peroski:
I'm not sure what the law / CGA has to do with this.
"If the goods you buy turn out to be faulty you are covered by the Consumer Guarantees Act"
http://www.consumeraffairs.govt.nz
Yip.
Mind telling us exactly how Telecom's actions have breached the CGA?
Has she asked for a full refund and been refused? If not, and she's asked for the product to replaced under warranty then there are absolutely no issues with the product being returned to the supplier or service agent.