I think the important thing to remember is that if you don't personally want to be involved in a mess like this than don't involve yourself. Obviously vendors don't have a choice in the matter (it isn't just SickStickz that is in this predicament), but if you aren't legally or financially involved at this point why put yourself in that position.
In addition, even if people think SickStickz or any other small vendors in this situation are making a big stink about this type of situation, just think about it from their prospective. A thousand dollars isn't a lot to a company like K2 but it is a hell of a lot of money to small vendors like SickStickz.
Oh, and by the way, good luck with your shorts kid!