From Musician's Business Dictionary
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Record units sold for dirt cheap—or nearly given away—when a record company makes too many units, is not selling the units up to the planned budget, or receives too many returns they have no use for. Schlock units earn no royalties for an artist, but an artist may negotiate to restrict the record company from selling units as schlock . Also see “Scrap”.

Donald Passman, All You Need to Know About the Music Business: Revised and Updated, Sixth Edition (New York: Free Press, 2006), 172-173