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Hi Scotty
The cracks were in the gel/filler coat, but if you needed to sell the foil for any reason with cracks the value would be greatly reduced.
I've resisted the urge to post about my GoFOil fuse cracks, as I've been having a conversation with my retailer who's helping me out with a solution. Great reason to buy local!
As Scubaste notes - there's damage arising from loss of resale that needs to be addressed, and Australia provides substantial protection for consumers which overrides any manufacture's attempt at disclaimer. Consumer guarantees are available in NSW through Dept of Fair Trading actions, the liability for which always rests with the retailer - you can't be hand-balled to an O/S manufacturer.
Sorry for the legal speak - short story is talk with your foil shop and come up with reasonable outcome (or buy offshore on-line at your own risk). I've huge respect for what Alex Aguera has achieved with the GoFoil design, and I'm looking forward to using the beefed up 29" mast!