Noel - its a common misconception mate, compounded by the retailers referring to manufacturer's warranty and telling customers that they will just have to see what the manufacturer says/is going to do about it etc. Under the Sale of Good Act (QLD) and the Trade Practices Act, consumer protection laws mandate/imply into a contract of sale for many goods under a certain value terms of merchantable quality and fitness for purpose. Under the TPA there are also provisions dealing with foreign companies who manufacture goods that are defective, but where they have no registration in Australia - in such cases it mandates that the retailer is considered the manufacturer. I would have to look at the sections again in terms of monetary values etc, but I am confident that a trip to the solicitors office would be worthwhile at least for an hour chat. As to whether it is worth it given the family size business, it depends on several factors, but from a strict recovery point of view I dont know...there may be insurance to cover the defect, but I doubt it.
Cheers