Customer 7 (bad)

Customer came into the store, customer service gave her an offer that if she turned in her current phone we would cancel her agreement no charge so she could get a new one. The only requirement was her phone could not be damaged. So she gives her phone to one of our sales reps and they checked out the phone and were unable to see if it was damaged or not because her screen protector was cracked and they would need to take it off to verify their is no damage. The customer refused she said that was unacceptable. This confused me who's just listening in on the conversation because if shes giving us the phone then it shouldn't matter to her if it does not have a screen protector. Either way our manager came over and said we cant take it back without checking but if it is damaged we will replace your screen protector for you since we are asking to take it off. This is a courtesy she decided to do for the customer and not a required policy. The customer agrees and we check and their is a crack on the screen so she tells the customer we can not take it back until it is fixed or replaced and offers to go and grab her replacement screen protector. The customer screams out "It looks like you just don't want my service, you are making it so difficult for me to get a new phone. I don't want your god damn screen protector i want the new phone". So my manager said your phone will cost around $300 to buy it out today in order to get out of your agreement and get a new one are you sure you don't want the screen protector? And the customer replies "No i don't want the screen protector i want the new phone and you will take this one back and not make me pay the $300 bitch". At this point my manager is done, customer has refused the screen protector, called her a bitch so she tells the customer that she will not be working with her today and to have a nice day and walks into the back room. Now with part of our back room where we keep most of the work stations contains no wall but rather a glass cover with a few holes in it for talking and passing small things through. The customer leaves and comes back 2 min later and sees my manager on the computer in the back room and starts shouting "You need to replace my screen protector, You need to replace my screen protector, You need to replace my screen protector" she said this phrase a good 50 times while she was standing there. Both the customers we had in the store at the time said to her "Ma'am you need to leave, your shouting and disrupting their business" The lady ignores the other customers telling her to leave and my manager walks out of sight to talk to her supervisor about the situation to inform him shes about to tell her to leave just in case something goes wrong hes aware. Meanwhile one of my coworkers tells the woman miss you need to leave before i call the police this is a place of business, you don't have to be here we do and this is disrupting the service we are trying to provide to our customers. After she said the phrase 5 more times or so she storms out of the front door angry. I think she was crazy but what do you think. Was the customer right in trying to redeem her screen protector offered? Did we have the right to retract the offer since it was a courtesy and the customer was yelling and name calling? Do you wish the police were called and she got arrested like i kind of was hoping. Comment below.