Am I required to give a refund if my sold eBay item was a stolen item?

I sold an iPhone 4 on eBay recently for $160 after light use. On my listing I posted used condition and "no returns accepted". Comes to find out that the buyer tries to get it activated and is told it was a stolen phone, which I had no idea of since it was given to me as a gift.

Do I legally have to give the buyer a refund?

Even though your post said no refunds accepted, I think you have to give a refund. The phone was stolen even though you didn't put that down. It wasn't the buyers fault that the phone was stolen so he/she has the right to a refund

You probably have too. Also it would be a good idea to contact the person who bought you that phone, and ask for an explanation. A strange thing is that if you have activated it before, why didn't it say that it was stolen she you used it? Weird… Well, I think that you should refund them, and get the phone back. Then talk to that person that gave you that phone.

No, not at all, until the judge orders restitution as part of your conviction for selling a stolen item. Your claim that it was a gift will not fly with a judge. You'll be lucky if you avoid jail.

Or you could just pay the guy back and hope he doesn't report it.

"no returns accepted"
This really doesn't mean anything, ever.eBay is consumer protected and you are only a seller.

I seriously doubt you are legally at fault, as in you would go to jail, but but if someone had evidence that the stolen phone was his or hers, you'd have to give it back. It's possible you could go to jail, but again, I don't think it's likely.

As far as the eBay buyer, yes, you would have to give a refund since the item was "not as described" (stolen, and it doesn't matter whether or not you knew). Either you give the buyer a refund, or they can make a claim and eBay will just take the funds from your PayPal account.