It is very likely, and hopefully that they loaded a demo program to test the remote out before sending it back. Do you have the serial number for the unit? My distributor notes them on the invoices, so you might be able to go back and check to see if it is the same one you sent in.

I haven't had any buttons that pealed off, but have had some the seemed to rub off, mostly on the edges of the buttons. Had this happen on several remotes, but only after a lot of use. Have had same issue with URC and other remotes.