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HomeMy WebLinkAbout99-02820COMMONWEALTH OF PENNSYLVANIA ACTING BY.ATTORNEY GENERAL D. MICHAEL FISHER Plaintiff V. NEOCLASSIC NEON, INC., JOHN HALL, and CAROL HALL 132 N. HANOVER STREET CARLISLE, PA 17013 Respondents IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION - EQUITY No. 99-2820 Equity -QRDER AND NOW, this day of JR c f 2000, upon consideration of the Respondents' failure to respond to the Rule to Show Cause issued in this matter and the Commonwealth's Motion to Make Rule Absolute, it is hereby ORDERED that the Commonwealth's Motion is GRANTED. The Respondents are found to be in violation of the terms of the Assurance of Voluntary Compliance filed under this docket. Pursuant to the Consumer Protection Law, 73 P.S. § 201-8(a), the Respondents shall immediately forfeit and pay, jointly and severally, $5,000.00 to the Commonwealth. Judgment is awarded in favor of the Commonwealth and against the Respondents, jointly and severally, in the amount of $5,000.00. ua%/ ?? v J. ;: f' r ? ? ? ? COMMONWEALTH OF PENNSYLVANIA ACTING BY ATTORNEY GENERAL D. MICHAEL FISHER Plaintiff V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION - EQUITY NEOCLASSIC NEON, INC., JOHN HALL, and CAROL HALL 132 N. HANOVER STREET CARLISLE, PA 17013 No. 99-2820 Equity Respondents MOTION TO MAKE RULE ABSOLUTE The Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection ("Commonwealth"), respectfully submits this Motion to Make Rule Absolute. In support thereof, the Commonwealth avers the following: 1. On March 16, 2000, the Commonwealth filed a Petition for Sanctions under the Consumer Protection Law to enforce the terms of an Assurance of Voluntary Compliance ("AVC") entered into by the Respondent and filed with this Court on May 10, 1999. 2. The Petition alleged that the Respondents had failed to make the January - March 2000 payments that were required under the AVC. 3. On March 17, 2000, the Court issued a Rule for the Respondents to show cause, if any they had, as to why the Commonwealth's Petition should not be granted. The Rule was returnable 20 days after service. 4. On March 20, 2000, the Commonwealth served the Respondents with the Court's Order by first class mail. See Affidavit of Service attached hereto as Exhibit A. 5. The Respondents have failed to reply to the Rule, their answer being due on April 10, 2000. 6. Despite failing to answer the Court's Rule, the Respondents have paid $2,325.50, representing full restitution under the parties' prior AVC. The Respondents and the Commonwealth stipulated in the Assurance that: "This Assurance of Voluntary Compliance shall have the same force and effect as a permanent injunction issued pursuant to § 201-4 of the Consumer Protection Law, so that any violations of this Assurance of Voluntary Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as provided in §§ 201-8, 201-9 ans 201-9.1 of the Consumer Protection. Law and any other equitable remedies available to Attorney General under law." Assurance at p. 5. 8. Pursuant to § 201-8(a) of the Consumer Protection Law, any person who violates "any of the terns of an assurance of voluntary compliance ... shall forfeit and pay to the Commonwealth a civil penalty of not more than five thousand dollars ($5,000) for each violation." Based upon the Respondents' payment of the restitution amounts, the Commonwealth will only seek the assessment of a civil penalty for one violation of the AVC. WHEREFORE, the Commonwealth respectfully prays this Honorable Court to enter an Order: A. Finding the Respondents in violation of the previous Assurance of Voluntary Compliance; B. Directing that the Respondents pay, jointly and severally, a civil penalty of $5,000.00 to the Commonwealth pursuant to § 201-8(a) of the Consumer Protection Law. -2- .- I RESPECTFULLY SUBMITTED: BY: D MICHAEL FISHER D. MICHAEL FISHER ATTORNEY GENERAL BY: FRANK T DONAGH E FRANK T. DONAGHUE CHIEF DEPUTY ATTORNEY GENERAL BY: BY: Date: aCO L _ DAMyFiles FORMS\MOTIONS\Ne lassic nwn • mra samwt, 042000 MARK S. STEWART DEPUTY ATTORNEY GENERAL ATTORNEY II.D. N . 