I have bought almost all of my guitars on-line (too many to list LOL!). I have only had to send two back over the many years. Usually a $60 set up solves any little problems and makes the guitar a much better player. I have bought two guitars that had some issues that had to be dealt with (I won't mention the brands). I could have sent them both back but I liked/loved them too much! So, I took them to my tech(s) and got estimates for the work. I still have and love both of these guitars. One of them had similar fret issues described above. It cost me $80 bucks to have them filed and polished. But the guy I deal with a SW gave me more than $80 off the price of the guitar. The other one had some wiring issues that cost me $100 to correct. The company credited my card for $100 when I sent them a copy of the invoice. Sometimes it's worth fixing!
I've found that to be true too. I got one shipped that was so messed up it was unplayable and a $60 setup fixed it right up.
A guitar that costs over $1k should not need a $60 setup. Taylor and Yamaha both sell much less expensive guitars that are consistently set up very well.
I will concede minor tweaks to suit preference but the situation Scott describes does not sound like that at all. The frets should be perfect out of the box for that kind of money.
If they are not, a prompt refund is in order.
I would keep looking if I were you...
Brand new, I agree. When they are used - like off reverb.com however - I think it's understandable.
I have bought all of my guitars brand new. The usual charge for a set up is $60 however many of my new guitars only cost me $25 as very little bench time was needed. But all of them benefited greatly by having them set up by very qualified techs and luthiers. I recommend a good set up. At least have your guitar looked at if you have any doubt about the way it comes out of the box, even though it's a new guitar.
I have 5 Taylors all of which benefited by a set up. 3 of them had problems that I discovered and had to have fixed by Taylor factory qualified luthiers (not my usual guys who are also very qualified) in order to not void the warranties. Taylor stands behind their products and is a great company. I still have all 5 and they are not for sale. None of them had fret problems. The guitar with the fret problems was a Takamine. As I said I love the guitar and would not send it back for a refund . It cost $1,000. The Taylors cost $1,500 to $2,000. I do agree that the fret problems Scott describes (and the one I describe) merit a refund without question, if you want to return the guitar for a refund. MF has the best return policy and I have returned one Epiphone and one Fender to them. They will send a mailing label and pay the shipping on returns and stand behind their products. SW sets up their guitars before shipping and does inspections. I have an Epiphone ES-175 that had output jack problems by the factory purchased via SW . I had my guy fix the issue for $25 bucks and still enjoy playing it. It cost $1,000 with 57 Gibson US Humbuckers and upgraded pots. It keeps up quite well against a Gibson ES-175 that cost $4,000. Brand and price is not a factor IMHO.
Anyway, just sharing a few stories that all ended quite well. When you get a guitar in your hand that you really like, don't let go of it...have fun!