Basically I need to know the legal ramifications of a product ordered
from California to Minnesota. MN orders item, MN cancels item, CA
refunds money but CA ships item inadvertantly, CA notices shipping
discrepancy then demands product back from MN (prepaid shipping)

Need to know....
1> Legal answer to this, does MN get to keep my product because I made
a mistake and shipped out product?

2> I requested my product back, isn't MN keeping stolen property if it
isn't paid for?

3> What legal or otherwise recourse do I have to get my product back?

NEED THIS ASAP

Thanks

I'm not a lawyer, so I have to use logic, which doesn't always apply
to legal matters.

It seems to me that if the contract was cancelled (and cancellation
accepted by both parties), then CA has effectively shipped
"unsolicited merchandise" to MN. In other words, CA has sent a gift to
MN.

In this case, clearly the moral and honorable thing would be for MN to
return the item, but I doubt that CA has much legal standing to
enforce a return. :(

I, too, am not a lawyer.

I don't think "stolen merchandise" is a fair characterization here. 
However I'd explore the possibility of filing an action in small
claims court in MN, seeking the lawful return of the property to
sender.

Certainly a good lawyer could make an argument that "unsolicited
merchandise" is a gift, but in the facts given an agreement was
dissolved at some point, and the delivery of the merchandise was an
error in fulfillment, not an unsolicited gift.  Ownership of the item
was not intended to be transferred.

I would act promptly to seek relief.  I do believe that if the return
of the merchandise is not sought within a relatively brief period,
then it weakens the right of recovery.

A registered letter to the non-customer, followed by the small claims
court filing would be in order.

regards, mathtalk-ga