75958 PODI L. FLITTON DEPUTY ATTORNEY GENERAL ATTORNEY I.D. NO. 58131 OFFICE OF ATTORNEY GENERAL 132 KLINE PLAZA HARRISBURG, PA 17104 (717) 787 - 7109 -3- EXHIBIT A AFFIDAVIT OF SERVICE 1, Karen L. Nutter, being duly sworn according to law depose and state that I am a Clerk. Typist for the Harrisburg Regional Office of the Bureau of Consumer Protection, Office of Attorney General, and I hereby certify that on March 20, 2000, a copy of the Order dated March 17, 2000, was sent via first class mail to: NeoClassie Neon, Inc. John Hall Carol Hall 132 N. Hanover Street Carlisle, PA 17013 Karen L. Nutter Sworn to and sub ld?f 1 j' Notary before me this My Commission Expires: -- N. S'' + LAC;'.: .'" 'Y ?'ub 5 200 CERTIFICATE OF SERVICE I hereby certify that on the 20"' day of April, 2000, I served a true and correct copy of the foregoing Motion to Make Rule Absolute upon the following persons, at the addresses listed below, by first class mail: Neoclassic Neon, Inc. John Hall Carol Hall 132 N. Hanover Street Carlisle, PA 17013 Mark S. Stewart Deputy Attorney General ,,, ??; • ? ; :; ? : c7 __ ?., Z S I e.. I I C MAR 16 20000 COMMONWEALTH OF PENNSYLVANIA IN THE COURT OP COMMON PLEAS OF ACTING BY ATTORNEY GENERAL CUMBERLAND COUNTY, D. MICHAEL FISHER PENNSYLVANIA Plaintiff +• CIVIL DIVISION - EQUITY NEOCLASSIC NEON, INC., JOHN HALL, and CAROL HALL 132 N. HANOVER STREET CARLISLE, PA 17013 No. 99-2820 Equity Respondents L: ORDER AND NOW, this ? lL'day of March, 2000, a Rule is hereby issued upon the Respondents in the above-captioned matter to show cause, if any they have, why an order granting the Commonwealth's Petition for Sanctions under the Consumer Protection Law should not issue as prayed for in the within Petition. Rule returnable 2,10 _ days after service. J ?, o n y n;, a 1 r [JI LI) ?v n COMMONWEALTH OF PENNSYLVANIA ACTING BY ATTORNEY GENERAL D. MICHAEL FISHER Plaintiff V. NEOCLASSIC NEON, INC., JOHN HALL, and CAROL HALL 132 N. HANOVER STREET CARLISLE, PA 17013 Respondents IN 'rHE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION - EQUITY No. 99-2820 Equity PETITION FOR SANCTIONS UNDER THE CONSUMER PROTECTION LAW The Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection ("Commonwealth"), brings this Petition for Sanctions under the Unfair Trade Practices and Consumer Protection Law, pursuant to § 201- 8(x) of the Consumer Protection Law, 73 P.S. §§ 201-1-201-9.3, to have the Respondents in the above-captioned matter sanctioned and subjected to other equitable relief for failing to obey a previous agreement filed with this Court. In support thereof, the Commonwealth avers as follows: 1. Plaintiff, the Petitioner in this action, is the Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection. 2. The Respondent, Neoclassic Neon, Inc., is a Pennsylvania corporation engaged in trade or commerce through the production and sale of custom made neon products and furnishings from a principal place of business located at 132 N. Hanover Street, Carlisle, PA 17013. 3. The Respondent, John Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Mr, Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Mr. Hall resides at 132 N. Hanover Street, Carlisle, PA 17013. 4. The Respondent, Carol Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Ms. Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Ms. Hall resides at 132 N. Hanover Street, Carlisle, PA 17013. 5. On May 10, 1999, the Commonwealth and the Respondents filed an Assurance of Voluntary Compliance ("AVC") with this Court regarding alleged violations of the Consumer Protection Law. The Assurance is attached hereto as Exhibit A. 6. In the Assurance, the Respondents agreed that they would pay, jointly and severally, to the Commonwealth the total sum of $7,325.00 in accordance with a payment plan. AVC at II-V. 7. The AVC's payment plan called for a payment of $500.00 on May 1, 1999, and on the first day of each month thereafter for nine months. AVC at V. 8. On March 1, 2000, the Respondents were to pay $662.00. IL 9. To date, the Respondents have failed to make the January - March, 2000, payments, totaling $1,662.00. -2- 10. The Respondents' payments were to be utilized as consumer. restitution to consumers John Rowe and Joe Ley, both of whom purchased and paid for goods that they never received. As a result of the Respondents' failure to pay, the consumers continue to suffer economic harm. 11. The AVC specified that any violation of the payment plan would be deemed a violation of the AVC. 12. In the AVC, the parties stipulated: "NOW THEREFORE, the Commonwealth and the Respondent [sic] hereby stipulate that this Assurance of Voluntary Compliance shall have the same force and effect as a permanent injunction issued under § 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any other equitable relief which the Court deems necessary or proper." AVC at p. 5. 