On the situation of the customer in the modern retail business of computers

The Problem:

A computer. It does not work. It comes from the Gateway company. The Gateway System Restore / Recovery CDs do not work either. Instead, one gets a 'Blue Screen of Death'. The BSOD corrupts the Microsoft Windows Vista installation process. The computer will not boot. Not even in safe mode. It displays various error messages instead:

*"The computer restarted unexpectedly or encountered an unexpected error"
*"Windows installation cannot proceed"

Solution

0. Turn off power supply, don't unplug
1. Open case
2. Remove all of the cards from their slots
-careful to not damage the motherboard
-rocking back and forth oh-so-gently may help
3. Remove RAM, if you dare.
4. Flash to new version of BIOS
5. Installation should now complete OK
6. Put all the cards and RAM back in

Analysis

The person who brought me this problem said that they had taken it to Best Buy for help. Best Buy refused them, claiming the warranty only covered hardware problems, not software problems like viruses, which they claimed the person had. Best Buy suggested that the person pay Best Buy over one hundred dollars American for some sort of repair service.

The person pointed out to Best Buy that upon purchase, Best Buy had told person that if they "had any problems at all" to bring it back in, and it would be repaired under warranty. If I am not mistaken, that constitutes and oral contract.

The person also pointed out that Best Buy had sold the person the Kaspersky 'anti virus' software, implying that it would prevent viruses.

In total, Best Buy received over $100 more than the computer would have initially cost, by upselling the customer various extras such as the warranty and anti-virus program; neither of which performed as advertised.

Questions

Did Best Buy violate a contract?

Did Best Buy perpetrate a fraud?

If Best Buy does this thousands of times a day, how much of their corporate income is based on these activities?