Hey Tony! Cool idea!
We could all get together and buy a load of Gnatrol or Bt and simply have it sent to "the nursery in question"!
Then perhaps THEY can just apply it to their bug infested plants before packing them in their little "Easter baskets" to ship them out!
It's a win-win situation for everyone!
Seriously, I think posting one's "experience", especially with pictures, is one of the best things to do, as it helps other growers know what they may need to watch out for. One of the reasons this and other forums are here, is to help growers communicate with one another. And whether it is how to deal with fungus, fertilizing, insect infestation or any other "Black Plague" we may encounter, we owe it to ourselves to communicate factually and accurately.
I haven't had the "bug" problems as obvious as this from a vendor (and actual pictures of what was found would have been valuable), but in the future I will definitely check my plants even more carefully, and even un-pot them if it is questionable, clean off the plant, apply something perhaps and re-pot them back up. I have already learned to quarantine my plants by hearing about others experiences, and at this point it is outright foolish not to. A vendor's liability is limited to plant replacement, end even that requires valid proof now-a-days. Some vendors concern for $$$ and their own interests is worse than others, and it has always been that way and always will. But at least now we are able to communicate with others worldwide, and compare notes and ideas on how to best deal with the situation.
It has been long known here that certain vendors have sub-standard conditions/plants, and yet they are still in business. It is up to each of us to determine how we choose to deal with the situation. (Even if one bad vendor went out of business, another would take its place.)
I myself look for plants from vendors I trust first, and then I may eventually check "less reputable" vendors for price and availability. If price is dramatically cheaper or if they have something to offer that others do not, only then do I consider ordering from them. The thing that helps the most for me, is when people
accurately report on their individual experiences (save the hype, bo-hoo and over-reacting). Whether fertilizing, growing or simply buying plants, the more we share our experiences, the better we can weigh out our own situation and any potential risks!
For now, thanks Chris for sharing, nice pics.... a couple of the larvae themselves would have been pertinent, and actually driven the point home! I would have taken pics of the bugs, and sent them to the company and requested a replacement WITHOUT return of the plant UNLESS THEY PAY FOR RETURN SHIPMENT PLUS HANDLING! If they refused I would simply inform them that I was going to post the pics along with the details on various forums, and also notify the better business bureau. (I don't know if you need a permit to send noxious bugs thru the mail, but there may be some action that could be taken there.) Personally, in your position now, I would live and learn... and move on.
Good Luck!
PS:As you yourself already brought up, there might be some people who are now going to avoid any future trades with you! I myself don't see this a big problem, as I have learned to check my plants, quarantine, and deal with the unexpected. It is experiences like this that new growers need, in order to become seasoned "professionals". Either learn from others (if you can figure out ahead of time, who really knows what they are talking about, and who is an idiot!), or learn from your own experiences.