13. Pursuant to § 201-8(a) of the Consumer Protection Law, any person who violates "any of the terns of an assurance of voluntary compliance ... shall forfeit and pay to the Commonwealth a civil penalty of not more than five thousand dollars ($5,000) for each violation." (emphasis added.) 14. The Respondents' behavior represents a flagrant disregard for the authority of this Court and of the Office of Attorney General. -3- WHEREFORE, the Commonwealth respectfully prays this Honorable Court to enter an Order: A. Finding the Respondents in violation of the previous Assurance of Voluntary Compliance; B. Directing the Respondents to become current under the Assurance's payment plan immediately by submitting $1,662.00, and any other amounts that become due and owing during the pendency of this Petition, to the Commonwealth; C. Assessing a civil penalty, jointly and severally, of $5,000.00 under §201-8(a) of the Consumer Protection Law for gash violation of the terms of the Assurance of Voluntary Compliance filed with this Court; D. Awarding such other relief as this Court deems appropriate and necessary to ensure compliance with the Assurance of Voluntary Compliance. RESPECTFULLY SUBMITTED: D. MICHAEL FISHER D. MICHAEL FISHER ATTORNEY GENERAL FRANK T. DONAGHUE FRANK T. DONAGHUE CHIEF DEPUTY ATTORNEY GENERAL /6/ - MARKS. STEWART DEPUTY ATTORNEY GENERAL ATTORNEY I.D. NO. 75958 -4- DEPUTY ATTORNEY GENERAL v ATTORNEY I.D, NO. 58131 OFFICE OF ATTORNEY GENERAL 132 KLINE PLAZA HARRISBURG, PA 17104 Date: 717-787.7109 3 ??90 D:\MyFiles\FORMS\PET&BRPS\Neoclassic neon • sanc.wpd031300 -5- EXHIBIT A COMMONWEALTH OF PENNSYLVANIA ACTING BY ATTORNEY GENERAL D. MICHAEL FISHER Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL DIVISION - EQUITY NEOCLASSIC NEON, INC., qq _ C JOHN HALL, and CAROL HALL Z f a? C 132 N. HANOVER STREET CARLISLE, PA 17013 No. 1999 Respondents ASSURANCE OF VO . TNTARY OMP IAN 0 ;.: it WHEREAS, the Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection ("Commonwealth"), has caused an investigation to be made into the business practices of Neoclassic Neon, Inc., John Hall and Carol Hall ("Respondents"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S. §§ 201-1-201-9.3 ("Consumer Protection Law"); and WHEREAS, the Respondent, Neoclassic Neon, Inc., is a Pennsylvania corporation engaged in trade or commerce through the production and sale of custom made neon products and furnishings from a principal place of business located at 132 N. Hanover Street, Carlisle, PA 17013; and WHEREAS, the Respondent, John Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Mr. Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Mr. Hall resides at Y2 N. Hanover Street, Carlisle, PA 17013; and WHEREAS, the Respondent, Carol Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Ms. Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Ms. Hall resides at 132 N. Hanover Street, Carlisle, PA 17013; and WHEREAS, based upon its investigation, the Commonwealth asserts that the Respondents engaged in conduct violative of the Consumer Protection. Law, 73 P.S. §§ 201- I-201-9.3, as more fully set forth herein: 1. The Respondents sold goods to and accepted payment from consumer Joe Ley in the amount of $5,350.00. 2. Rowe, Jr., in the amount of $4,975.00. 3. The Respondents utilized the consumers' money for their own purposes and failed to deliver the purchased goods. 