I've been had both ways by PayPal...
A buyer claimed that he didn't receive the product(even though the person that signed for it had the same last name as he did...but at a different address - the purchaser had called UPS with a tracking number and had it diverted to a different address), PayPal's buyer protection wouldn't apply - because it didn't go to the confirmed address. PayPal wouldn't even listen to me after I told them it was a rifle barrel(they actually were fairly helpful until they asked what the product was)...., they pulled up the UPS tracking number, saw where it was delivered, and that it wasn't their address...end of story. No matter that I had a copy of the UPS label where I shipped it.
Then, I purchased a Redfield Olympic sight from a fellow off another websites equipment exchange. It never showed up, and the guy wouldn't return my emails. So, I went to PayPal about 20 days later, gave them the information and forwarded the emails and the original selling post. They said the product was against their code of conduct or some line of hooey, wouldn't investigate and wouldn't return the money either......