Well that's rather stupid. It's terrible that they would do this to keep their self induced superior mindset.
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They're not the only company with that policy. I worked for Aaron Brothers, this custom framing and art supply store chain in CA and we had to break any otherwise damaged or defective frames. I found it kind of sad and messed up, but there were always "scavengers" just waiting by the dumpsters to see if we missed anything.