[Federal Register: March 5, 1999 (Volume 64, Number 43)] [Notices] [Page 10649-10651] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr05mr99-41] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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