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Utimatley it may have been a bad decision to use the big box store, but I have more confidence that they will get the problem resolved than if this was a mom and pop organization that could not afford to take a loss this big.
Customer hires BB store.
BB store hires Install Co.
Install Co. Hires Installer Sub.
Customer pays $3.50 psf for labor.
Installer gets $1.50 of that. The other $2 is divied up between BB and Install Co. On a 500sf install, customer shells out $1,750 for labor, but installer only gets $750 of that, out of which they must pay for their own insurance, taxes, and misc. materials. Meanwhile, the other $1,000 that the customer thinks is going to pay a good installer for their hard work and skill is going to the BB store and Install Co instead. (Actual numbers from my area.)
When a customer has a complaint, they contact BB store. BB store in turn contacts install Co. Install Co then contacts the installer. (That right there ends up in alot of phone tag being played and third-party info being passed around.
In this situation, the installer has no choice in what decisions are made to appease the customer. If the BB store - who has the direct contract with the end customer - decides to say, replace the floor in your case, here's what happens.
It goes thru the Install Co, who places the full burden on the installer. Installer is told they _have_ to provide the free labor of ripping out your glued down floor and installing a new one, and the installer eats the cost of the material as well. If the installer does not want to do the repair, or if the customer doesn't want that installer back, the installer is also backcharged for the labor cost of the Install Co sending out a different installer to do the ripout/replacement. In the end, the orignal installer who only made peanuts on the deal to begin with is on the hook for thousands of dollars, while the BB store and Install CO lose nothing, even though it is their final decision on how to rectify the situation with the customer.
I'm sure you can see how you can end up with a very angry installer in this situation, especially if he believes he did nothing wrong. (And often, he hasn't. )
Anyway, none of that helps with your problem, but I wanted you to understand that it is not going to be the BB store "who can afford to take the big loss" taking the loss here, it will be the installer, the little guy who, as I said, made the least on the deal to begin with.
Many people go thru BB stores for this very reason, thinking they have the deep pockets, not understanding that it all gets passed back to the installer when the dust settles.
In your case it's not clear yet who is actually to blame, but I would bet the ranch that even if the Manufacturer agrees it was a defective batch, the original installer is going to lose big here while the BB loses nothing.