Hmmm Now that I have calmed down a little from the seriously angry state I was in earlier (LOL) I am wondering whether I offer him a refund of say $20 for the tray as it could be resold by itself.  The tea set is useless with 2 out of 3 pieces broken, but maybe a partial refund may placate him. 

That way I can offer him the item back at his postage cost or a partial refund of $20 for the unbroken tray.

What do you guys think?