What should I do with my iPhone?

I’m Vietnamese. My father bought me an iPhone 5s in Hong Kong on 5th, November, 2013. However, on 5th, May, 2014, my iPhone went from working perfectly fine to "searching..." for a signal despite being in an area with good coverage. I tried to turn turn on airplane mode then turn off again, switching off iPhone and switching on again, and also Reset Network Settings. However, those are can't fix my iPhone. I removed the SIM Card and put in another iPhone, I worked perfectly. I connected iPhone with iTunes to update 7.1.1 but it did not success. Finally, I decided (after creating a full backup) to put the phone into recover mode and try to restore it that way. Not only, did I get an “unknown error (1)", I attempted that many times and now my phone is stuck in recovery mode. I have sent it back Hong Kong to repair because I’m still under warranty (I asked my father’s friend help me to send, because of my studying so I could not directly come the store). From that day until today (25th, June, 2014), he called them many times, but they always said:” We will check and if impossible to repair, we will switch it for a new one”. And today, when he calls them again, they said that my iPhone cannot be replaced a new one because it has been opened????????? I am totally sure that my iPhone hadn’t been opened yet.
I had 2 questions: the first is why didn’t they check my iPhone immediately after receiving it from my father’s friends?; and the second is that after we send my iPhone for service, I will receive a replacement or your repaired iPhone in three to five business days; but in fact, they reported it to us after nearly two months??? Who can ensure that they did not open my iPhone?
What should I do?

First you aren't talking to Apple here. This is just a user forum hosted by Apple. We are all just users here.
Suggestion: Backup and then Restore your iPhone as new using iTunes on your computer.
Test battery usage to see if it is normal. If not, contact Apple support; you may have a hardware problem.
If battery usage is normal then restore your iPhone from the backup and continue to monitor battery usage.

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