Dead on Arrival

So I picked up my new iPhone 4 from ATT. As the ATT guy tried to activate it, he realized that the phone was DOA. He suggested I visit an apple store. On the very first day of getting a product, I drove 40 minutes to get to an apple store, and waited another 30 minutes to get some help. That's when things get a fit fishy - first, the apple guy says that he will be happy to get a "repair" going for my phone. I stopped him right there. I hadn't even used the phone yet. Repair didn't make any sense. I asked him to replace it. So, he says, that's what he meant. That they'll replace it (not sure why he couldn't simply have said that to begin with.) Anyway, he leaves with the non-working phone, and comes back a few minutes later with another phone. I still have my original box. I say to him that I'll take the new box and he can have the old one. That way, the serial on the phone will match the serial on the box. He tells me that he can't do that. His explanation was that "we recycle the boxes, and don't give the new boxes to anyone when we replace the phone." He says that's just the way thing are and that he can't do anything about it. I told him that now the serial on the box doesn't match the serial on the phone, but he says that internally, they have matched up the new serial with my phone and not to worry about it.

So, I say, fine. Show me the box you just took this new phone out of. You don't have to give it to me, just show it to me so I know it just came out of a new box. He says, nope, can't do it. That's just the way things are. I argued for about 5 minutes about how absolutely ridiculous he was sounding about not showing me the box. His voice was quivering as he argued and tried to reassure me that it was a brand new phone. But, for whatever reason, Apple prevents me from even SEEING the new box!!

I suspect that I've been given either a refurbished unit or a returned one. It was clearly not freshly taken out of a box, because there is just no other explanation for not even showing me the **** box. Now I am livid, and will push until I get a new phone in a sealed box, and hopefully it will work out of the box. Have had dozens of phones over the years. Never had one not work properly out of the box. This reeks of bad quality control. I am very disappointed by my first foray into Apple land. Did I make a mistake? Anyone with similar experience? Any suggestions about what to do about this matter, as far as contacting apple is concerned?

Thanks for reading.

AJ