4. The Commonwealth alleges that the Respondents' conduct violated of § 201- 2(4)(xxi) of the Consumer Protection Law. 5. The Respondents have paid partial restitution to the aggrieved consumers. WHEREAS, the Respondents have agreed to cease and desist from the aforementioned conduct, and desire to comply with these civil laws of the Commonwealth; and WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, m lieu of commencing proceedings pursuant to § 201-4 of the Consumer Protection Law; and s : -2- The Respondents sold goods to and accepted payment from consumer John WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary Compliance shall not be considered an admission of a violation for any purpose. NOW THEREFORE, while engaging in trade or commerce within the Commonwealth of Pennsylvania, the Respondents agree for themselves, their officers, partners, representatives, employees, and all other persons acting on their behalf, jointly or individually, directly or through any corporate or business device, as follows: 1. The Respondents shall comply with any and all provisions of the Consumer. Protection taw, and are permanently enjoined from any violation thereof. 11. The Respondents are jointly and severally liable for and shall pay $6,325.50 to the Commonwealth to be used as restitution to consumers Ley and Rowe., 111. The Respondents are jointly and severally liable for and shall pay $500.00 to the Commonwealth as a civil penalty. IV. The Respondents are jointly and severally liable for and shall pay $500.00 to the Commonwealth as costs of investigation and/or for future public protection purposes. V. The Respondents shall pay the total sum of $7,325.50 in accordance with the following payment plan, any violation of which shall be deemed a violation of this Assurance: a. On May 1, 1999, and on the first day of each month for the following nine months, the Respondents shall pay $500.00 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; b. On March 1, 2000, the Respondents shall pay $662.00 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; T -3- i I: I` i f I. i C. On April 1, 2000, the Respondent shall pay $663.50 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; d. On May I and June 1, 2000, the Respondents shall pay $500.00 to the Commonwealth. VI. In the event that the Respondents fail to make any one payment within thirty (30) days after the due date of the payment, or if the Respondents are late by five (5) or more days in making any two payments, regardless of whether they are consecutive or non- consecutive, the Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance immediately due and owing. Upon written demand, the Respondents immediately shall make full payment of the accelerated amount. Failure to so pay the accelerated amount shall be deemed a violation of this Assurance and shall subject the Respondents to all of the sanctions And penalties provided for by this Assurance and otherwise by law. VII The Respondents stipulate that, in the event that Neoclassic Neon, Inc., John Hall or Carol Hall files for protection under the United States Bankruptcy Code, the debts incurred herein shall be considered by them to be nondischargeable pursuant to I I U.S.C. § 523(a)(2)(A) and (7). The Respondents further stipulate that the consumer restitution encompassed herein represents debts entitled to treatment under l I U.S.C. § 507(x)(6) as a consumer priority. VIII. All monies owed by the Respondents under this Assurance shall be paid by certified check, cashier's check or money order, made payable to the Commonwealth of Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza, Harrisburg, PA 17104. r . -4- I IX. This Court shall maintain jurisdiction over the subject matter of this Assurance of Voluntary Compliance and over the Respondent for the purpose of enforcing this Assurance. X. Provided that nothing contained herein shall be construed to waive any. individual right of action by a consumer or a local, state, federal, or other governmental . entity. NOW THEREFORE, the Commonwealth and the Respondent hereby stipulate that this Assurance of Voluntary Compliance shall have the same force and effect as a permanent injunction issued under § 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the. Consumer Protection Law and any other equitable relief which the Court deems necessary or proper. Witness the following