Motorola not honoring warranty because they are "out of stock"

Hi all,

I sent in my black, metal band Moto 360 (1st gen) to Motorola over a month ago when it stopped powering on. They received it and I didn't get an update for 1 month so I called them and they said they are out of stock but they could offer me the champagne colored watch - I refused since I would've bought that color originally if it was what I wanted. Anyways, they said to wait 2 days to see if they get more in stock - I waited 11 days (I was very patient) and called today and they said they still don't have any in stock.

I told them that legally they are obliged to either refund me my purchase price for the watch or repair/replace the exact product I purchased originally. They won't budge but a supervisor is calling me tomorrow.

Any tips on what to say/laws to mention?

I feel like I should report this to the FTC since it's not my fault they are out of stock. It's their fault so if they don't have the product I sent, then I think they should just give me a Moto 360 2nd generation (all black/metal like I originally sent) or my money back... I mentioned that and they said they don't have refurbs for the 2nd generation either. When the supervisor calls, I'm going to tell them they should send me a new one then. Not sure what leeway I have though, but it's not fair that I should take a hit for their poor warranty practices.

Edit: I took some suggestions and emailed their social media contacts and got this reply. http://imgur.com/vYkxUjQ I will update on the resolution. Thanks for all the tips.