A couple of years back I had an issue with an Ebay package through the US Postal Service. The box was shredded and torn apart, 80 percent of the contents were missing, the rest heavily damaged.:
I took it back to the Post Office and they advised that I reject delivery as I hadn't technically opened it. Of course little did I know that it ran contrary to the fine print on Ebay, that if you reject delivery you automatically lose any dispute. And since PayPal and Ebay are the same company, if you dispute with one, you waive the dispute process with the other. It wasn't clear if picking correctly in that case would have helped me.
First thing I did was contact the seller to see if there was something we could work out, there wasn't, so I went through dispute process, which I lost. All the while I was dealing with USPS on a WTF where are the rest of the contents of my package kind of basis. It was a constant run-around, people transferring me to various people in various departments all over the country, telling flat-out lies and contradicting each other. Very frustrating.
Anyway, once I exhausted all those options, despite the PayPal terms of service having some pretty harsh wording about doing chargebacks through your credit card company, I went ahead and filed a complaint with them, painstakingly detailing the entire ordeal. They credited my account the ~$400 I had lost immediately on a provisional basis, and about a month later I received confirmation that their disputes department had found in my favor.
I kind of expected my PayPal account to be terminated, but it wasn't. I would have been less comfortable going the route I did if I had linked my bank account to my PayPal account, as I've read people claiming some shady business with unauthorized withdrawals.
Bottom line, you're entitled to a refund or exchange on this one. It's not your fault, it's not your son's fault for not hawk-eyeing the random hole which may or may not have been entirely superficial. The delivery guy is more likely to have seen the hole. Did he bother to point it out? Did he suggest you reject the packaging? Did the guy who actually put the hole in the TV own up when he did it? No, he let that shit roll downhill on you.
Definitely try to resolve it with the seller, figure out if the package was insured, etc... But don't let them waste all your time and effort. If they're not being reasonable take it to the PayPal dispute process. And failing that, if you paid with credit card through PayPal, file a complaint with your credit card company, and they'll probably have your back if you have decent documentation of what happened, who you tried to resolve it with, etc.