#1
First, I live in Northeastern United states, meaning it is colder and dryer here during winter months.  Proper humidification is necessary for both Electric and acoustic guitars.    

There is a Guitar store Center around 1 mile from my office so I stopped in to buy some strings and misc. accessories.   Since I had some time to Kill I picked up a "lower" end Ibanez (~$300) and started noodling around.  As I slid down the fret board I sliced my pointer and middle finger on sharp frets sticking well over the side of the fret board.   I'm thinking this was probably just an incidental case of bad quality control out of the factory.   I brought it to the attention of one of the employees and he said all the lower end guitars have this issue because the humidity is not properly controlled in the entire shop, just the acoustic room.   He said if it was a deal breaker, they would fix the frets.   I told him it was more than a deal breaker, I just cut the shit out of my hand on a guitar I would be embarrassed to even have on the wall!   He's like dude,  this one isn't even bad check out this one...he hands me a $125 Rogue(?).   If you slid up the fretboard you could possibly sever a finger.    I understand if you want a top quality guitar you have pay for it, but I believe it is unacceptable to put any product on the wall, not matter the price, that can cause bodily harm.   

Sorry for the rant, but  if the employee simlpy said, wow this is bad we'll take it down and get it fixed, I would have much more respect.   However, to show me a guitar that has 10 times sharper frets, just shows me these guys really don't give a shit.  

Because of this incident, I will make the longer drive to have superior service and equipment from one the locally owned music stores.
#2
From what I was told, some of these retailers keep these guitars in warehouses for months causing the wood to warp, especially on thin neck guitars.  
Don't let one douche bag kill it for you.  Good customer service is hard to find and he probably just doesn't know any better.  I mean he works at a guitar shop.  
#3
I smell a lawsuit!  But yeah this isn't acceptable at all in any way, wood moving about due to humidity/temperature changes is not unusual but that's more extreme than I've ever heard of from a guitar that's already on a shop wall. Maybe it's because I do most of my playing/buying/trying in the UK where our climate doesn't have extremes but I can count on one hand the number of guitars where this was even noticeable, let alone to the point of cutting fingers.
Cornford Hellcat
Peavey 5150
1994 Ibanez Jem 7V
#4
He was definitely a young buck, but he wasn't actually a douche bag, just didn't handle the situation very well.   If a customer brings to your attention that one of their guitars caused an open wound, you don't show the customer that it could have been a lot worse LOL.  I would have been much more pissed if I actually made money playing guitar.  I couldn't play barre chords for a few days because the cuts were deep enough to cause pain and re-open.   

To be honest, I always felt a bit guilty going to this store when there is a 20+ year, locally owned, established music center just a few miles farther away.   The staff is highly professional and not pushy.   And get this, the guitars on the wall are always in tune!  
#5
Bigbazz - Yeah, sorry to say, lawsuits are the American way...but not this American.   I guess my point to him would be, you would have a much better chance at selling a guitar, or any instrument, if it was playable right off the wall.   That means a descent fret job and somewhat in tune.  

I'll be the first to admit, I don't take the best care of my guitars.   They both currently live in an unheated room that is only heated with a wood stove.  The temperature can vary from -15 F to +80.  Albeit, they are in their cases when not being used.   I have never had any issues with the frets.  However it is a process keeping them in tune as they rise in temperature.