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If you do not wind the watch, and if it is electronic it obviously has a battery. Very possible even with a new watch the battery has run out. This is especially if the watch was sitting for about a year in their inventory before you bought it.
I am not sure if your watch has a kinetic type movement where it charges the watch, or it is purely an electro-mechanical type movement. I did read it has a quartz referenced movement for the mechanical balance wheel. This would certainly involved a battery. If changing the battery is not the fix you would have to send the watch for service.
You can get instructions for your watch from the Fossil web site.
Go to "fossil.com", go to the bottom of the page and you will see a menu, click on "customer care", and then look under "Product Info" on the left and you will see "watch instructions"
Click on this and a list of diagrams and watch descriptions will appear,Download
Unfortunately they do not list their instructions under model numbers, so you will have to run your cursor over the sets of instructions (the diagram will change as you do this), until you find the one that matches your watch.
The watch has a problem in the timing module and the second hand won't move (a cog wheel issue) this is clearly a manufacture defect that can not be remedied and should be returned since it is under warranty.
Actually there is no instruction manual for ME1020 available on Fossil website except for how to replace the battery. When you try to match ME1020 model with the available diagrams, there is no match (4 eyes).
To set the time, pull the crown out to the second position. Now set the min/hour hands. Date hand is linked to it so keep rotating the crown till the date is set is set correctly. Now remaining is the day setting. Notice that the day changes every 24 hour mark on the 24 Hour sub-dial, so cross this mark to change the day. Go reverse & again cross the 24 hour mark to get the next day. Repeat this till you get the correct day setting. Now your day is also set along with date & time!
I have a Fossil Twist ME1011, basically the same idea behind the one you have. What happens is there is a weighted third-circle that is in the back of the watch behind the battery (you can't see it) that spins a spring (the spring is the bottom seethrough part that ISN"T moving!) the spring then moved the UPPER seethrough part, which in turn spins the second hand!
IF the second hand stops working, carefully take the back off the watch and you'll see the weighted third-circle that I was talking about. It should spin, and in the middle there is a tiny flat head screw. The screw can get loose, so gently tighten it and the second hand should work again!
The watch is scrolling through the seconds, and is not something that needs to be set. If there is a bottom it is only there to change the way the seconds are scrolling? There are many different types of these, but most are just standard seconds.