[Federal Register: January 17, 2001 (Volume 66, Number 11)]
[Notices]               
[Page 3997-3999]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja01-62]                         

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 01-C0003]

 
Tensor 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 
Sec. 1118.20. Published below is a provisionally-accepted Settlement 
Agreement with Tensor Corporation, continuing 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 the Office of the Secretary by February 1, 2001.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 01-C0003, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT: William J. Moore, Jr., Trial Attorney, 
Office of Compliance and Enforcement, Consumer Product Safety 
Commission, Washington, D.C. 20207; telephone (301) 504-0626, 1348.

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

    Dated: January 10, 2001.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. This Settlement Agreement, made by and between the staff (``the 
staff'') of the U.S. Consumer Product Safety Commission (the 
``Commission'') and Tensor Corporation (``Tensor''), a corporation, in 
accordance with 16 CFR 1118.20 of the Commission's Procedures for 
Investigations, Inspections, and Inquiries under the Consumer Product 
Safety Act (``CPSA''), is a settlement of the staff allegations set 
forth below.

The Parties

    2. The Commission is an independent federal regulatory agency 
responsible for the enforcement of the Consumer Product Safety Act, 15 
U.S.C. 2051-2084.
    3. Tensor is a corporation organized and existing under the laws of 
the Commonwealth of Massachusetts. Its principal office is located at 
100 Everett Avenue, Chelsea, Massachusetts.

Staff Allegations

    4. Section 15(b) of the CPSA, 15 U.S.C. 2064(b), requires a 
manufacturer of a consumer product distributed in commerce who obtains 
information which reasonably supports the conclusion that such 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 May 1993 and December 1996, Tensor manufactured and sold 
throughout the United States approximately 600,000 ``Halogen Floor 
Lamps, models LT609A, LT609N, and LT609P,'' equipped with 500 watt 
halogen light bulbs (hereinafter ``halogen lamps'').
    6. A halogen lamp is a ``consumer product'' and Tensor is a 
``manufacturer'' of a ``consumer product'', which is ``distributed in 
commerce'' as those terms are defined in Sections 3 (a)(1),(4), (11) 
and (12) of the CPSA, 15 U.S.C. 2052 (a)(1),(4), (11) and (12).
    7. The halogen lamps are defective because the 500 watt halogen 
bulbs contained therein can spontaneously explode during normal use, 
creating a risk of fire, serious injury and death.
    8. Between late 1993 and December 1996, Tensor received 
approximately 330 incidents of exploding halogen bulbs, some causing 
extensive property damage and personal injuries.
    9. Not until June 1996, after receiving a letter from the staff 
requesting information about bulb explosion incidents, did Tensor 
provide any information about the exploding halogen lamp bulbs. The 
information initially provided by Tensor was very limited however.
    10. Tensor's acts and omissions constitute a violation of its duty 
under Section 15(b) of the CPSA, 15 U.S.C. 2064(b), to report 
information that its lamps contained defects which could

[[Page 3998]]

create a substantial product hazard and that said lamps created an 
unreasonable risk of serious injury or death. Tensor thereby committed 
a prohibited act under Section 19(a)(4) of the CPSA, 15 U.S.C. 
2068(a)(4).
    11. The staff alleges this violation, this prohibited act, was 
committed ``knowingly'' as that term is defined in Section 20 (d) of 
the CPSC, 15 U.S.C. 2069 (d), and Tensor is subject to civil penalties 
under Section 19 of the CPSA, 15 U.S.C. 2068.

Allegations of Tensor

    12. Tensor denies all the staff allegations numbered four through 
eleven above. It denies that the halogen lamps contained a defect that 
created a substantial product hazard or an unreasonable risk of serious 
injury or death pursuant to Section 15 of the CPSA, 15 U.S.C. 2064.
    13. Tensor further denies that it violated the reporting 
requirements of Section 15(b) of the CPSA, 15 U.S.C. 2064(b), or that 
it committed a prohibited act, knowingly or otherwise, as defined in 
Sections 19(a)(4) and 20(d) of the CPSA, 15 U.S.C. 2068(a)(4) and 
2069(d). Tensor alleges, among other things, that it had no duty to 
report the halogen lamps but that it did report information in a timely 
and appropriate manner.

