The warranty statements are different up here in Canada. There are some vague statements but looking through it I get an impression not much is covered under warranty.
In large scale manufacturing, things happen and defects can occur. Warranty is there to cover those unfortunate situations. Quality assurance is there so that it limits the defects from being delivered to the customers in the first place.
I feel that Giant is lacking on both. Along with offering the paid service for hub repacking, I was told that the hubs need to be repacked every 100-200Kms.
(no way I'm going to follow that schedule) This is why they didn't consider this a warranty claim in the first place. From their eyes, this is a normal wear and tear since I've had the bike for almost 2 months now.
If they had asked me to prove that the hubs were in this condition when the bike was delivered, I would not have the answer. Next time I purchase a new bike from someone, I now know a few things that I should check before taking the delivery.