Dispute with buyer over "damaged" product that was purchased from me

You did not provide enough information in your description, but I will try to give you an answer.

The Statute of Frauds requires that the contract to be in writing, if the sale was for an items, and it was for more than $500.00. Therefore, since you do not have a written contract, it makes the terms of the sale difficult.

Did you make any express warranty about the condition of the item? For example, did you say that it works like a charm, it has not problems, it runs perfect, etc.? If so, then you are probably going to be bound to those terms.

Can you please post the exact wording of your craigslist ad, so that we can see what it was that you were offering, regarding price, terms, warranty (if any), description, etc.?

An item? What? A car, a lawn tractor, a 747? C'mon give us some facts to deal with!

Generally speaking, if you notified them that it was an "as is" sale, then there's little or no duty on your part.

If the item was a car and it was able to pass an inspection, then I would say forget about it and let them sue you.

If the item was NOT a car and was something else with oil in it and a motor, anything from my lawn mower to the elevators at the Empire State Building, then as long as there was not a hidden defect or a defect which you intentionally concealed, then you are not liable for any warranties as the non-commercial seller of the item, as long as you have not sold other such items in the last year.

In that they came to you to buy the item and you listed it there, I believe that they would have to bring the small claim in your jurisdiction.

This answer is provided for informational purposes only. True legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction and with experience in the area of law in which your concern lies.