I knew it's a BS! The guy wasn't a Service Advisor but a head technician in the service department. That's what bugs me the most. The guy must've known that he's BS'ing (right?right?), but why would he lie about it? So he doesn't have to fix what's covered under warranty? My car's over at the dealership at the moment and I'm really worried what they might do to it.
I didn't know there was a center console light that tells if the airbag's activated. I'll check when I get the vehicle.
Thanks.