I only left the room for a minute or two, and I heard something hit the floor. The cat had pushed my iPad 2 off the counter and on to the hard tile floor. The case was unfortunately folded behind the iPad. My black 3G 64gb iPad screen was shattered.
I made a quick appointment at the Apple Store where I've bought both of my iPads. First they said they would replace it for $400. I told them I would check a different Apple Store, they said let us check something. The guy went in the back room and returned with a brand new iPad 2 as a free exchange.
He reminded me that this was a one-time courtesy as it's not Apple's fault if I drop the iPad.
This is incredible customer service! Exchanging an abused $829 iPad on the spot is way above and beyond Apple's liability. Thank you Apple!
PS - The cat is still among the living.