recieved item after getting money back?

I ordered from a shady business "nomorerack," I immediately tried to cancel order. They told me I could not, eventually I cancelled the credit card used and went through paypal to get money back, the paypal claim was closed in my favor. But NOW I just received the item!! I did not even know they were sending it bc I had "blocked" them and never received a tracking number. When I opened it, I saw that the items are not as described anyway, they are way too small. But what are my legal obligations now?