In discussion with the lawyers today, my friend was advised that his company's handling of the cancellation was absolutely correct in that he could show evidence for KnC themselves admitting that the units were not able to mine on all scrypt applications, while "can be utilised for any Scrypt-based application" is still even being claimed on the product sales description on their website today and that his subsequent explicit cancellation instruction to KnC on the basis that they did not have a product that met the product description (and still doesn't!), meant that KnC do not have the right to declare the Titan to be a 'non-refundable' product because, as he suspected, they haven't met their side of the deal.
Although, to be honest, his lawyer doubted the likelihood of KnC declaring a product to be 'non-refundable' to stand up in court anyway as it would be considered an unreasonable condition of sale.
At the point you cancel, KnC are required to honour that cancellation on the basis that, all the while their product cannot perform as was originally specified, they have not met their obligations in the sales contract and, therefore, your cancellation is valid and they must refund the money paid to them. Even if they subsequently manage to scrape together a firmware that magically fixes these performance issues, it's too late, if you've cancelled the order then they don't get more time to try and fix the units deficiencies, they have to accept the cancellation and refund.
He has to wait on KnC's response to his lawyers letter as they have until Friday to refund the money but if they do not his company is just going to sue them.
So, that is a B2B transaction for you to consider. Despite KnC's attempts to paint a B2B sale to be subject to onerous limitations of liability, it is not. They haven't produced a product that performs as the sales description stated. End of.
Exactly. Please keep us all updated and if possible provide contact info for your friend's representative. I'm tired of waiting for KNC to fix all these problems and have requested a refund based on the product not meeting its advertised suitability for 'any scrypt application'.