Nice of them
Good that they admitted that they sold you a piece of crap. They allow dealers to put anywhere from 30 to 38% markup on their e-bikes, so they should at least give you 1/3rd the cost of a new one back to you. If they give you a credit of more than half, that's even better. Just make sure they don't try to get you into one of their $3500 or $4000 priced ebikes, because those are all way overpriced for the value from that company. A really nice e-bike for the money, is the Blix Stockholm. You can reset the top speed limiter to get up to 25 mph, and the mid 2016 model now comes with front suspension. The bike is lightweight, and for the money in the low $2's you won't find a better, more refined e-bike. Also has the option of up to a 17.4 ah Panasonic battery. I've gone 78 miles on that puppy, and still had juice left. The ebike is 'stealth' too, and does not look like one, unless you know the black thing behind the seat pillar is for a battery for an ebike.