Sorry to hear about that. It seems the quality control at Pflueger needs some improvement. Two weeks ago I bought a Trion GX and returned it because the retrieve was very stiff. You know how you can spin the handle when there's no line on the reel? And the handle will turn 4-5 times just from it's own momentum? Well, this reel wouldn't even spin one complete turn.
The reverse lock is just an on/off lever that engages a stop-gear. If you open yours up you'll probably find it's either snapped broken or just loose. Did the reel come with a schematic of parts? If the part is broken then Pflueger should just send you a new part (the part costs them less than a penny).
BTW, the retailer should have a record of your purchase. Get a new receipt from them.
"I care not for a man's religion unless his dog and cat are the better for it." -- Abraham Lincoln