An interesting circumstance took place in the 1990's in the form of the CITES treaty. Basically banning the export of Elephant Ivory.
What this did was decrease the demand for Elephant Ivory and increased the price for fossil Walrus, Mastodon and Mammoth.
Three reasons (and the third one is most germane to this discussion).
1) Elephant Ivory went up in price (even though there was TONS of legal Elephant Ivory already in the US).
2) Elephant Ivory had a nasty habit...it cracked. This of course to many collectors left the knife completely disfigured and nothing could be done about his grotesque check in the Ivory.
3) Fossil (Technically Mineralized Ivory) Ivory had cracks..which of course where the chemicals settled and gave the Ivory some of the great greens and blues! So this Ivory was less expensive and the cracks were tolerated...sometimes even encouraged!
However, cracks are cracks and sometimes, well they crack leaving little pieces or in some cases the scales explode.
Dealers are not makers...as such they have no ability to fix or repair anything.
Almost all will tell you (as will the makers) that they do not guarantee natural handle material from shrinkage (which is what creates the cracks).
Is there anything the dealer could have done in this case? No. You paid your money and took your chances with shipping the Ivory.
Could he have given the customer right to first refusal when the knife was repaired. Legit question, if it was me I would have said yes.
That being said, I suspect there is more to this than is being relayed. Either an issue with vulnerability of the natural handle material or perhaps the maker wanting to be paid for the repair...who knows???
The dealer offering you a full refund is being professional. If the damage was done during shipping that is what insurance is for. However, most overseas customers ask for a "lowered" value to avoid paying import fees. I don't know if this was the case here. If not, I would file a complaint with the shipper and use some of the insurance money to get it fixed or at least be reimbursed for shipping.
This sounds like a case of "Nature" taking its course with regards to the piece of Ivory chipping off. Question do you know if it was stabilized? Or at least having a good coat of super glue??
Frazer, you could always order one directly from the maker.
WWG