I don't think it is remotely acceptable that a supposedly brand new product was supplied with paint and rust faults, no evidence of protective wax/grease, and traces of oil leaking. All faults point towards bad quality control, poor shipping process and storage in humid or wet conditions.
What have those conditions done to the components you cannot see – the motor, the switch-gear, the internal gears etc? And if the storage personnel and conditions were sub-standard; how else might the product have been damaged – might it have been roughly handled or otherwise abused ?
I would have absolutely refused to try to clean the rust off – it is not your problem, it is the supplier's. Sale of goods act : "product is not fit for purpose". The supplier must be given a chance to rectify the problem, either by supplying another machine or giving a full refund. I would also be asking to see the pre-delivery accuracy check report on the replacement machine, if you go down that route.
If you bought a new expensive watch, which on opening the box, had rust on the strap or the case, or a scratch on the face, you would take it straight back and demand a refund. Being engineers, we are good at – and like to solve – engineering problems, but that should not extend to correcting faults on brand new equipment.
I agree with others: that lathe does not look brand new, it has been supplied and returned already, or is damaged stock.
Edited By John Doe 2 on 10/11/2022 10:40:45