We all know the company could have brought up a ton of charges if they didn't like him abusing warranty. I think as a kid, he was smart to agree and walk away with the money he made so far, rather than risk a costly legal battle.

Of course it was smarter. But that does not make Apple actions "refreshing".

But was he abusing warranty? They're transferrable.

I haven't owned an iDevice in some time so I'm not sure about the fine print (or even the bold print for that matter) but if the warranty terms do not explicitly prohibit or limit the number times a person can transfer a warranty or return a still in warranty device, then I don't see how they can bring a ton of charges with out looking like total douches. The proper course of action would be to issue an amendment to the warranty terms to change the policy. Then they have something to point to. But just having some random "nice uncle" lawyer make a call and intimidate the kid into submission is a pretty douchey thing to do.

Well usually I'd expect some sort of limit to be buried in some legal document; it sounds like they called to scare him because somebody never wrote that in.

Oh I didn't consider this possibility at all (just blindly assumed that this sort of thing would be covered in the fine print).