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Faulty reconditioned engine

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I have purchased a reconditioned engine online from an engineering company, it took three weeks to arrive after being told seven days. When my garage of choice received the engine it had broken off bolt where the water pump attaches. I had the broken bolt removed professionally at a cost of £160.
After swapping all the parts and installation the so called reconditioned engine was started and found to have a significant oil leak from the main rear. It was very noisy with poor oil pressure. The engineering company want me to return it to fix, but are refusing to pay labour charges. Surly as they have supplied a faulty engine the are liable. Any advise before I go to trading standards tomorrow

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