The Apple employee wouldn't have gone to jail. Might lose his job. But, I would have not left the store. I would have demanded that he get his supervisor and demand that Apple give me a new iPhone 4.I got a conscious. I wouldnt be able to live knowing I put someone in jail because they dropped a phone. Again.. lettuce be reality, would you rather just pay the money than knowingly jail someone...
Besides, the police will not get involved in this. They will you tell you it's a civil dispute and your only course of action is to sue Apple in a small claims court.