would be giving negative feedback to hopefully stop him scamming someone else.
I know I can return it and get a full refund, but it is in really good cosmetic condition and the battery is good and for $140 that is a good deal considering it will cost me that much to get one in similar used condition off ebay...but then I have no idea if the battery is junk or not
The refund will show in your Amazon account, The first you will know of it is you will get an email from Amazon saying you have a refund.
It will be refunded to the card you used for the transaction.