First, we do not allow imitations to be sold. But like your so called "caveat emptor", we wouldn't know because you didn't specified it out, else we would have suspended your sales!
Then by playing the phone 1 hour doesn't necessary meant the guy knew the phone is imitation.
Same like your analogy on buying fake windows laptop. One doesn't know by just playing with it. It's only at the point he/she needs to update then only the problem comes.

So the point is you never told the truth and when someone found out, you say it's his/her fault. Every consumer had their own way of dealing things. You can "claim" you don't mind because you have the means to resolve it because you can reformat and reinstall genuine software. But now, coming back to this; how do you "restore" it to be original Nokia

And the thing that you complaint in front desk. It's void when someone has a dispute against you. He finally got your attention right? Else would you have responded?

And if you're so rule minded, then can Nokia prosecute you for selling imitation Nokia?! If you abide by the rules, then can we now ban you for violating the rules?!

So which rules are we talking about now?! Malaysian Law? I bet there's a line in there stating no piracy. Consumer law also states no "misleading" advert. Which also all you clearly violated. So now which "rules" should we apprehend now?! YOU TELL ME!