Agree. I'd return it for an exchange.

To those anti-Walmart bike folks:
My last Walmart Huffy beach cruiser was bought roughly 1991, and has been ridden over 10,000 miles, it has not required more than the normal consumables; a pair of tires and a couple chains, and repacking the bearings once a year or so. (I include servicing the coaster brake with "repacking the bearings".)
I also replaced the seat once.

If you take care of them, they will last longer than we will.