In the business we call that smell the "magic smoke" smell. Magic smoke is created when something electrical fries.
If you can actually see evidence of burnt wires etc, then definitely take it back and get your $$$ back.
I've been into computers for a long long time and I learned very early to never do any real business with Best Buy or Future Shop other 'electronic stores' like them. They're ok for buying software or the odd card but if you want real service and support, pay a couple extra dollars and find a mom and pop type computer store that's been in business for a few years and has a good reputation with their customers.
If a store sells anything but computers, computer parts and computer peripherals it is by definition NOT a Computer Store, it's an electronics store and guys like me don't work at Best Buy but you can find us on the bench in a real Computer Store.
The one computer store I did business with back where I was living 8 years ago knew me and I knew them quite well. I went to build a PC for my wife so I bought all the parts there. The motherboard was bad out of the box. I went and exchanged the bad one and brought the new one home, installed and tested and the PC was still doing the same thing. Troubleshooting pointed at a bad mobo again so I took the whole tower in to their store in case they decided to question my abilities to diagnose. This store was owned by a Chinese couple. The wife looked at me and said, "Curt, you didn't have to go to the trouble, we know you, if you say it's the mobo, it's the mobo." She not only gave me a new mobo instantly but told me to install it at their store on their bench using their tools so I could be sure everything worked properly before I went home (I lived on an acreage 30 miles out of the city).
You DO NOT get that kind of service and support from any electronics store. You're lucky to get your PC back in a week if you have to take it in for repairs.
So my advice to you and your friend is find a reputable Computer Store near you that's been in business for a while and built up a reputation. Go in, introduce yourself to the owners and spend some time, ask some questions and get to know them enough that they recognize your face. In the future, it will benefit you to always go back there.
It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.