ST-Junior BK Standard Series : Impossible to play in tune!

Bought this guitar for my granddaughter. The reviews were pretty good so I thought this should be a good value. Took the guitar out of the box and it seemed all fine. Tuned it up and strummed a chord. Horrible! Perhaps the strings needed a little stretching. Again, tuned it, strummed a chord. Horribly not in tune. Got out my chromatic tuner. Tuned it up and checked the note on the second fret and every string was sharp between 18 and 38 cents. That's a LOT! This is the first time I've ever experienced this bad of fret intonation - or lack of! Perhaps I got a lemon. Or perhaps quality and quality control on Harley Benton has gone down. Based on the guitar I received, I recommend staying away from this one!