I think sometimes what you get is just the luck of the draw. There are so many variables involved with a handmade item like this, and I think the long trip to Denmark might have had something to do with it. I guess I have been super lucky, because other than a couple of small cracks in the horn handles that haven't enlarged, and one weak frog, everything has been great. I thought about only ordering wood handles, but some of the knives just cry out for horn. Usually, but not always, I ask for the smaller lighter blades in horn and the big choppers in wood, figuring that wood would hold up better to a real pounding.
The only minor problems I have had came in the last shipment of 2 khuks I ordered. The 16.5" WWII had about 1/2 inch of rust right at the tip similar to what was shown in the posted pic above. 20 seconds on the buffer with some Emery compound and it was gone.
The other item was a loose butt cap on a 21" Gelbu Special. It was pretty obvious that the horn had just shrunk at the butt cap. I took Yvsa's advice and tried to carefully scribe a line at the cap with a triangular file, and then filled it all around with JB Quik. The hardest part was not being sloppy and getting the putty on the handle. I managed to get it smoothed in fairly well with some slopover, and the next morning it was all rock solid. I blended the brass into the horn with a file, and now plan on buffing it out. I figure I can get most of the extra hardened putty off with the buffer. Trial and error.
I can see where our friend would be upset, but were it me I would gladly take the offerered discount and fix them up and consider myself to have gotten a hell of a deal on blems. I would probably polish out the blade and use some good athletic grip tape on the handle, and you would have a great chopper at half-price, and you wouldn't have to worry about at all about the handle banging around. I can't imagine in a hard service environment that these things are going to stay very pretty for long, but that's just me and I haven't been in the military, only outdoors for extended period where things do get the worst of it...
Regards,
-Norm