[Federal Register Volume 62, Number 16 (Friday, January 24, 1997)]
[Notices]
[Pages 3664-3665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1799]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 97-C0004]


NuTone, Inc., a Corporation; Provisional Acceptance of a 
Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional Acceptance of a Settlement Agreement under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
NuTone, Inc., a corporation.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by February 10, 1997.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 97-C0004, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Ronald G. Yelenik, Trial Attorney, Office of Compliance and 
Enforcement, Consumer Product Safety Commission, Washington, DC 20207; 
telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: January 21, 1997.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. This Settlement Agreement and Order, entered into between 
NuTone, Inc., a corporation (hereinafter, ``NuTone''), and the staff of 
the Consumer Product Safety Commission (hereinafter, ``staff''), 
pursuant to the procedures set forth in 16 CFR 1118.20, is a compromise 
resolution of the matter described herein, without a hearing or 
determination of issues of law and fact.

I. The Parties

    2. The ``Staff'' is the staff of the Consumer Product Safety 
Commission (hereinafter, ``Commission''), an independent federal 
regulatory agency of the United States Government, established by 
Congress pursuant to section 4 of the Consumer Product Safety Act 
(hereinafter, ``CPSA''), as amended, 15 U.S.C. 2053.
    3. Respondent NuTone is a corporation organized and existing under 
the laws of the State of Delaware with its principal corporate offices 
located in Cincinnati, Ohio.

II. Jurisdiction

    4. Between December 1989 and October 1993, NuTone manufactured and 
sold certain Model ST-1000, Stereo Cassette Players (hereinafter, ``ST-
1000'' or the ``Stereo(s)'') to retail stores, electrical distributors, 
and home construction companies nationwide. The ST-1000 is a ``consumer 
product'', and NuTone is a ``manufacturer'' of a ``consumer product'' 
which is ``distributed in commerce'', as those terms are defined in 
sections 3(a)(1), (4) and (11) of the CPSA, 15 U.S.C. 2052(a)(1), (4) 
and (11).

III. The Product

    5. The ST-1000 is a wall mounted AM/FM stereo receiver and cassette 
tape player. It consists of a master unit and additional speakers which 
can be installed in various rooms of a house.

IV. Staff Allegations

    6. The Stereo contains a defect which could create a substantial 
product hazard and creates an unreasonable risk of serious injury in 
that components in the unit's power supply board may overheat, thereby 
creating a potential fire hazard.
    7. On or about March 23, 1993, NuTone first became aware of a 
report of a fire incident involving the Stereo.
    8. Between March 23, 1993 and June 6, 1995, the date NuTone 
reported to the Commission, NuTone learned of approximately twelve fire 
or smoke damage incidents involving the ST-1000.
    9. Although NuTone obtained sufficient information to reasonably 
support the conclusion that the Stereo, described in paragraph 5 above, 
contained a defect which could create a substantial product hazard, or 
created an unreasonable risk of serious injury or death, it failed to 
report such information to the Commission as required by section 15(b) 
of the CPSA, 15 U.S.C. 2064(b). This failure to furnish information 
required by section 15(b) of the CPSA is a knowing violation of section 
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), and subjects NuTone to 
civil penalties under section 20 of the CPSA, 15 U.S.C. 2069.

V. Response of NuTone

    10. There have been no allegations or claims of injury associated 
with this product. NuTone denies that its ST-1000 contains a defect 
which creates or could create a substantial product hazard within the 
meaning of section 15(a) of the CPSA, 15 U.S.C. 2064(a), or creates an 
unreasonable risk of serious injury or death, and further denies an 
obligation to report information to the Commission under section 15(b) 
of the CPSA, 15 U.S.C. 2064(b), with respect to the Stereo.

VI. Agreement of the Parties

    11. The Commission has jurisdiction in this matter for proposes of 
entry and enforcement of this Settlement Agreement and Order.
    12. This Agreement is in settlement of the Staff's allegations and 
does not constitute an admission by NuTone or a determination by the 
Commission that the ST-1000 contains a defect which creates or could 
create a substantial product hazard within the meaning of section 15(a) 
of the CPSA or that NuTone violated the reporting provisions of section 
15(b) of the CPSA.
    13. NuTone knowingly, voluntarily and completely waives any rights 
it may have (1) to an administrative or judicial hearing with respect 
to the Commission's claim for a civil penalty, (2) to judicial review 
or other challenge or contest of the validity of the Commission's 
action with regard to its claim for a civil penalty, (3) to a 
determination by the Commission as to whether a violation of section 
15(b) of the CPSA, 15 U.S.C. 2064(b), has occurred, (4) to a statement 
of findings of fact and conclusions of law with regard to the 
Commission's claim for a

[[Page 3665]]

civil penalty, and (5) to any claims under the Equal Access to Justice 
Act.
    14. This Agreement becomes effective upon its final acceptance by 
the Commission and service of the incorporated Order upon Respondent.
    15. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, the Commission shall place this Agreement and 
Order on the public record and shall publish it in the Federal Register 
in accordance with the procedure set forth in 16 CFR 1118.20(e). If the 
Commission does not receive any written request not to accept the 
Settlement Agreement and Order within 15 days, the Agreement and Order 
shall be deemed finally accepted on the 16th day after the date it is 
published in the Federal Register, in accordance with 16 CFR 
1118.20(f).
    16. Upon final acceptance of this Settlement Agreement and Order, 
the Commission shall issue the attached Order.
    17. The provisions of this Settlement Agreement and Order shall 
apply to NuTone and its successors and assigns.
    18. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
this matter shall be treated as if a complaint had issued, and the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    19. NuTone agrees to inform the Commission if it learns of any 
additional reports of fire or smoke damage involving the ST-1000.
    20. This Agreement may be used in interpreting the Order. 
Agreements, understandings, representations, or interpretations not 
contained in this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.

    Dated: January 17, 1997.

NuTone, Inc., a Corporation

Glen L. Bowler,
Treasurer, NuTone, Inc.

The Consumer Product Safety Commission

David Schmeltzer,
Associate Executive Director, Office of Compliance.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of 
Compliance.
    Dated: December 17, 1996.
Ronald G. Yelenik,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance.

Order

    Upon consideration of the Settlement Agreement between Respondent 
NuTone, Inc., a corporation, and the staff of the Consumer Product 
Safety Commission, and the Commission having jurisdiction over the 
subject matter and NuTone, Inc., and it appearing the Settlement 
Agreement is in the public interest, it is
    Ordered, that the Settlement Agreement be and hereby is accepted, 
as indicated below, and it is
    Further Ordered, that within ten days of the service of the Final 
Order upon Respondent, NuTone, Inc. shall pay to the order of the U.S. 
Treasury a civil penalty in the amount of one hundred and ten thousand 
dollars ($110,000).

    Provisionally accepted and Provisional Order issued on the 21st 
day of January, 1997.

    By order of the Commission.

Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-1799 Filed 1-23-97; 8:45 am]
BILLING CODE 6355-01-M