Man, this salesman really is unethical if that's what he was doing. You absolutely need to contact the store owner and inform him or her what happened, and I'd put it in writing and copy customer service at Specialized, whatever VP is in charge of keeping customers happy. That's the person you want to write a letter to. That will get you some action on this.

Good luck getting a better fitting bike.

Roxy - 5'3.5" and riding a 51cm 2004 Specialized Ruby Comp, wondering now if my numb hands may be because my bike is too big for me