signatures this -L_ day ofA,?Eil,?1999. FOR THE PLAINTIFF: ` BY: D_. MICHAFI FISHER D. MICHAEL FISHER ATTORNEY GENERAL BY: DOUGLAS P VAlft" FR DOUGLAS P. YAUGER CHIEF DEPUTY ATTORNEY GENERAL T -5- FOR RESPONDENT NEOCLASSIC: NEON, INC. BY: N R. HALL, . OWNER NEOCLASSIC NEON, INC. FOR RESPONDENT JOHN HALL: BY JON R. HAL t 1 BY: , OPEPUjTY LFLITTON ATTORNEY Y GENERAL ATTORNEY I.D. No. 58131 ,uiriw BY: ff---4a MARK S. STEWART- DEPUTY ATTORNEY GENERAL ATTORNEY I.D. No. 75958 OFFICE OF ATTORNEY GENERAL 132 KLINE PLAZA HARRISBURG, PA 17104 717-787-7109 D:%Myrilcs\F0lRMS\AVC\Ncoclessic nwn'.wpd642099 T -6- FOR RESPONDENT CAROL HALL: BY: CAROL A. HALL' i 04 CERTIFICATE OF SERVICE I hereby certify that on the /44W day of March, 2000, I served a true and correct copy of the foregoing Petition for Sanctions under the Unfair Trade Practices and Consumer Protection Law upon the following persons, at the addresses listed below, by first class mail: Neoclassic Neon, Inc. John Hall Carol Hall 132 N. Hanover Street Carlisle, PA 17013 Mark S. Stewart Deputy Attorney General Q-, r. urc:) X25 N ? 7C u n? 4 v o COMMONWEALTH OF PENNSYLVANIA ACTING BY ATTORNEY GENERAL D. MICHAEL FISHER Plaintiff v NEOCLASSIC NEON, INC., JOHN HALL, and CAROL HALL 132 N. HANOVER STREET CARLISLE, PA 17013 Respondents IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION - EQUITY 9y- a?ao No. 1999 WHEREAS, the Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection ("Commonwealth"), has caused an investigation to be made into the business practices of Neoclassic Neon, Inc., John Hall and Carol Hall ("Respondents"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S. §§ 201-1-201-9.3 ("Consumer Protection Law"); and WHEREAS, the Respondent, Neoclassic Neon, Inc., is a Pennsylvania corporation engaged in trade or commerce through the production and sale of custom made neon products and furnishings from a principal place of business located at 132 N. Hanover Street, Carlisle, PA 17013; and WHEREAS, the Respondent, John Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Mr. Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Mr. Hall resides at 132 N. Hanover Street, Carlisle, PA 17013; and '•..... __. ?_ .- _ ? ...- .'add; WHEREAS, the Respondent, Carol Hall, is an adult individual engaged in trade or commerce through the production and sale of custom made neon products and furnishings. Ms. Hall is an owner and officer of Respondent Neoclassic Neon, and in that capacity exercised complete control over the practices of Respondent Neoclassic. Ms. Hall resides at 132 N. Hanover Street, Carlisle, PA 17013; and WHEREAS, based upon its investigation, the Commonwealth asserts that the Respondents engaged in conduct violative of the Consumer Protection Law, 73 P.S. §§ 201- 1-201-9.3, as more fully set forth herein: 1. The Respondents sold goods to and accepted payment from consumer Joe Ley in the amount of $5,350.00. 2. The Respondents sold goods to and accepted payment from consumer John Rowe, Jr., in the amount of $4,975.00. 3. The Respondents utilized the consumers' money for their own purposes and failed to deliver the purchased goods. 4. The Commonwealth alleges that the Respondents' conduct violated of § 201- 2(4)(xxi) of the Consumer Protection Law. 5. The Respondents have paid partial restitution to the aggrieved consumers. WHEREAS, the Respondents have agreed to cease and desist from the aforementioned conduct, and desire to comply with these civil laws of the Commonwealth; and WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of Voluntary Compliance, pursuant to § 201-5 of the Consumer Protection Law, in lieu of commencing proceedings pursuant to § 201-4 of the Consumer Protection Law; and -2- WHEREAS, under the Consumer Protection law, this Assurance of Voluntary Compliance shall not be considered an admission of a violation for any purpose. NOW THEREFORE, while engaging in trade or commerce within the Commonwealth of Pennsylvania, the Respondents agree for themselves, their officers, partners, representatives, employees, and all other persons acting on their behalf, jointly or individually, directly or through any corporate or business device, as follows: 1. The Respondents shall comply. with any and all provisions of the Consumer Protection Law, and are permanently enjoined from any violation thereof. 