Most people out there don't even know about the warrantee and what it covers. The expectation that you the customer should know everything you are getting when the sales person does not even know is laughable.

IMO The fact is you were given misinformation from a dealer representative and you took it as legitimate since it came from the dealer. I don't think you can be blamed for that. It is the responsibility of any representative to either tell you they don't know and find someone who does, or research the issue and get back to you before they tell you something.
I hope they give you something for your trouble. At the very least you should ask them to fix the tranny that was in your xB that way you can try to sell it and get some of your money back.

 

Thanks for the support guys.
You sum up what I've been thinking.
I didn't think I was unreasonable.

 

I agree with MO, anyone wearing a Toyota shirt is a representative of the company. It's not as if he said he didn't know, he told you something as a matter of fact, therefore you were misled. If he wasn't sure then he should have sent you to talk to someone who was. How can you be held liable after their representative basically lied to you. You don't know their intent.

 

^x2