If the outer wrapping of the pallet/package was not damaged then your wife was correct to sign it as good condition. If upon opening the (intact) package you found the contents to be damaged then the suppliers of the package are liable. If the suppliers wish to argue and claim with the carriers who delivered it then that is their choice as they had a contract with them fir delivery. You had no contract with the carriers so don't worry about them. If you were told the engine was good and usable and it has proved to not be then you have a very good case for asking for a replacement engine at no additional cost.
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