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@Cranks
Retail law is long and complicated.
In short, I'm sure the shop will want to help and get you back on the road the quickest way possible, any good bike shop will look after you the best way they can. The shop may have their own policy on this already. I have always received impecable service from my LBS, it pays to be loyal.
Legally, the manufacturer states the conditions of the warranty (not us, not the shop, not your aunty) and they state if an item they produced is a failure they will repair or replace. They have the last say.
If you go in like a bull in a china shop......well, do I need to say anymore?