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I'd also suspect it is defective.
If you already loosened the lug nuts and it was still hammering away, I'm pretty sure something is wrong.
I have an older Black & Decker that is rated to 150 ft-lbs. It does not need to warm up to hammer. In a case like yours, mine will just spin away with such a low torque load.
Funny, I have this B&D wrench and also a 250 ft-lbs air compressor style. I rarely use either one. Geeze, the compressor hasn't even been hooked up since I moved 12 years ago. Don't know why, maybe I'm just too old school.
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