Super silly question about iPhone replacement

[mymacrumorse]

I got the iPhone 3GS on the launch day and recently my wifi stopped working (Which seems to be a know issue in some phones and Apple usually replaces those phones) when I took it to the apple store I was informed that my liquid indicator has been triggered in the bottom one. I was told that my warranty has been void because of that.
I never had any liquid contact on my phone....
Anyways, I have couple of questions is there a way for me to get my warranty by requesting them to check the other indicators and proving that liquid indicator was triggered faulty... If not my biggest question is if I pay 200$ dollars for a replacement phone WILL I HAVE TO TURN IN MY CURRENT PHONE?
The replacement says that I will have to return this phone but I'm paying for it so that makes me think that I can get to keep the old phone too...

Can someone with experience clear me up on this...

Thanks for you help!!!

 

[stridemat]

Probably not, Apple policy is if the any of the water indicators have been triggered then it voids the warranty. You may get a nice Genius, but chances will be slim.

Regarding the replacement, then yes you have to 'turn in' your old phone. They then can sell it again once it has been fixed.