[Federal Register: April 14, 1995] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 95-C0010] Giant Bicycle 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. ----------------------------------------------------------------------- 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)- (h). Published below is a provisionally-accepted Settlement Agreement with Giant Bicycle 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 May 1, 1995. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 95-C0010, Office of the Secretary, Consumer Product Safety Commission, Washington, D.C. 20207. FOR FURTHER INFORMATION CONTACT: Melvin I. Kramer, Trial Attorney, Office of Compliance and Enforcement, Consumer Product Safety Commission, Washington, D.C. 20207; telephone (301) 504-0626. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. [[Page 19028]] Dated: April 7, 1995. Sadye E. Dunn, Secretary. Settlement Agreement and Order 1. Giant Bicycle, Inc. (hereinafter, ``Giant''), a corporation, enters into this Settlement Agreement (hereinafter, ``Agreement'') with the staff of the Consumer Product Safety Commission, and agrees to the entry of the Order described herein. The purpose of the Agreement and Order is to settle the staff's allegations that Giant knowingly caused the introduction into commerce of certain banned hazardous substances, namely bicycles, that did not comply with the Commission's Requirements for Bicycles, 16 CFR Part 1512, in violation of section 4(a) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C. Sec. 1263(a). I. Jurisdiction 2. The Commission has jurisdiction over Giant and the subject matter of this Settlement Agreement pursuant to sections 3(a)(1) and 30(a) of the Consumer Product Safety Act (hereinafter, ``CPSA''), 15 U.S.C. Secs. 2052(a)(1) and 2079(a), and sections 2(f)(1)(D), 4(a) and 5(c) of the FHSA, 15 U.S.C. Secs. 1261(f)(1)(D), 1263(a) and 1264(c). II. The Parties 3. The ``staff'' is the staff of the Consumer Product Safety Commission, an independent regulatory commission of the United States established pursuant to section 4 of the CPSA, 15 U.S.C. Sec. 2053. 4. Giant is a corporation organized and existing under the laws of the State of Virginia with its principal corporate offices located at 475 Apra St., Rancho Dominguez, CA 90220. Giant is engaged, among other things, in the business of importing and selling in the United States children's bicycles. III. Allegations of the Staff 5. From at least October 1993, to January 1995, Giant introduced into interstate commerce approximately 1,000 of several models of bicycles. These bicycles failed to comply with various sections of the Commission's Requirements for Bicycles, (16 CFR Part 1512) including, but not limited to, violations of Sec. 1512.16 (requirements for reflectors) and Sec. 1512.15 (requirements for seats). 6. Because these bicycles failed to meet the requirements of the Requirements for Bicycles, each of them is a banned hazardous substance under 16 CFR 1500.18(a)(12) of the FHSA regulations and section 2(q)(1)(A) of the FHSA, 15 U.S.C. 1261(q)(1)(A). The knowing introduction or delivery for introduction into interstate commerce, or the receipt in interstate commerce and the delivery or proffered delivery thereof for pay, of these banned hazardous substances by Giant are prohibited acts pursuant to section 4 (a) and (c) of the FHSA, 15 U.S.C. Sec. 1263 (a) and (c) and subjects the firm to civil penalties under section 5(c) of the FHSA, 15 U.S.C. 1264(c)(1). IV. Response of Giant 7. Giant denies the allegations of the staff that it has knowingly introduced or delivered for introduction into commerce, or that it received in interstate commerce and delivered or proffered for delivery thereof for pay the aforesaid bicycles, or that it has violated the FHSA in any way. V. Agreement of the Parties 8. The Consumer Product Safety Commission has jurisdiction over Giant and the subject matter of this Settlement Agreement and Order under the following acts: Consumer Product Safety Act (15 U.S.C. Sec. 2051 et seq.), and the Federal Hazardous Substances Act, 15 U.S.C. 1261 et seq. 9. Giant agrees to pay to the Commission the amount of Eighty-Five Thousand Dollars ($85,000), as set forth in the attached Order and incorporated herein by reference, and further agrees to take the agreed upon corrective actions regarding the allegedly violative products which are the subject of this Agreement. 10. The Commission does not make any determination that Giant knowingly violated the FHSA. The Commission and Giant agree that this Agreement is entered into for the purposes of settlement only. 11. Upon final acceptance of this Settlement Agreement by the Commission and issuance of the Final Order, Giant knowingly, voluntarily and completely, waives any rights it may have in this matter (1) to an administrative or judicial hearing, (2) to judicial review or other challenge or contest of the validity of the Commission's actions, (3) to a determination by the Commission as to whether Giant failed to comply with the FHSA as aforesaid, and (4) to a statement of findings of fact and conclusions of law. 12. For purposes of section 6(b) of the CPSA, 15 U.S.C. Sec. 2055(b), this matter shall be treated as if a complaint had been issued; and, the Commission may publicize the terms of the Settlement Agreement and Order. 13. 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)-(h). 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 will be deemed finally accepted on the 16th day after the date it is published in the Federal Register. 14. The parties further agree that the Commission shall issue the attached Order, incorporated herein by reference; and that a violation of the Order shall subject Giant to appropriate legal action. 15. Agreements, understandings, representations, or interpretations made outside of this Settlement Agreement and Order may not be used to vary or to contradict its terms. 16. The provisions of the Settlement Agreement and Order shall apply to Giant and each of its successors and assigns. Dated: April 5, 1995. Respondent Giant Bicycle, Inc. By: Nicholas Andrade, Senior Vice President, Giant Bicycle, Inc. 475 Apra St., Rancho Dominguez, CA 90220. Commission Staff David Schmeltzer, Assistant Executive Director, Office of Compliance. Eric L. Stone, Acting Director, Office of Compliance, Division of Administrative Litigation. Dated: April 6, 1995. By: Melvin I. Kramer, Trial Attorney, Office of Compliance, Division of Administrative Litigation. Provisionally accepted and Provisional Order issued on the 7th day of April, 1995. By Order Of The Commission: Sadye E. Dunn, Secretary, Consumer Product Safety Commission. Order Upon consideration of the Settlement Agreement entered into between respondent Giant Bicycle, Inc., a corporation, and the staff of the Consumer Product Safety Commission; and the Commission having jurisdiction over the subject matter and Giant; and it appearing that the Settlement Agreement is in the public interest, it is Ordered, that the Settlement Agreement be and hereby is accepted; and it is Further Ordered, that within 20 days of service of this final Order upon Giant, Giant shall pay to the Order of the [[Page 19029]] Consumer Product Safety Commission the amount of Eighty-Five Thousand Dollars ($85,000). [FR Doc. 95-9046 Filed 4-13-95; 8:45 am] BILLING CODE 6355-01-M