January 5, 2001
District Attorney Nola Foulston announced today that the Consumer Fraud and Economic Crime Division of this office has received a number of consumer inquiries concerning the "Going out of Business" sale currently taking place at the Montgomery Ward stores located in Wichita and around the country.
Foulston noted that this sale is being conducted under an Interim Order approved by the United States Bankruptcy Court for the District of Delaware, precipitated by a Chapter 11 Bankruptcy filing by Montgomery Ward, LLC on December 28, 2000. The Bankruptcy Court has issued the order authorizing store closing sales. The District Attorney's office has obtained a copy of the order that provides that the store can post signs indicating all sales are final. The order further provides that federal, state and local authorities have very limited jurisdiction over this sale and that federal, state and local statutes, rules and ordinances are generally inapplicable as to the advertisement and conduct of the sale.
Foulston notes that this type of event can provide some good values but consumers should carefully examine any merchandise prior to it being purchased to ensure that is in good condition and appropriate for its intended use. Consumers generally have the right to assert a claim for breach of "implied warranty of merchantability" if they purchase a product that is defective. The Kansas Consumer Protection Act generally prohibits merchants from disclaiming the implied warranty of merchantability that is provided under the state's uniform commercial code. That protection may not exist in this case.
Consumers should also note the actual price charged for each item and assure themselves that they are obtaining a "good value." Finally, shoppers should carefully review all manufacturer's warranties and understand that the warranty provided by the manufacturer of a particular product may be the primary recourse should the product turn out to be defective.
For more information, contact Joe Kisner, Deputy District Attorney-Civil, at 383-7921.
