I've had lots of horror stories.
Messed up a 1/4" c-pro wrench, went in with my work shirt on, they told me my professional wrench wasn't covered, because professional use was considered abuse...
Broke a screwdriver tip off, they told me it wasn't warrantied, because it was obviously used to open a paint can. I'm a mechanic, not a painter, screwdriver looked brand new, no paint on it. No freaking clue how they came to this conclusion.
Broke a pair of dykes, took them in for 6 weeks, they were never on the shelf. Employee told me they were cancelled, and I would have to get the smaller, non spring loaded pair...****. Well, what can you do, right?
I'm in there next week, and there's my old style on the shelf!!

I bring in the return receipts, and the new one, and tell them I want the style I had. They tell me they can't upgrade me, I explain that it's not an upgrade, because that's what I had when they lied to me, and told me they weren't available anymore. They then tell me yes, but since I accepted the downgrade, now it would be an upgrade, and they don't do that. I only accepted it because they lied and said they didn't exist anymore!!
Dad brought in his lifetime warranty tap...he was told they wouldn't warranty it. Umm, it says lifetime warranty right on the set. Ok, but we'll only trade that out for an entire chinese-no warranty set. How in the f'k is that lifetime warranty!?! He told them to shove it, went elsewhere and bought a U.S. tap. No way he was trading in what would now be a $500 tap and die set, for a $100 chinese **** set.
Same **** with a "lifetime warranty" torque wrench...only exchange it for one with a 30 day warranty...bs.
I broke a 9/16" gearwrench (locked it up, actually). I took it in, they wouldn't exchange it because they didn't sell it to me...umm, yeah you did, it's right there on your screen. Oh, but that's a set. Yeah, and? We only warranty them if bought individually. Ok, I'll go break all of them now, and bring the entire broken set in then. Well, we can replace it just this once. yeah, sure you can.
Sears pushed me away. Snap-On is replaced, no questions asked, on the spot. I broke a Snap-On wrench older than me by 20 years, it was replaced without hesitation. Sears wouldn't replace their almost new lifetime warranty wrench.
I broke a Snap-On ratchet adapter that wasn't made with that configuration anymore. I don't blame them for that, lines change. However, they credited me the retail price of it, without hesitation. Way more than fair, right?
Remember dad's tap? He took the receipt back to sears, and asked them to cover the cost of it...seems fair, since it was a lifetime warranty that they couldn't hold up to...they refused.
Snap-On picks break, it's just accepted that it happens, and they shaft is replaced on the spot. When the sears ones broke, they read me the riot act about "abuse".
Sears quality and service has gone downhill a long ways over the years. My dad's 30 year old Craftsman sockets are still in good shape. I completely rounded mine out after 8 years.
I used to really recommend sears, not anymore, except for people starting out that just can't be buying truck stuff all at once.