This whole thing if outrageous. Not only have you been ripped off, but she is accusing you of being a liar...(maybe you cut the 2 yd piece of fabric).
I would definately file a formal complaint with the BBB, and the State Attorney General.
I also would be very vocal with my sewing friends/groups.
I am so sorry you had to run into such a person. :evil:
You could always call your local news station consumer advocate and ask them if they would be intersted in doing a report in the field, in front of the quilt shop. It would be worth the drive :!: