STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

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Todd Tate
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1 STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: CHUCK S APPLIANCE AND TV. INC. ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant to the provisions of Chapter 501, Part II, Florida Statutes, the OFFICE OF THE ATTORNEY GENERAL has investigated CHUCK S APPLIANCE AND TV, INC. and RANDELL DONATH (hereinafter, RESPONDENTS ), in connection with alleged violations of Florida Statute (price gauging) and violations of Florida Statute 501 part II (Deceptive and Unfair Trade Practices) as to the sale of generators during the declared state of emergency issued by the Governor of the State of Florida on August 10, 2004 and extended thereafter by subsequent executive orders. (See Executive Orders , , , , , and 05-13). This Assurance of Voluntary Compliance (hereinafter, AVC ), is solely intended to resolve the investigation into whether RESPONDENTS, or their officers, directors, and employees, engaged in price gauging and unfair and deceptive trade practices in the sales of generators during the declared state of emergency referenced above, and for the purpose of resolution of this matter only. The Attorney General, by the signature of his Deputy, affixed hereto, does in this matter accept this AVC in termination of this investigation, pursuant to Section (6), Florida Statutes (2004), and by virtue of the authority vested in the Office of the Attorney General by said statute.

2 1. NO ADMISSION OF WRONGDOING: RESPONDENTS make no admission that they engaged in any wrongdoing or committed any violation of Chapters or 501, Part II, Florida Statutes. This AVC contains no findings of fact and no conclusions of law. INJUNCTIVE TERMS 2. NO FUTURE VIOLATIONS: RESPONDENTS agree that they and their subsidiaries, affiliates, officers, directors, partners, employees, agents, servants, contractors, representatives, successors, assigns, and all persons, corporations, partnerships, and other entities acting in concert or participating with them will refrain from the following acts and practices: a) Violating the provisions of Chapter 501, Part II, Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act (2004) (hereinafter, FDUTPA ); b) Price gouging during a declared state of emergency, as that term is defined in Section (3), Florida Statutes (2003); and c) Selling generators to consumers at any time. 3. NO GOVERNMENTAL APPROVAL OF MARKETING PRACTICES:. The Attorney General has not approved any of RESPONDENTS past, current or proposed sales or marketing practices and no portion of this AVC shall be construed as such approval. MONETARY TERMS 4. DELIVERY OF CHECKS: Upon their partial execution of this AVC, RESPONDENTS have delivered to Senior Assistant Attorney General Peter M. Bassaline, two checks, drawn upon an attorney s trust account, totaling Sixty One Thousand One Hundred Sixty Nine Dollars and Eighty Cents ($61,169.80), made payable as follows: 2

3 (a) An attorney s trust fund check for Fifty Thousand Dollars ($50,000.00) made payable to the Legal Affairs Revolving Trust Fund; and (b) An attorney s trust fund check for Eleven Thousand One Hundred Sixty Nine Dollars and Eighty Cents ($11,169.80) made payable to the Legal Affairs Revolving Escrow Trust Fund; The Sixty One Thousand One Hundred Sixty Nine Dollars and Eighty Cents ($61,169.80) in funds shall be referred to hereinafter as the Settlement Funds. Upon receipt of the partially executed AVC and accompanying Settlement Funds, Peter M Bassaline will sign the AVC and then forward it to the Deputy Attorney General, together with the Settlement Funds. The Deputy Attorney General has the final authority to approve or disapprove the entry of the AVC. Should the Deputy Attorney General or his authorized designee decline to authorize and execute this AVC, then, the Settlement Funds would be promptly returned. 5. BREAKDOWN OF CASH CONTRIBUTIONS: a) Fifty Thousand Dollars ($50,000.00) of the Settlement Funds shall be immediately paid to the State of Florida, Office of the Attorney General, as reimbursement of its attorney s fees and costs of investigation. b) Eleven Thousand One Hundred Sixty Nine Dollars and Eighty Cents ($11,169.80) of the Settlement Funds shall first be applied toward consumer restitution (hereinafter, RESTITUTION FUNDS ), for those consumers who have filed affidavits with the Office of the Attorney General as of the date of the execution of this AVC. The remaining RESTITUTION FUNDS shall then be disbursed on a pro rata basis among all consumers who subsequently file claims with the Office of the Attorney General within 30 days of the execution 3

