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First and foremost: scratches unacceptable. But that's a totally separate issue from the main one: lack of transparency.
In this case, I think the lack of transparency was more about uninformed employees than shadiness. There's a known issue with 32xx movements, where they are unable to maintain amplitude, which eventually impacts accuracy (though not right away).
A reseller like Bob's, offering its own warranty, has every reason to be cautious as it will be on the hook for any problems occurring during that period.
However, transparency could have been improved substantially with:
1. A list of tests that any watch must pass prior to closing a deal agreed upon in principle. Timekeeping, amplitude, etc.
2. Employees better informed about possible reasons for rejecting a watch or offering a lower price.
3. Better communication between employees - mostly so that the first communication could have spelled out the issue.
4. Recommendations to sellers to have timekeeping and amplitude checked by watchmaker, seek warranty service if applicable, etc. in order to receive the highest offer from them.
So, OP has every right to be upset, but I think this can be a teachable moment for the reseller, rather than a caution as to its business ethics.
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