Well, if you can live with lying to someone's face about something and being dishonest. . .
I have had to deal with this kind of thing before - I went to the store with my receipt and they weren't going to help me.
I stayed calm and polite but told them that I would like a replacement product or a credit note for the store. I basically wasn't going to leave until they did something for me.
The key is to be polite but firm.
I'm closing this thread now as points have been made on all sides.
I hope you can resolve the issue with Sears.