I don't know why he should be complaining, if you rang Toshiba tech support they would tell you to go back to your retailer for a replacement within 28 days of purchase. The retailer would not lose out as he just passes it back as a "dead on arrival" unit. It does mean paperwork for him but not alot.
Software is certainly covered under the warranty, what use is a pc/laptop without an operating system! If an operating system came with it then its covered, if it fails before that, then its a hardware fault.
It should also NOT cost you another penny!, DEMAND your money back or a new replacement, not a refurbished one.
I used to work in the support dept of a very large IT company and they would be horrified at the treatment you are getting!
I would certainly go to Trading Standards with the rubbish you have been given.
jc
I once bought some software, admittedly cheap from the large pc chain. After installing it, I found it was ONLY in GERMAN

I took it straight back to the shop and they tried it on until I produced the emails I received from the the company with registration and passwords all in German... this was needed to work the flippin thing and useless without. But "just this once" they gave me my money back but told me it wasn't their policy to change/refund software and they hadn't had complaints before... oh yeah! right, so all customers in the local Berkshire area are fluent German speakers.
