Six months ago I had 1,050 sq. feet of engineered hardwood flooring installed. The company that did this project installed a project of similar size for me about eight years ago and I had no issues.
The wood was installed in a new constructed home and I was busy moving but after about two weeks I noticed lines and cracks in board, face checking. The number of bad board without moving my area rugs and moving large pieces of furniture is 70 boards and there are bad board in every room. The sales person called me and asked if I would accept a monetary settlement of something far less than the $11,000 that I paid them. I demanded that they send out a certified NWFA floor inspector because I have pictures of the floors the day they were installed and I felt they installed bad wood. The inspector said it had nothing to do with my environment. His opinion is that it is a milling issue.
Just last week the owner of the firm called to admit to me that they knowingly installed bad wood. He is supposedly going to call me next week with some type of settlement.
My question is, shouldn't they bear the cost to correct this situation to include tear out and replacement.
Thanks so much for responding.

That would be quite a deal!

If I understand your comment, it is my responsibility to order wood (because there was no left over wood), and then pay someone to ripe out the bad boards and install new boards. If that is what you mean, then flooring companies have no liability for their work product. If that is the case, then I consider that quite a deal.

The contractor is responsible for the last grading before installation. If the wood has been installed and is deemed defective then the contractor is responsible for removal and replacement with a wood that is not defective. If the owner contracted to supply enough wood, then buying more wood that is not defective would be on the owner. If the contractor is supplying the wood per contract, then that person should deal with the supplier or manufacturer to get wood that is not defective to replace the defective planks, after they have been removed.
A contractor is responsible for good workmanship, which includes not installing defective wood. He should know better. The good deal will include replacing the defective wood and if he is responsible for supplying the wood, then he is on the hook for the wood.