I have a 2004 Toyota RAV with a frozen front right caliper on 2004 Toyota RAV4

Dealer says warranty will cover the replacement of the caliper, but the brake pads are at 5mm and should be replaced and rotors turned and the cost is $260. Is this a "real" needed repair, and is the cost fair?

Asked by for the 2004 Toyota RAV4
For a dealer , that sounds pretty good.