Its faulty for sure, it happens to the best of makers.
I have had knives chip out like that and I have had (it was a hatchet by a well respected maker) fold like butter.
One instance of damage that is pure accidental and perhaps an act of god so to speak is edge/bevel miss alignment. This is most likely caused by imperfections in the wood like a knot that has an extreme hardness or tougher section that causes some of the edge to follow the wood grain and become bent to the side slightly.
I have had this happen on a large Busse and a Randall 6"
The actual cutting edge is not damaged in this instance but the blade looks like it has a kink or bend on the lowest half inch. The only problem comes later when attempting to sharpen a blade with this slight edge kink.
Ben - this is kinda an answer I was looking for. How can you, me, or anyone else determine the blade is faulty by a photograph?
The fact the guy took a light weight tall bevel skinning knife and hit the knot of the branch coming out of the tree 15 times couldn't create that type of failure in a "non faulty" blade?
This is kinda what concerned me when I read this elsewhere, is that 75% of the respondents completely discounted what the owner used the knife for, 100% contrary to what RMK states in their catalog.
No one took into account that it was a lightweight skinning knife.
All makers can let a bad one slip out the door, but are you gonna take your Prius 4 wheeling?