11. The Respondents are jointly and severally liable for and shall pay $6,325.50 to the Commonwealth to be used as restitution to consumers Ley and Rowe. III. The Respondents are jointly and severally liable for and shall pay $500.00 to the Commonwealth as a civil penalty. IV. The Respondents are jointly and severally liable for and shall pay $500.00 to the Commonwealth as costs of investigation and/or for future public protection purposes. V. The Respondents shall pay the total sum of $7,325.50 in accordance with the following payment plan, any violation of which shall be deemed a violation of this Assurance: a. On May 1, 1999, and on the first day of each month for the following nine months, the Respondents shall pay $500.00 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; b. On March 1, 2000, the Respondents shall pay $662.00 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; -3- C. On April 1, 2000, the Respondent shall pay $663.50 to the Commonwealth to be used as restitution to John Rowe, Jr., and Joe Ley; d. On May 1 and June I, 2000, the Respondents shall pay $500.00 to the Commonwealth. VI. In the event that the Respondents fail to make any one payment within thirty (30) days after the due date of the payment, or if the Respondents are late by five (5) or more days in making any two payments, regardless of whether they are consecutive or non- consecutive, the Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance immediately due and owing. Upon written demand, the Respondents immediately shall make full payment of the accelerated amount. Failure to so pay the accelerated amount shall be deemed a violation of this Assurance and shall subject the Respondents to all of the sanctions and penalties provided for by this Assurance and otherwise by law. VII. The Respondents stipulate that, in the event that Neoclassic Neon, Inc., John Hall or Carol Hall files for protection under the United States Bankruptcy Code, the debts incurred herein shall be considered by them to be nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (7). The Respondents further stipulate that the consumer restitution encompassed herein represents debts entitled to treatment under 11 U.S.C. § 507(a)(6) as a consumer priority. VIII. All monies owed by the Respondents under this Assurance shall be paid by certified check, cashier's check or money order, made payable to the Commonwealth of Pennsylvania, and delivered to the Bureau of Consumer Protection, 132 Kline Plaza, Harrisburg, PA 17104. -4- IX. This Court shall maintain jurisdiction over the subject matter of this Assurance of Voluntary Compliance and over the Respondent for the purpose of enforcing this Assurance. X. Provided that nothing contained herein shall be construed to waive any individual right of action by a consumer or a local, state, federal, or other governmental entity. NOW THEREFORE, the Commonwealth and the Respondent hereby stipulate that this Assurance of Voluntary Compliance shall have the same force and effect as a permanent injunction issued under § 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary Compliance shall be sufficient cause for the Attorney General of this Commonwealth to seek penalties as provided in §§ 201-8, 201-9 and 201-9.1 of the Consumer Protection Law and any other equitable relief which the Court deems necessary or proper. Witness the following signatures this day of A?fil,?1999. FOR THE PLAINTIFF: BY: D. MICHAEL F1 H R D. MICHAEL FISHER ATTORNEY GENERAL FOR RESPONDENT NEOCLASSIC: NEON, INC. BY: IL 1/d/ 4 R. HALL, OWNER NEOCLASSIC NEON, INC. BY: DOUGLAS P YA 1G R FOR RESPONDENT JOHN HALL: DOUGLAS P. YAUGER CHIEF DEPUTY ATTORNEY GENERAL BY V JO R. HAL -5- BY: _ PPUL ITTON TTORNEY GENERAI. ATTORNEY I.D. No. 58131 BY: MARK S. STEWART DEPUTY ATTORNEY GENERAL ATTORNEY I.D. No. 75958 OFFICE OF ATTORNEY GENERAL 132 KLINE PLAZA HARRISBURG, PA 17104 717-787-7109 D:lMyFila\FORMS\AVC\Nwclassic nwn.wpd042099 FOR RESPONDENT CAROL HALL: BY: LuJtr? ?a. f? CAROL A. HALL -6- V IA IJ ?U cr, i? t r(, ?m O ? '?411 ' w