4 of this AVC (hereinafter referred to as the Bar Date ). After the Bar Date, any remaining RESTITUTION FUNDS will be paid to the Florida Hurricane Relief Fund. The Office of the Attorney General will determine the amount and validity of each consumer restitution claim, in its sole discretion. C) The RESPONDENTS interest in the Settlement Funds shall fully and completely divest when the AVC is fully executed. No portion of the Settlement Funds shall be returned to any of the RESPONDENTS if the AVC has been fully executed. 6. NO PENALTIES: In consideration for the fulfillment of the various injunctive and monetary obligations set forth above, no penalties are to be imposed under this AVC. However, the Office of the Attorney General reserves the right to seek Chapter 501 penalties for any future violation(s) of the injunctive terms contained within this agreement. Additionally, the Attorney General reserves the right to seek attorneys fees and costs upon any future noncompliance. 7. CLOSURE OF INVESTIGATION: Upon entry of this AVC, the Office of the Attorney General agrees to close its investigation into the activities of RESPONDENTS concerning the following issue: whether RESPONDENTS engaged in price gauging or deceptive and unfair trade practices under FDUTPA concerning the sales of generators to consumers during the declared state of emergency issued by the Governor of the State of Florida on August 10, 2004 and extended thereafter by subsequent executive orders. (See Executive Orders , , , , , and 05-13). 8. FUTURE VIOLATIONS: Notwithstanding any other provision of this AVC, the parties further recognize that future violations of this AVC, or of Florida law, may subject RESPONDENTS or their officers, directors and employees, to any and all civil penalties and 4

5 sanctions provided by law. 9. STATUS OF CORPORATE ENTITY: The name of the corporate entity herein shall not be changed, nor shall the corporation seek bankruptcy protection or dissolution in an attempt to avoid the terms and conditions of this Agreement or liability for payments to the Office of the Attorney General Revolving Trust Fund or Escrow Trust Fund 10. PRESERVATION OF PRIVATE CLAIMS: Nothing herein shall be construed as a waiver of any private rights, causes of action, or remedies of any private person against RESPONDENTS or their officers, directors, or employees. 11. CONSTRUCTION: The parties jointly participated in the negotiation of the terms which are articulated within this AVC. No provision of this AVC shall be construed for or against either party on the grounds that one party or another was more heavily involved in the preparation of the AVC. 12. NOTICES: All notices required hereunder shall be sufficient if given as follows: As to the Attorney General: Office of the Attorney General Attn: Peter Bassaline Assistant Attorney General 1515 North Flagler Drive, Suite 900 West Palm Beach, Florida, As to Respondents Thomas Ali, Esq. Chuck s Appliance and TV., Inc., 6650 West Indiantown Rd. Suite 200 and Randell Donath: Jupiter, FL EFFECTIVE DATE: This AVC shall become effective, subject to the provisions of section (4) of this AVC, upon its execution; i.e., its execution by all persons whose signatures appear below. This document may be signed in counterpart and by facsimile. 5

6 IN WITNESS WHEREOF, RESPONDENTS have caused this AVC to be executed as a true act and deed. Signed this day of, CHUCK S APPLIANCE AND TV. INC. By: Randell Donath Title: President STATE OF FLORIDA) COUNTY OF PALM BEACH ) BEFORE ME, this day of, 2005, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Randell Donath, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on behalf of CHUCK S APPLIANCE AND TV, INC. NOTARY PUBLIC (print, type or stamp commissioned name of Notary Public) Personally known or Produced Identification (check one) Type of Identification Produced: _ 6

7 Signed this day of, RANDELL DONATH Individually STATE OF FLORIDA) COUNTY OF PALM BEACH ) BEFORE ME, this day of, 2005, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared RANDELL DONATH, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated. NOTARY PUBLIC (print, type or stamp commissioned name of Notary Public) Personally known or Produced Identification (check one) Type of Identification Produced: _ Signed this day of, Thomas Ali, Esq West Indiantown Rd. Suite 200 Jupiter, FL ATTORNEY FOR RANEDLL DONATH and CHUCK S APPLIANCE AND TV. INC. 7

8 Signed this day of, Office of the Attorney General Peter M Bassaline Assistant Attorney General Florida Bar # North Flagler Drive Suite 900 West Palm Beach, Florida, (FAX) Accepted this day of, George LeMieux Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL The Capitol Tallahassee, Florida (850)

STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS 5 STAR INVESTMENTS, INC. D/B/A AG# L BEST WESTERN OF VERO BEACH

STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: 5 STAR INVESTMENTS, INC. D/B/A AG# L04-3-1112 BEST WESTERN OF VERO BEACH ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant to the provisions