Did you order online or from a bike shop. I am not familiar enough with Electra's policies so I do not know if they are only sold through LBS's or not.
Does your bike shop (assuming you have one) have any answers? They should be going to bat for you, assuming you bought it from a shop. They are responsible for getting it adjusted properly so it sounds like at least part of your complaint is directed at them.
And, it's possible the entire problem is the shop but it's hard to say...
Stopping dead without 'gliding' (coasting) sounds like brakes that are way too tight. Again, hard to diagnose from afar but I've ridden a Townie 21 and it was a very nice bike that coasted easily.
Contact the company directly? If not (and if a number is available) it's worth a try.
Certainly contact the Better Business Bureau in your area or if you feel strongly enough, you can always contact your state's Attorney General office.