Office of the Attorney General News Release Archive

Friday, March 23, 2001


Agreement Resolves Lawsuit Over Classic Oak Outlet's Going Out of Business Sale

AUSTIN - Texas Attorney General John Cornyn today filed an agreed final judgment and permanent injunction to settle the agency's case with Austin's Classic Oak Outlet store. The agreement resolves the company's violations of the Texas Business and Commerce Code, specifically the store's misleading "going out of business" sale last fall and winter.

"Texas law specifies that retailers engaging in so-called 'going out of business' sales must follow strict requirements governing these types of sales," said Attorney General Cornyn. "Businesses must conduct their sales in such a way that complies with this law, including filing accurate inventories and obtaining a proper permit."

In this case, Classic Oak Outlet falsely advertised that its sale would extend from Oct. 30 last year until Nov. 5, when in fact the store continued the sale until early February this year, as its permit allowed it to do. This gave the buying public the false impression at the outset that the sale would be short-lived, which could have led customers to think they had little time to take advantage of the sale.

The store also violated the state's "going out of business "law by selling merchandise it had ordered after the sale began; by failing to comply with the state's requirements regarding the filing of inventories; and by beginning its sale one day earlier than its permit allowed.

Under the terms of the final judgment and permanent injunction, the company must comply with requirements of the "going out of business" law as it closes the books on its sale. It must also provide to the state detailed and verifiable inventory information. The judgment additionally orders Classic Oak Outlet to pay the state $15,000 in attorneys' fees and $3,000 in civil penalties.

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Contact: Mark Heckmann, Tom Kelley or Jane Dees Shepperd at (512) 463-2050.
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