Your builder is totally wrong. Your description indicates the slab is cracked and is vertically displaced. This is a significant defect that not only was concealed by placing vinyl over it, but that goes far beyond any standard for "level tolerances".
Offer him another opportunity to make it right before you talk to the licensing board, local building inspection department, State Consumer protection comission and Better Business Bureau, and perhaps best of all your attorney. He might see it your way since he doesn't have a leg to stand on.
If you will indicate what State you are in I will post additional information of resources available to you.