I wasn't asked to set up an account but when you click on the start menu the account name at the top is Michael. Does this mean that the laptop is actually not new but has been returned to the store by someone called Michael? Surely if this is the case I shouldn't have been charged for a new laptop and should have been informed that it had been returned to the store.

Yes, you should inquire. Do you still have your receipt ?

Yes, I bought it yesterday but only got around to setting it up this evening. I have the receipt and took out an insurance on it too. Am just a bit annoyed that I seem to have been sold a second hand laptop without being informed of this.