Most of your settings are ideal for the type of shooting you're doing. For portraits at or near wide open on the 50mm f/1.4, I tend to favour AF-C. Others may disagree, but with such a limited depth of field, the slightest movement of your subject after focus has locked with AF-S can produce a soft image.
Your AF may indeed need some fine tuning, but until you ascertain exactly what is required with a properly controlled focus test, returning the lens for another may not improve matters. The point that I tried to make earlier and that Stan reinforced is that the banana was a poor AF test target. It won't enable you to figure out how far your AF fine tune needs to be adjusted, only a proper focus test will do that.
I'd try a properly conducted focus test first - if you can correct the issue within the range of adjustment in the AF fine tune, then I'd do that and accept that your particular lens needs AF tuning with your D7000. If you can't, then there are two options - swap the lens and try again, or send the body and lens to Nikon to check the overall calibration.
Many people never need to worry about AF calibration because there either isn't an issue or the available DOF with kit/consumer grade f/3.5, f/4.5, f/5.6 lenses gives enough depth of field to not notice any misfocus.
When you go up to pro-grade ultra-fast lenses with wafer thin depth of field, AF accuracy is critical and fine-tuning is often required to get the best results. That's why the more serious bodies have the facility to fine-tune.