FF Tire replaced serpentine belt, it broke within warranty, $80 job now $1399 on 1997 Ford Contour

Took to FF Tire to see if they could find out why it was leaking transmission fluid and to check for any other issues before long drive. Also had just bought the car with only about 42000 miles on it. They couldn't find the leak but suggested I change the belt. Now, this was the second mechanic I had brought it to for review and to look for where the fluid may be leaking from. Both places said it was seeping fluid.The belt just broke and it is under 12,000 miles 3-4 months later which is under their warranty terms. They replaced the belt for free, but now it has needs a gasket replacement along with the pump and other things that will cost 1399. Initially the garage offered me $150 off for the inconvenience. I feel that their insurance should cover them fixing the car for free as the belt was likely defective, or bad product. They then said they would come down to $800 to fix the damage caused by the 'new' belt breaking. I feel they should cover all of it. Legally, who is responsible? If they are not responsible, and they can't recover the loss for repairing the damage caused by the belt from the belt's manufacturer, can't the manufacturer and them have a deal worked out with faulty product so that cars break more often and turn their $80 jobs into $1399?thanks for any advice.

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