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refund on times subscription offer

Hi
I recently signed up to a offer from the Times involving a nexus 7 & a 18month digital subscription.
There was 2 offers in place, the first offered a nexus 7 for £50 when you take out a 18 month subscription for £17.99 a month.
The second offer was a nexus 7 & a 18 month subscription for a one off payment of £299.
I purchased the second option & recieved my nexus 7 today after a 2 week wait. On opening the nexus 7, it wont turn on (this apparantly being a common problem ) . I phoned the times to cancel & was informed that the 7 day cooling off period was over & the best they can do is replace the nexus 7 or give me a £50 refund for the nexus 7.
I argued that i purchased the subscription & nexus 7 together as a inclusive package & both should be subject to the distance trading laws giving me 7 days to cancel after reciept of goods,
but they still refuse to refund the suscription.

Can anybody advise me if i am wright in thinking, as i bought them together as a package for a one off payment i shoud be able to cancel both together up to 7 days after i recievd the nexus 7 .

thanks Tim

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