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First question, is how did you friend pay for the part? If he paid by credit card there is an easy answer.
If friend payed in cash, I am very much afraid he is screwed. it sounds like the vendor is cash poor if not legally broke, and will be filing bankruptcy fairly soon, and if that is the case there isn't much you can do since there will be no BR estate to be reimbursed out of. Same point for legal action, there has to be something to attach or there is no point in going to court.
One other option might be to go to your state's Attorney General's Office of Consumer Fraud, they might be able to help, and he might also contact the CA office of same, they mightt be able to put enough pressure on the vendor that he would repay your friend just to get the AG out of his hair.
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