[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