Agreement of the Parties

    14. The Commission has jurisdiction over this matter and over 
Tensor under the CPSA, 15 U.S.C. 2051 et seq.
    15. This Settlement Agreement and Order is in resolution of all 
staff's allegations concerning Tensor's failure to report any incidents 
or defects associated with exploding or shattering halogen bulbs 
through March 27, 2000, the date on which the staff examined documents 
at Tensor's headquarters. This Settlement Agreement and Order does not 
constitute an admission by Tensor that the law has been violated.
    16. Tensor agrees to pay a civil penalty in the amount of one 
hundred twenty-five thousand and no/dollars ($125,000.00), payable to 
the ``U.S. Treasury'' and delivered to the attention of William J. 
Moore, Jr. as follows: if hand delivered, to Office of Compliance, 
Legal Division, 4330 East West Highway, Bethesda, MD 20814; if by U.S. 
Mail, to CPSC, Washington, DC 20207. Tensor shall pay sixty-two 
thousand five hundred dollars ($62,500.00) within 10 calendar days of 
receiving service of the final Settlement Agreement and Order, and 
sixty-two thousand five hundred dollars ($62,500.00) to be paid no 
later than one year from the date on which this Settlement Agreement 
and Order became final. If Tensor fails to make a full payment on 
schedule, the unpaid balance of the entire civil penalty shall be due 
and payable immediately and interest on the unpaid balance shall accrue 
and be paid at the federal legal rate of interest under the provisions 
of 28 U.S.C. 1961 (a) and (b), from the date the payment was due under 
the terms of this Settlement Agreement and Order.
    17. Tensor knowingly, voluntarily and completely waives any rights 
it may have in the above captioned case (1) to the issuance of a 
Complaint in this matter; (2) to an administrative or judicial hearing 
with respect to the staff allegations cited herein; (3) to judicial 
review or other challenge or contest of the validity of the Settlement 
Agreement or the Commission's Order; (4) 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, and (5) to a statement of findings of 
fact and conclusions of law with regard to the staff allegations.
    18. 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 16 CFR 1118.20. If the Commission does not 
receive any meritorious 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).
    19. The Settlement Agreement and Order becomes effective upon its 
final acceptance by the Commission.
    20. The Commission may publicize the terms of the Settlement 
Agreement and Order.
    21. Tensor agrees to the entry of the attached Order, which is 
incorporated herein by reference, and agrees to be bound by its terms.
    22. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051 et seq. and a violation of this 
Order may subject Tensor to appropriate legal action.
    23. This Settlement Agreement and Order is binding upon Tensor, its 
parent and each of its assigns or successors.
    24. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.
    25. If, after the effective date hereof, any provision of this 
Settlement Agreement and Order is held to be illegal, invalid, or 
unenforceable under present or future laws effective during the terms 
of the Settlement Agreement and Order, such provision shall be fully 
severable. The rest of the Settlement Agreement and Order shall remain 
in full effect, unless the Commission and Tensor determine that 
severing the provision materially impacts the purpose of the Settlement 
Agreement and Order.
    26. This Settlement Agreement and Order shall not be waived, 
changed, amended, modified, or otherwise altered, except in writing 
executed by the party against whom such amendment, modification, 
alteration, or waiver is sought to be enforced and approved by the 
Commission.
    27. This Settlement Agreement may be used in interpreting the 
Order. Agreements, understandings, representations, or interpretations 
made outside of this Settlement Agreement and Order may not be used to 
vary or contradict its terms.

    Dated: September 22, 2000.
Tensor Corporation.

Roger Sherman,
President.

    The U.S. Consumer Product Safety Commission.

Alan H. Schoem,
Assistant Executive Director, Office of Compliance.

Eric L. Stone,
Director, Legal Division, Office of Compliance.

    Dated: September 19, 2000.

William J. Moore, Jr.,

Trial Attorney.

Belinda V. Mitchell,

Trial Attorney, Legal Division, Office of Compliance.

Order

    Under consideration of the Settlement Agreement entered into 
between Tensor Corporation, a corporation, and the staff of the U.S. 
Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Tensor Corporation, and it 
appearing that the Settlement Agreement and Order is in the public 
interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, accepted, 
and it is
    Further Ordered, That Tensor Corporation, shall pay the Commission 
a civil penalty in the amount of One Hundred Twenty-Five Thousand and 
00/100 dollars, ($125,000.00) payable to the U.S. Treasury as follows: 
delivered to the Commission, sixty-two thousand five hundred dollars 
($62,500.00) within 10 calendar days of the service of the Final Order 
upon Tensor Corporation

[[Page 3999]]

and sixty-two thousand five hundred dollars ($62,500.00) to be paid one 
year from the date on which this Settlement Agreement and Order became 
final.
    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 Tensor Corporation, and the interest on 
the outstanding balance shall accrue and be paid at the federal legal 
rate under the provisions of 27 U.S.C. sections 1961 (a) and (b).
In the Matter of Tensor Corporation
[CPSC DOCKET NO. 01-C0003]
    Provisionally accepted and Provisional Order issued on the 10th day 
of January, 2001.
    By Order of the Commission.


Sadye E. Dunn,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 01-1252 Filed 1-16-01; 8:45 am]
BILLING CODE 6355-01-M