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Hi,
I think your best bet is to get the "Bentley Volvo 240 service manual". Many used or new copies are available on EBay or Amazon books.
It's the best of the DIY manuals and will serve you well at a reasonable price.
I looked for your immediate problem and it's all there. Page 880-5. I could quote you the instructions on removing the airbag, but there's some safety concerns and it would be better for you to have the manual on hand when doing the work.
The horn is pretty much self explanatory once you've removed the bag.
If I had to guess, I'd say the clear plastic insulators might be crumbling on the small wiring harness allowing the contacts to come loose.
Post back. Advice here is free and it's worth every penny. Congratulations on your purchase, but I've never heard rust free and Vermont used in the same sentence before. I hope you looked underneath it.
Peter
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