Can items which were purchased on-lien from Performance Bicycle and shipped to one's house be returned to a local Performance retail store?

yes

I assume if it is shipped to the store, you can return it to the store w/o penalty?

You could probably even return a bike bought at another shop. Their return policy is insane.

I worked there a couple years ago and I'll never forget..... some guy brought in some wheels that looked like they had been through a war. This guy rode them to death for 3 years. He finally broke a spoke on them and got a full refund. Even the brake surface was starting to "bowl."

Only if you first have the "lien" removed and clear title restored!

Yeah, my typing accuracy takes a nosedive after midnight!