[Federal Register Volume 64, Number 43 (Friday, March 5, 1999)]
[Notices]
[Pages 10649-10651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5408]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 99-C0004]
Carter Brothers Manufacturing Co., Inc., a Corporation;
Provisional Acceptance of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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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
Carter Brothers Manufacturing Co., Inc., a corporation, containing a
civil penalty of $125,000.
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
[[Page 10650]]
the Office of the Secretary by March 20, 1999.
ADDRESSES: Person wishing to comment on this Settlement Agreement
should send written comments to the Comment 99-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, 1346.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: March 1, 1999.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement and Order, entered into between Carter
Brothers Manufacturing Co., Inc. (``Carter Brothers'' or
``Respondent''), and the staff of the Consumer Product Safety
Commission (``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.
The Parties
2. The staff is the staff of the Consumer Product Safety Commission
(``Commission''), an independent federal regulatory agency of the
United States government, established by Congress pursuant to section 4
of the Consumer Product Safety Act ``(CPSA''), as amended, 15 U.S.C.
2053.
3. Respondent Carter Brothers is a corporation organized and
existing under the laws of the State of Alabama with its principal
corporate offices located in Brundidge, Alabama. Respondent is a
manufacturer of go-carts and lawn mowers.
Staff Allegations
4. Section 15(b) of the CPSA, 15 U.S.C. 2064(b) requires a
manufacturer of a consumer product who, inter alia, obtains information
that reasonably supports the conclusion that the product contains a
defect which could create a substantial product hazard or creates an
unreasonable risk of serious injury or death, to immediately inform the
Commission of the defect or risk.
5. Between October 1992 and March 1995, Carter Brothers,
manufactured and sold, approximately 1,700 model 2535 go-carts (``go-
carts(s)''). A go-cart is a ``consumer product'' and Carter Brothers is
a ``manufacturer'' of a ``consumer product,'' which is ``distributed in
commerce'' as those terms are defined in sections 3(a)(1), (4), (11) of
the CPSA, 15 U.S.C. 2052(a)(1), (4), (11).
6. The go-carts are defective because there is an open space
between the engine and the belt-chain guard, which covers the drive
shaft mechanism. Hair and clothing entrapment is possible in the open
space around the belt-chain guard, which could lead to serious injury
or death.
7. On July 26, 1994, Carter Brothers learned of an incident in
which a nine-year old girl was killed when her hair became entangled in
the drive shaft mechanism of the go-cart.
8. On July 28, 1994, Carter Brothers became aware of another hair
entanglement incident involving the go-cart in which a young girl
sustained a fractured skull.
9. Between August 1994 and February 1996, Carter Brothers made
several design and material changes to the go-cart and engaged in a
corrective action and notice program in an attempt to address the
problem in question.
10. Not until May 17, 1996, after receiving a letter from the staff
requesting generic information about go-dart entrapment incidents, did
Carter Brothers provide any information about the go-carts. However,
the information provided by Respondent at this time was very limited in
nature.
11. Although Carter Brothers had obtained sufficient information to
reasonably support the conclusion that these go-carts 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. This is a violation of section 19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
12. Carter Brother's failure to report to the Commission, as
required by section 15(b) of the CPSA, was committed ``knowingly,'' as
that term is defined in section 20(d) of the CPSA, and Respondent is
subject to civil penalties under section 20 of the CPSA.
Response of Carter Brothers
13. Carter Brothers denies it violated the CPSA.
Agreement of the Parties
14. The Commission has jurisdiction over this matter under the
CPSA, 15 U.S.C. 2051-2084.
15. Carter Brothers agrees to pay to the Commission a civil penalty
in the amount of one hundred twenty five thousand dollars ($125,000)
payable as follows: $41,666.66 within 20 days of the service of the
Final Order upon Respondent, $41,666.66 three months thereafter, and an
additional $41,666.66 three months after that.
16. Respondent knowingly, voluntarily and completely waives any
rights it may have (1) to an administrative or judicial hearing, (2) to
judicial review or other challenge or contest of the validity of the
Commissions's Order, (3) to a determination by the Commission as to
whether Respondent failed to comply with section 15(b) of the CPSA, as
alleged, (4) to a statement of findings of fact and conclusions of law,
and (5) to any claims under the Equal Access to Justice Act.
17. Upon provisional acceptance of this Settlement Agreement and
Order by the Commission, this Settlement Agreement and Order shall be
placed on the public record and shall be published in the Federal
Register in accordance with the procedures 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
Settlement 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).
18. This Settlement Agreement and Order becomes effective upon its
final acceptance by the Commission and service upon Respondent.
19. 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.
20. The provisions of this Settlement Agreement and Order shall
apply to Respondent, its successors and assigns, agents,
representatives, and employees, directly or through any corporation,
subsidiary, division, or other business entity, or through any agency,
device or instrumentality.
21. Carter Brothers agrees to immediately inform the Commission if
it learns of any additional incidents involving the go-carts, or any
additional information regarding the alleged defect and hazard
identified in paragraph six, herein.
22. Nothing in this Settlement Agreement and Order shall be
construed to preclude the Commission from pursuing a corrective action
or other relief not described above.
23. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings, representations, or interpretations
made
[[Page 10651]]
outside of this Settlement Agreement and Order may not be used to vary
or contradict its terms.
Dated: January 5, 1999.
Stuart W. Arn,
President, Carter Brothers Mfg. Co., Inc.
The Consumer Product Safety Commission
Alan H. Schoem,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
Dated: January 22, 1999.
Ronald G. Yelenik,
Trial Attorney, Legal Division, Office of Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
Carter Brothers Manufacturing Co., Inc., a corporation, and the staff
of the Consumer Product Safety Commission, and the Commission having
jurisdiction over the subject matter and over Carter Brothers
Manufacturing Co., Inc., and it appearing the Settlement Agreement is
in the public interest, it is
Ordered, that the Settlement Agreement be and hereby is accepted,
and it is
Ordered, that Carter Brothers Manufacturing Co., Inc. shall pay to
the order of the U.S. Treasury a civil penalty in the amount of one
hundred twenty five thousand dollars ($125,000), payable as follows:
$41,666.66 within 20 days of the service of the Final Order upon
Respondent, $41,666.67 three months thereafter, and an additional
$41,666.67 three months after that.
Upon failing to make a payment or upon making a payment that is at
least five days late, the outstanding balance of the civil penalty
shall become due and payable by Carter Brothers Manufacturing Co.,
Inc., and the interest on the outstanding balance shall accrue and be
paid at the federal legal rate of interest under the provisions of 28
U.S.C. sections 1961 (a) and (b).
Further ordered, Carter Brothers Manufacturing Co., Inc. shall
immediately inform the Commission if it learns of any additional
incidents involving the go-carts, or any additional information
regarding the alleged defect and hazard identified herein.
Provisionally accepted and Provisional Order issued on the 1st
day of March, 1999.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 99-5408 Filed 3-4-99; 8:45 am]
BILLING CODE 6355-01-M