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Not an uncommon problem on older cars. The piston in the caliper that forces the brake pads against the rotor has a rubber boot linning on it to prevent contamination [dirt and crud] from entering the pistons port. When the boot develops a hole, accumulated dirt, sand, and moisture will cause a corrosive process that prevents the piston from retracting when the brakes are released. Consequently, the caliper piston will be forced outward when the driver applies braking power but may not retract when the brake pressure is relaxed. The resultant effect is a partialy applied brake on the rotor with the bad caliper piston liner.
When this happens the associated rotor will exceed normal operating temps and will experience warping in a very short time. Depending on a the rotor's condition and the temp it is subjected to will influence the ability of a shop to true [turn to limits]a warped rotor. Because the front brakes on a volvo carry a higher precentage of the braking effort, the front brakes often need truning before the back rotors do. Vented rotors can extend the operational life because they dissipate heat in a more efficent manner.
As a GENERAL RULE OF THUMB, always replace the pads, rotors, calipers on paired systems at the same time, I.E. front or back. This will ensure a more even braking action. Though in a pinch you can get by with just doing one side, however, be particularly aware of the problems you can ecounter with mismatched braking systems, most noticabally on slippery surfaces.
With the information you have provided, I would replace or turn the rear rotors, replace the pads with quality units, and seriously consider replacing both rear calipers with new or rebuilt units. Also, at this point I would I would flush and bleed the system with DOT 4 brake fluid. If you are somewhat mechanically inclinded, get a Bently manual to do this. There are plenty of pictures and explanations. To do the rear brakes with a helper should take about 4 to 6 hours for a novice. Pay particular attention to the brake lines and bleed screws. On older vehicles they have a nasty habit of stripping or braking off when trying to open them up. Feel free to ask more questions, as I expect you will get several different opinions on this.
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