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I had this problem too. Luckily it cropped up within 30 days of buying it so I took it back and got a replacement.
I too have noticed that WiFi wants to act weird [or not connect] when mobile signal is very weak [1 or no bars]. Its like if it can't handshake w/ mobile, it won't hand over the reigns to WiFi. The WiFi does work for me w/ strong signal oddly. Now, this could be a static vs dhcp issue as well [the network at 1 or no bars is static; connect fine w/ good signal on dhcp [[mcdonalds]]], but I'm just observing. This seems to be a device-specific issue as my other androids connect at same [bunkered] location, but signal from any carrier is sparse to non-existent. Curious indeed.. I'm digging at it in spare time.
Regards,
Rob