Defective iphone, but cant get a DoA, Help please

Hello, i bought 2 3gs 32gb iphones the other day, one for me, and one for my gf. Anyway, when we got back home, we noticed that her iphone's "O" button, and that side of the screen was very un-responcive. We called the Telus dealership that we were just at instantly, but it was late, and he said we should come in tomorow and he would see what he could do.
We go in the next day and they see that the "O" button works about 10% of the time, and they say "We cannot DoA (Dead on Arrival) this, because the button actually works, it just doesnt work all that well."
Well, in my eyes, if you spend $1000 on a product, you expect it to work the very same day, wouldnt you?
Anyway, the telus dealership ended up calling apple to see if they could or could not DoA it, and the apple person said that if it works AT ALL, then no, you cannot DoA it. The apple rep told us to call back later, schedual a appointment at a apple dealer (which is about a 2hrs drive for me) and let them take a look at the phone first hand to see if they should DoA it or not.
I dont really feel like driving all that way just for them to be like no, there is nothing we can do.
What do you guys suggest i do?

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did you pay by card or cash? if you paid by card i suggest you call your card company & see what they can do for you. tell them you bought the phone & its defective & the dealer wont repair it or take it back. you may have a case to file a charge back & get your money back. another alternative is go to the apple people they're usually cool and will help you out.