Bosch review: free replacement not honored

A Bosch Premium Plus battery was purchased in August of 2009 for $89.99, plus taxes, state battery recycling fees, and installation fees. The battery has a 8 year warranty and a 3 year free replacement warranty.
The battery died in October 2011, the car was brought to Pep Boys to confirm it was not working and under warranty. I was informed it would be over an hour before they could look at it so I left the premises. They called me shortly after I left and told me the battery had been replaced and the total was $42.62.
I brought up the fact that the battery was under its free replacement period so they broke down the bill to show me the various fees. Apparently the battery had gone up in price so I was charged for the increase in price. A free replacement with no conditions does not imply I am responsible for the increase in price. I dispute this, and the sales taxes associated.
I was charged higher than in-store advertised rates for installation - labor I did not give them consent to perform.
I dispute the charges as follows: Parts $19.49, Labor, $15.50, Other $2.79 of the $5.79 fees, and Tax of $1.84
I do not dispute the charge of $3 for the state battery handling fees.
I am entitled to a refund of $39.62
I do question the fact that they are selling a product guaranteed for 8 years, that died in less than 26 months and are burdening the state with disposal / recycling of lead and sulfuric acid of what was obviously a defective product.

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