In response to your letter dated January 7, 2013, Dick’s Sporting Goods, inc. (“Dìck's") denies your allegation that breached its contract with Mr. XXXXX, violated the Uniform Commercial Code and Texas Deceptive Trade Practice Act ("DTPA”. Dick's did cancel the special order placed and paid for by Mr. XXXXX for a Troy AR-15. The decision to cancel the special orders for the Troy AR-15 was a difficult decision that was caused by a number of events that had little control over.
First, we offered the Troy AR-15 at a competitive price on Black Friday. At the time that we decided to offer the Troy as a Black Friday special, we purchased from Troy industries inventory of the firearm in a quantity that we believed to be sufficient to meet the anticipated demand. had never offered a gun to the Troy AR-15 (a modern sporting rifle) as a Black Friday special. So, we had no history to use when making our inventory decision. Unfortunately, the demand for the Troy AR-15 was significantly greater than we anticipated.
Second, due to the length of time required to complete a firearm transaction, during the week leading up to Slack Friday we pre-sold the Troy AR-15 to reduce the number of transactions that would occur at our store during the Black Friday weekend. It was during the pre-sale that we realized we may have underestimated the demand for the AR-15, and we decided based on conversations with Troy industries that, if necessary, we would accept special orders of the Troy AR-15 during the course of the weekend. Our special order process allows a customer to order and pay for a product in our store. Then the special order is sent to a manufacturer or distributor who fulfills the special order by sending the product directly to the stores, at which time the customer is notified to pick up the special order. Based on representation made by Troy industries, we began to accept special orders of the Troy AR-15's and submitted the orders to Troy Industries for manufacturing. During the weeks following Black Friday, Troy Industries fulfilled a number of the special orders.
Third, on December 14, 2012, the tragic events at Newton, CT occurred. On December 17, 2012, out of respect for the victims and their families, suspended the sale of modern sporting rifles in all of our stores chain wide. We determined at that time that, if possible, we would fulfill outstanding special orders for modern sporting rifles, including the Troy AR-15, that had been placed and paid for in full prior to our suspension.
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Fourth, at about the same time, Troy Industries informed us that they stopped manufacturing the Troy AR-15 due to a shortage in a component part, the bolt. According to Troy Industries, in order to purchase the bolt to complete the manufacturing of the Troy AR-15 to the outstanding special orders, Troy Industries needed a decision from us to our future plans related to modern sporting rifles. In light of very recent decision to suspend the of modern sporting rifles, and the uncertain regulatory environment, Dick's was not prepared to determine if or when its suspension would end and therefore could not provide any assurances to Troy industries. 0n December 21, 2012, Troy Industries informed Dick’s that it was unable to complete the manufacturing of the Troy AR-15's and fulfill our customers’ special orders.
Based on all of the foregoing, on December 21, 2012, Dick's sent letters to all customers with unfulfilled Troy special orders informing the customers that we cancelled their orders and either issued a full refund on their credit or debit card or, if the customer paid cash, included a check for the cost of the Troy AR-15. We also enclosed a $100 Dick's Gift Card as a customer accommodation. Our actions to inform customers of our inability to fulfill their special orders and provide a full refund were done promptly following confirmation from Troy Industries that it was unable to complete the manufacturing of any more Troy AR-15's. As such, Dick's denies that it breached its contract with Mr. XXXXX or violated the Uniform Commercial Code.
ln addition, you letter alleges that Dick's violated various provisions of the DTPA, but does not provide specific information as to what misrepresentations or omissions were made by Dicks. There is no information as to what warranties were misrepresented, what sponsorships were misrepresented, what information was omitted, and so forth. As such, we cannot respond to your broad allegation related to the DTPA without specific details as to the alleged violation.