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So, in short, they were late?
the difficulty with this is that I'm sure I'm getting the full story and it depends on their view of this.
If an item doesn't fit the description then you are entitled to reject it.
But I can see immediately they are disputing that.
And if their account is accepted then you cant cancel.
The sums don't make any sense either.
If you find out their position I could offer more.