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HP Pavillion DV9700 Black Screen

I've been given a HP Pavillion DV9700 to repair that has the black screen issue. Apparently this is a know issue with defective NVidia cards installed in this series of laptops. The laptop is just out of warranty and HP are washing their hands of it. Can they legally do this? As this is a known issue, so shouldn't they be extending the warranty on this line of laptops and replacing the cards (that they knew were defective) for free?

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