IPhone 4 (bought in December) power button is stuck. Apple won't replace it. Why?

Well that's exactly it.
I have an iPhone 4 that was purchased in December of 2011. I took the phone to the Apple Store to get it looked at, and they won't replace it for free. They are asking for $150 for the entire phone to be replaced, which doesn't make any sense.
The phone doesn't have any type of physical damage, it hasn't been dropped nor hitten. What can I do? If this is how Apple is going to treat their customers, I would rather take my business elsewhere. I've purchased multiple Apple products, this being my fourth iPhone and I've never had a problem before.
Any suggestions?
Thank you,
Ditoh1

Go back to the Apple Store and ask why?

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