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I think by "fall check" they mean it is an internal check* that resulted from stresses incurred during "falling" (more usually "felling") or when the tree was cut down.
*check: a split in wood that runs with the grain and perpendicular to the growth rings.
As for keeping/sending back -- If it is indeed separation of the wood fibers and not just discoloration I would be inclined to swap it out.
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