New Magic Mouse not functioning properly on Mac

I bought a new magic mouse, charged it and connected it to my Mac. The mouse can be used as a cursor, but does not do anything else? I had a magic mouse before (lost it on a trip) and it worked well. What is wrong with this one? Disconnected it several times, turned it and the Mac off and on....

[Re-Titled by Moderator]

Original Title: mouse only works partially