I'd probably try to replace the O rings if it is just behind the cap and keep it if it works. Although I love Bushnell products, they really tried to leave me out to pasture with an old Bushnell Sportview I had. I know it was not an expensive scope at the time $80. They did finally replace it, but that was after I pitched a fuss and relayed my story on one of their message boards including this one. Bushnell only seems to really want to stand behind the Elite versions. Although they claim that all their scopes have a lifetime warranty only the Elite ones are no questions asked. They sent my old Bushnell back after I sent them the cash to just look at it. They said it had been abused, but that was not the case and I think it was just an out for them to not stand behind the warranty on a scope they no longer make. That made me furious, and I'm afraid you would more than likely head down that same path with them. They did send me a Bushnell Banner for replacement, but that was after a great effort on my part to just not go away. Even if they own Simmons, it is very unlikely they would want to stand behind one that they did not make.
Lately I have good experiences with Mueller's customer service and I will have to use them again I'm afraid. I have a 2-7 Multishot that has dust under the lens and I have no idea how. Anyway good luck and if you decide to replace it, pick a make that has good customer support reviews in the event it turns south as almost all of them do at one point.
