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I guess the fact that all of the rusted metal had been blasted away might make this technically "rust-free". However, it is really poor to advertise it as such. To make that fender usable you will need to weld in some metal. Not the end of the world perhaps, but certainly not what was advertised it would seem. Sounds like some pretty good advice here on how to dispute this though. Best of luck in getting a fair settlement.
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