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You first need to document everything you do. So note when you called and how long you were on the phone. Next call them back and tell the level 1 rep you get at first that you fill file a complaint with Better Business and the local State consumer protection agency and demand to speak to their supervisor. Get the names of everyone you talk to. If they still won't honor the warranty then contact your local State consumer protection agency and file a complaint with them. I'd also write a letter to Sears noting the unsuccessful efforts you made and include names and dates. Keep a copy of the letter and send it registered mail signature required.
I'm going to open this up to my colleagues so one of them can help. Please don't respond (even to acknowledge this post)until you get a response from us. If you respond first it will only delay your answer.