I recently bought a chandelier that came with a two-prong plug. The store I bought it at told me I can simply cut off the plug, split the wires, strip them and then make the appropriate connections. While this is a reputable store, I am not convinced that this is safe. Please advise.

As long as it came with a two wire plug, you can connect it to a ceiling outlet with two wire. The fixture bar can be grounded thou.