and it outputs 5.25 V, but as soon as a load is applied that needs around 300 mA, the voltage drops below 4 volts and jumps around. Consequently, the motor does not work.
Yeah, that does sound like a bad adapter. Sorry about that!
Go ahead and fill out the return form [on this page with your order number and let us know you need a replacement and we can get that taken care of for you. :-)](Return Policy - SparkFun Electronics)