I've brought my Kobo to a Chapters store three times and received a new one promptly each time. They even upgraded me free to the wifi version.
Kobo History:
Original white Kobo, early May 2010. In August, the SD card reader on the device wasn't working properly, Capters replaced it with a black Kobo. In early December, the center portion of screen would not refresh, Chapters replaced with wifi Kobo - Yay! January a thin row about one pixel wide from top to bottom would not refresh, Chapters replaced it right away. VERY HAPPY with Chapters
