Don´t stone me to death now ppl, but dealers should replace the watch.
Period.
Mean, look at their profits on these reps. They´re much higher than those of regular (gen) watch dealers/shops.
Dealers do have (or should i say, should have?) a direct connection to the rep factories, they are the link between the customer and the maker (pretty much like in the 'real world'). So, i dont wanna dream of warranty etc., but replacing a broken watch should be their hightes priority (customer care -> returning customers).
Illegal goods or not. The principle is just the same.