Lenore purchased a new washing machine from Ace Electrical. One day, shortly after she bought it, Lenore was washing her clothes when she heard a very loud bang. When she investigated the sound, Lenore realised it had come from her new washing machine and was shocked to see smoke and flames rising from the back of it.

After she put out the fire, Lenore called the store and demanded a refund. The Ace Electrical manager said that he would arrange to have the washing machine repaired, but would not replace it or give Lenore a refund.

Lenore wishes to sue the store under the Australian Consumer Law, seeking the washing machine's replacement with another new one and damages for the loss of the load of clothes valued at $500. Will Lenore win?

1. State the issue or issues
2. State the relevant rule or rules
3. Cite the relevant case or cases
4. Answer yes or No to the question posed at the end of the problem and EXPLAIN the reasons for your answer.