Is it illegal for a merchant to do this?

Let's say you hand in an iPhone XS Max in good condition to an Apple store Genius for inspection and a warranty claim. The Apple store Genius then either calls you back or shows you in person the psychical damage and says it will not be under warranty, when the iPhone was not in that condition when you surrendered it in for repair.

I'm going to hand in my iPhone XS Max for inspection and a warranty claim but I get this feeling they may do something like this.

Then take photos of it before you hand it in

They aren't going to do something like that. Apple has some of the best customer service out there, they make billions of dollars legitimately based on that. Besides, the techs have no personal stake in how much you spend.

If it were in "good condition" there would be no reason for a warranty claim.

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