IPhone :: Speaker Does Not Work At All

Today, I bought a iPhone 3GS Black from my friend for JUST $40.00! I already own a white iPhone 3GS but for $40.00 that was a steal even though it has a couple of problems. I figured I could use it as an iPod for my car since I was planning on buying a nano anyways. One problem is that the speaker does not work at all. And another problem is there is a small nick or some sort on the screen (picture below) but it does NOT appear to be on the glass, it seems to be on the actual screen behind the glass. This iPhone still has warranty until August but I doubt Apple will replace it because of the screen. I was just gonna take it because of the speaker not working but I figure they'll turn me away due to the screen and overall condition of the phone. Everything works great and there does not seem to have any water damage (I checked both sensors).