iPhone from Orange

I hope someone can advise and apologies, because I've posted this in Consumer Rights as well....

I have been with Orange for too many years to remember - since I got my first mobile phone anyway.

Two years ago, I entered a contract with Orange for an iPhone 3GS - this was a two year contract, and I had no problems until August last year. In August, my iPhone started rebooting itself, either during a call, when I was emailing, surfing, texting, whatever. Even when the phone was left on the side doing nothing at all - black screen to show it was sleeping and so on - suddenly the Apple logo would appear the the phone was rebooting again.

I visited the local Apple shop, who told me that the phone was not repairable and out of warranty, which I knew - just hoped they could fix it, but apparently not. I contacted my bank, Barclays, with whom I have an insurance policy on the phone, but they told me that the phone would take at least 3 weeks to replace and I would have to pay a large excess. As I'd just started doing some self-employed work, my mobile was my only means of keeping in touch with the clients I was doing urgent work for, so I contacted Orange.

Orange offered to get me an emergency replacement phone in 24 hours, but it would cost me £179.00, which would be added to my monthly bill. I decided to carry this cost as I could offset it against my earnings from the two projects I was working on.

Phone duly arrived the next day, which was fine.

In November, I took out a new contract with Orange on an iPhone 4S, but kept the 3GS as a 'work' phone on a PAYG sim. Again, all was fine until Christmas when the replacement 3GS started rebooting as the old one had. Again, I took it into the Apple shop, who told me it was a refurbished phone (which I didn't know) and out of warranty. It was also not fixable.

As I'd only had the phone for less than 4 months, and bought it from Orange not knowing it was a refurbished item, I contacted Orange to ask them to replace this obviously faulty handset. They refused.

I checked the Sale of Goods Act, and my understanding is that if an organisation is acting as a business and part of that business is to sell second hand goods (which effectively, and unknown to me, this phone was) they are obliged to sell the item with the customer having a reasonable expectation that it would work for a reasonable amount of time. The manager I spoke to at Orange was completely unreasonable, shouting at me down the phone, telling me I should have known the handset was refurbished, and that if I had a problem with it, it wasn't Orange's problem but mine and I should take it up with Apple who supplied Orange with the refurbed phone.

I stated that I had paid Orange for the phone, and not Apple, and therefore, my arrangement was with Orange and not Apple, but this completely obnoxious guy wasn't having any of it. I quoted the Sale of Goods Act to him, and he said that I was misinterpreting it, but his interpretation was different to mine and that was Orange's position, which is that the warranty on the refurbed phone started when I took out the contract - 21 months before I even got the phone - and that they were not obliged in any way to give a warranty on a second-hand phone, even if I didn't know it was second-hand.

I am now £179 out of pocket, with a duff phone, and pretty hacked off. Needless to say, when my current contract is up, I will be moving from Orange, who obviously have no idea of how to treat loyal customers.

Anyone out there got any ammunition I can take to Orange to get them to take responsibility for selling goods not fit for purpose, and supplying me with a phone that actually works for more than a few months?

As always, any help gratefully received.