I was told that I could not return a defective iphone!

I ordered an iphone from apple.com. The screen was not screwed all the way down, so i had to take it to an apple store(hour and a half of my day which is a big hassle because i work alot and go to school full time.) to get checked out and eventually replaced. I immediately put an anti-glare screen protector on it. About a week later i removed the screen protector because i didn't like the affect it had of making the blacks look grey. The only problem is that the screen protector wasn't causing the greyish blacks. The screen itself was! So i set up an appointment yesterday, and went to the store today. They agreed that the screen was defective. They didn't have any 4 gb iphones in stock however and told me i'd have to come back another day when they come in. That of course is more of my time. I told them i would return the phone and just buy an 8gb (which they had in stock). They told me i couldn't return the iphone. I only had it for 12 days and it never worked. He said it was "against policy," which is of course just a cop-out way of saying "because i said so." I find it hard to believe that Apple would disallow returns of defective products and i also question its legality. I would like to think that it is just this store (they almost made we swear never to buy an apple product once before when they damaged my laptop in for repair, refused to admit to it, and insinuated that I am a lier.
Has anyone else had this much trouble with apple? Because i am becoming fed up.
(oh and they better not try to pawn a refurb off on me. It never worked in the first place and i did not pay full price for a refurb iphone)

Apple appears to be 'cracking down' on their returns more lately. When the iPhone was first released and for about 2 months afterwards, they were taking in returns no problem, replacing defective iPhones with brand new ones in the box, etc. Now they seem to be doing everything in their power to NOT return them or replace them. Sounds a lot like an insuance company. I guess that's what happens when you put a lot of defective product out there.
If I were you Dan Pallas, I'd just go back to the store with my reciept and my iPhone and return the whole thing. How can they deny a return? They can't if it's in the 14 days. When they charge you the 10% restocking fee, pay it but let the manager know you're not buying anything else. Tell him or her that you were going to buy an 8GB phone at a higher cost, thus giving Apple more money but now no way. Remind him that good customer service is at places like Costco where you can return an item for 90 days and NO restocking fee.
I know you want an iPhone, but isn't this policy ridiculous? Show them that you think it's ridiculous.
I find it absurd that I can buy an iPod at Apple and have a 14 day return policy, replacement with a refurb and a 10% restocking fee. Yet, I can go to Costco and buy the same iPod and have a 90 day return policy, free techincal support, and NO restocking fee if I need to return it within those 90 days, as well as get a brand new non-refurbished iPod. AND that same iPod is $10 cheaper than at Apple. Guess who gets my business?

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