BNSF is right -- I just zoomed in on the photo.

The line gets gradually shallower as it travels away from the cable port. It starts all the way through the paint, exposing the carbon. Then you see that it doesn't make its way to the carbon, or even all the way through the top coat.

If carbon cracks, the next thing that cracks is the paint or primer right on top of it. When cracks develop in carbon and it begins to show in the paint, it looks like a tight line. Like a crack coming up through ice that's still solid.

This looks exactly like damage caused from the outside by something sharp. When the force was enough to cut all the way through the paint, it splintered, which is what paint like this does when you cut it. Then the cut makes a shallower valley, until you can see clearly it's just a scratch through part of the paint. Sure looks like the work of a box cutter or razor blade to me.

Also, if you really zoom in, I think you can see untouched paint between the cable port and the start of this cut. In other words, this damage does not look like it extends to the hole in the frame.

Of course, carbon can be cracked from an external force. Just hit it with a hammer or something. There will be paint damage and splintering, and also cracked carbon underneath.

But if the idea is that this frame cracked due to stress risers, or fatigue or whatever, it would not look like this.

To the OP, if you decide to return it, do not show them the photo with your chain wrapped around the crank like that. That looks like a crazy mess. Poorly adjusted chains drop, but whoa.

Personally, I'd try for a refund take my business elsewhere. The scratch/crack is bad enough but any shop that lets a brand new bike out the door that is that badly out of adjustment isn't to be trusted IMHO. It's not like this a cheap Walmart bike bike. And setting up and adjusting the Di2 derailleurs is really a pretty simple process once you've done a time or two. No excuse for this type of mess.

Just to clarify, the chain could have been dropped once due to faulty initial adjustment. Any drops after the first would have been operator error. That said, I don't suppose OP is obligated to tell the shop he kept on doing it. Will be interesting to see how this pans out!

For a carbon bike, I'd be camping outside the store until they open the doors for you.

My first bicycle purchase and first ride had the chain fall to the inside front chain ring twice. I was new to cycling so I gave it a second chance. It scratched up the frame some. I turned around to head home slowly and the handle bars fell out of the stem. I walked the bicycle home and took it right back to the LBS and said I want my money back. No questions were ask by the LBS. I know you have COVID going on here, but I would not deal with this LBS. I went to another LBS in town and had a great experience. I look back on this and think it was like a message from God, I knew nothing about bicycles, but after this I made sure to do some research first. This forum was one thing that helped in understanding what I needed to buy. The LBS blamed it on the number of bicycles they had to put together as it was the spring season.

That is most certainly a warranty and Cannondale should honor that, obviously they might need the shop to be involved usually with bikes you cannot file a warranty claim on your own but hopefully someone at the shop can help out with that even if closed and get you sorted. If not reach out to Cannondale directly and explain the situation. They may not have a bike to send you right now but see what is possible. I don't really fuss over a small scratch but cracks or what appear to be cracks are a different affair.

I can say if you had Synchro shift set up on the bike for Di2 that can cause front derailleur issues as it might shift at the wrong time. I busted my Ultegra front derailleur near the start of a 3 day ride going up a hill. My GM luckily had a Dura Ace front derailleur in his kit from doing NRS and one of the support crew picked it up for me but I opted to just ride in the small ring and spin out a bunch but have the easy gear uphills since I figured I would rather put it in a stand and make sure the firmware is all correct and see what may have caused it before just replacing the part and having it happen again. Needless to say for me the Semi Synchro just wasn't the move but Shimano replaced the derailleur under warranty and it is still going strong after 2 years.

I don't think I have ever cursed that much and so loudly for so long. I was pissed in that moment luckily I didn't decide to throw the bike or something stupid like that, that would have hurt. That bike is my baby (well one of many babies but probably the most prized)

If they don't want to do a refund tell them you need to drop the bike off for adjustment and then request a charge back, Credit cards don't like to do chargebacks unless the property is in the possession of the seller. Should be easy once they have it though. I'd be disinclined to deal with a shop that let that out the door with no notice and poor adjustment.

Brilliant solution, will remember this!

I've seen a lot of scratches and gouges from dropped chains, but cannot recall ever seeing a chain get completely wrapped around the crankarm.

This reminds me of a Canadian lawsuit against a toothbrush manufacturer a few years ago - the plaintiff was brushing their teeth, the toothbrush allegedly snapped, and the plaintiff continued the brushy-brushy motion with the jagged broken stub of the toothbrush, resulting in mouth injuries for which they wanted compensation. The judge laughed the plaintiff out of court - you have some responsibility to not make a situation worse after a product fails... such as continuing to pedal after the chain is off. No, the chain should not have fallen off if the bike was properly adjusted, but it's on the buyer to get it fixed when a problem is noticed and not continue pedalling despite the chain being off.

I've had a chain come off and go around the crankarm once but I've never hear or seen a chain wrapped twice around a crankarm. I can't imagine how that happened.

Cheers

Good news. Shop took it back no problems.

bad news. My replacement bike had a chip on the frame but the good news in that is they are ordering me a fresh one from the warehouse that hasn’t been built yet . Bad news. About another week of waiting. Lol. Oh well

this is the only way I can exercise with COVID. Going to be gaining some weight in the meantime

Until you have another way to exercise you could always do some plate pushaways and fork putdowns.

I wondered how my tandem chain managed to form two loops when it derailed from the big ring the other day. Now I see from this photo, or do I?. The chain was usable but noisy and had to be changed.

It doesn't look like a crack to me. It looks more like the pick or screwdriver being used to push in that grommet slipped. If you've ever tried installing them, you'll know what I mean. I would still definitely take it back though.