When you do a hard reset it can sometimes take 10 or 15 minutes to re-install the software.
Sorry OP, but your original post looked incomplete, so am not quite sure what you were going to add.
But like the others say, return it for an exchange, unless you bought it off e-bay or Amazon. That might take awhile. Or if it's a non-returnable item.
In the chance somebody did indeed own it, and tried "modding it", you can, with pwr off, hold vol- and press and hold PWR. After several seconds, you may see some text in the upper right corner, then release both buttons. This should boot into a custom recovery menu. If it does, then indeed it is a pre-owned device that somebody tried installing custom software on.
I have a Acer a500 and game froze up so I shut it off and turned back on and now it's staying on the Acer screen or Android screen, tried recovery mode but it gives me Android man with red caution symbol, what can I do. Plz email me at Dgoodale88@Yahoo.com thanx