in the record industry, this pertains to a category of merchandise that never seems to leave the stores. either the album's a complete flop and doesn't sell well, or too many copies were distributed. so the company will buy back the cds, lps, or cassettes and alter the packaging in some distinguishable way, either cutting or marking the casing or sleeve (this is akin to those books you can buy in bargain bins that have a hole punched into the cover, but i don't know if it's for the exact same reason). they'll then sell these copies, at a discount of course, back to the music stores to be offered to discriminating (ok, just plain cheap) customers. the reason they mark the merchandise is to distinguish discount items from regular-priced music, avoiding the problem of customers returning their cds and getting a full refund.


http://www.geocities.com/SunsetStrip/Alley/4370/yktrfaq.html told me so...

Cut"-out` (k?t"out`), n. (a) Telegraphy

A species of switch for changing the current from one circuit to another, or for shortening a circuit.

(b) Elec.

A divice for breaking or separating a portion of circuit.

 

© Webster 1913.

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