My screen is cracked on a brand new I pad, what now?????

Question

It was a gift for Xmas, I went to the apple store & they offered me an exchange for 299.00
I've had I less than 90 days,

Answer 1

Apple's Limited Warranty http://www.apple.com/legal/warranty/ for iPad excludes coverage for damage resulting from accident, disassembly, unauthorized service and unauthorized modifications. 
Out-of-Warranty Service
     If you own an iPad that is ineligible for warranty service but is eligible for Out-of-Warranty (OOW) Service, Apple will replace (Apple doesn't repair) your iPad with an iPad that is new or equivalent to new in both performance and reliability for the Out-of-Warranty Service fee listed below. (The replacement will most likely be a refurbished iPad in a brown box, however, it has a new screen, back and battery.)   
iPad model
Out-of-Warranty Service Fee
iPad mini
$219
iPad 3rd, 4th generation
$299
iPad 2, iPad
$249
A $6.95 shipping fee will be added if service is arranged through Apple and requires shipping. All fees are in US dollars and are subject to local tax.
Certain damage is ineligible for out-of-warranty service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications. However, an iPad that has failed due to contact with liquid may be eligible for out-of-warranty service. See http://support.apple.com/kb/index?page=servicefaq&geo=United_States&product=ipad
Make a Genius Bar Reservation
http://www.apple.com/retail/geniusbar/
You may can get the iPad repaired at 3rd party repair sources for less $, however, any remaining Apple warranty will be voided.
iPad Repair & Screen Replacement Services
http://www.ifixyouri.com/16-ipad-repairs
RepairZoom iPad Repair
http://www.repairzoom.com/ipad-repair.html
Mission Repair
http://www.missionrepair.com/Apple_iPad_Repair_Services_s/431.htm
iGadgetResQ
http://www.igadgetresq.com/ipad-repair/
 Cheers, Tom