Don't go by brand names. Whenever possible, actually try the guitar out first. Since this isn't the first guitar you've had, you already might have a preference in how you want your guitars to sound and feel to you.
There can be good Yamaha guitars, but they are still made out of wood and so there will be individual differences in each and every guitar even if they are made in a factory.
For $700, you can buy any number of good classical guitars. If you want a traditional classical guitar.
I took a look at the model you were considering buying and it is somewhat of a hybrid. Shaped like a cutaway guitar, it is designed to feel and play more like a steel-stringed acoustic guitar, but with a warmer tone characteristic of nylon strings. It's also an acoustic-electric model which offers flexibility for different situations if you plan to use your guitar for public performances.
Still, since Guitar Center is willing to let you get your money back if you don't like the guitar, it won't hurt to try the thing out. And while you're there, pick up and play any other guitars they have on stock in the same price range and see how they compare.