ASUS Computer International Asus Customer Service Warranty Issue Defective products Screen lift or crack issue fremont, California

On 7/14/2012 I Purchased their Nexus 7 from a local retailer. The Product came with a manufacturer defect I knew nothing about until my own product broke. I did an online search and found several cases of people complaining about the lifted screen or the screen cracking for no reason. Apparently a lot of these tablet are being sold with the left side of the screen lifted from the case. It is such a slight lift that you do not notice it at first. This lift compromised the structural integrity of the product. I used the product, walked to another room and when I went to use the product I notice the crack originating from where one of my fingers had been placed. I contacted them and set up a (RMA) case, and shipped my product to them. I sent in several pictures of similar cracks and complaints of the lifted screen issues I found online. I wanted to provide them with evidence about this manufacturer defect.  On August 27, 2012 I receive an e-mail from them stating that they were sorry for the delay, and that I only had 5 days to submit payment because it was considered a (CID) Customer induced damage.  If I do not pay before 8/30/2012, they will ship my product back in its current state. This does not give me time to escalate my complaint with the company. I sent them a notice of claim, explaining that I will file a petition with the small claim courts if my issue could not be resolved. I have yet to receive anything back from them, no contact info, no email, no phone call.

I would like them to repair my defective product under the 1 year warranty.   
They need to stop selling defective products and provide proper support. Especially when they make products for another company i.e, Google Inc.