One World Technologies, Inc., and Baja, Inc., Provisional Acceptance of a Settlement Agreement and Order, 64576-64579 [2014-25818]

Download as PDF 64576 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices Estimated annual responses Estimated annual burden hours Item Estimated time for response Russian Federal Service for Intellectual Property (ROSPATENT), Form PTO/SB/20RU. Intellectual Property Office of Singapore (IPOS), Form PTO/SB/20SG ... Spanish Patent and Trademark Office (SPTO), Form PTO/SB/20ES ...... Taiwan Intellectual Property Office (TIPO), Form PTO/SB/20TW ............ United Kingdom Intellectual Property Office (UKIPO), Form PTO/SB/ 20UK. U.S. Applications Where the USPTO was the ISA or IPEA, Form PTO/ SB/20PCT–US. Intellectual Property Office of Australia (IPAU), Form PTO/SB/20PCT– AU. Austrian Patent Office (APO), Form PTO/SB/20PCT–AT ........................ Canadian Intellectual Property Office (CIPO), Form PTO/SB/20PCT–CA State Intellectual Property Office of the P.R.C. (SIPO), Form PTO/SB/ 20PCT–CN. European Patent Office (EPO), Form PTO/SB/20PCT–EP ...................... National Board of Patents and Registration of Finland (NBPR), Form PTO/SB/20PCT–FI. Israeli Patent Office (ILPO), Form PTO/SB/20PCT–IL ............................. Japan Patent Office (JPO), Form PTO/SB/20PCT–JP ............................. Korean Intellectual Property Office (KIPO), Form PTO/SB/20PCT–KR ... Nordic Patent Institute (NPI), Form PTO/SB/20PCT–NPI ........................ Russian Federal Service for Intellectual Property (ROSPATENT), Form PTO/SB/20PCT–RU. Spanish Patent and Trademark Office (SPTO), Form PTO/SB/20PCT– ES. Swedish Patent and Registration Office (PRV), Form PTO/SB/20PCT– SE. 2 hours ............................................. 10 20 2 2 2 2 ............................................. ............................................. ............................................. ............................................. 10 10 10 40 20 20 20 80 2 hours ............................................. 200 400 2 hours ............................................. 30 60 2 hours ............................................. 2 hours ............................................. 2 hours ............................................. 10 10 80 20 20 160 2 hours ............................................. 2 hours ............................................. 550 10 1100 20 2 2 2 2 2 ............................................. ............................................. ............................................. ............................................. ............................................. 10 150 550 10 10 20 300 1100 20 20 2 hours ............................................. 10 20 2 hours ............................................. 10 20 .......................................................... 8,210 16,420 Totals .................................................................................................. Estimated Total Annual Non-hour Respondent Cost Burden: $0. There are no capital start-up, maintenance, or postage costs associated with this collection. This collection also has no filing fees or recordkeeping costs. tkelley on DSK3SPTVN1PROD with NOTICES Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, e.g., the use of automated collection techniques or other forms of information technology. Comments submitted in response to this notice will be summarized or included in the request for OMB approval of this information collection; they also will become a matter of public record. 17:40 Oct 29, 2014 hours hours hours hours hours Dated: October 23, 2014. Marcie Lovett, Records Management Division Director, USPTO, Office of the Chief Information Officer. [FR Doc. 2014–25866 Filed 10–29–14; 8:45 am] BILLING CODE 3510–16–P IV. Request for Comments VerDate Sep<11>2014 hours hours hours hours Jkt 235001 or place of the meeting, will be posted on the Commission’s Web site. CONTACT PERSON FOR MORE INFORMATION: Christopher J. Kirkpatrick, Secretary of the Commission, 202–418–5964. Christopher J. Kirkpatrick, Secretary of the Commission. [FR Doc. 2014–25894 Filed 10–28–14; 11:15 am] BILLING CODE 6351–01–P COMMODITY FUTURES TRADING COMMISSION CONSUMER PRODUCT SAFETY COMMISSION Sunshine Act Meetings 10:30 a.m. EST, Monday, November 3, 2014. PLACE: CFTC Headquarters Conference Center, Three Lafayette Centre, 1155 21st Street NW., Washington, DC. STATUS: Open. MATTERS TO BE CONSIDERED: The Commission will hold this meeting to consider rulemaking and related matters, including the issuance of proposed rules and a final interpretation. The agenda for this meeting is available to the public and posted on the Commission’s Web site at http://www.cftc.gov. In the event that the time, date, or place of this meeting changes, an announcement of the change, along with the new time, date, TIME AND DATE: PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 [CPSC Docket No. 15–C0001] One World Technologies, Inc., and Baja, Inc., Provisional Acceptance of a Settlement Agreement and Order Consumer Product Safety Commission. ACTION: Notice. AGENCY: 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 One World Technologies, Inc., and Baja, Inc., containing a civil penalty of $4.3 SUMMARY: E:\FR\FM\30OCN1.SGM 30OCN1 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices million dollars ($4,300,000.00 U.S. dollars), within twenty (20) days of service of the Commission’s final Order accepting the Settlement Agreement.1 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 November 14, 2014. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 15–C0001 Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 820, Bethesda, Maryland 20814– 4408. FOR FURTHER INFORMATION CONTACT: Daniel Vice, Trial Attorney, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814– 4408; telephone (301) 504–6996. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: October 27, 2014. Todd A. Stevenson, Secretary. UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: One World Technologies, Inc., and Baja, Inc. CPSC Docket No.: 15–C0001 SETTLEMENT AGREEMENT 1. In accordance with the Consumer Product Safety Act (CPSA), 15 U.S.C. §§ 2051–2089 and 16 C.F.R. § 1118.20, One World Technologies, Inc. and Baja, Inc. (the Firm), and the U.S. Consumer Product Safety Commission (Commission), through its staff (staff), enter into this Settlement Agreement (Agreement). The Agreement and the incorporated attached Order (Order) resolve staff’s charges set forth below. tkelley on DSK3SPTVN1PROD with NOTICES THE PARTIES 2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for, the enforcement of the CPSA. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 C.F.R. § 1118.20(b). The Commission 1 The Commission voted (4–1) to provisionally accept this Settlement Agreement and Order. Chairman Elliot F. Kaye and Commissioners Robert S. Adler, Marietta S. Robinson and Joseph P. Mohorovic voted to provisionally accept the Settlement Agreement and Order. Commissioner Ann Marie Buerkle voted to reject the Settlement Agreement and Order. VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 issues the Order under the provisions of the CPSA. 3. Baja, Inc. (Baja) is incorporated in Delaware with its principal place of business in Anderson, South Carolina. One World Technologies, Inc., is a Delaware corporation with its principal offices in Anderson, South Carolina. One World Technologies, Inc., and Baja are corporate affiliates. STAFF CHARGES 4. Baja imported and sold nationwide in the United States approximately 308,000 minibikes and go-carts with model numbers beginning with BB65, DB30, DN65, DR90, HT65, MB165, MB196, SD65, TR65, WR65, and WR90 (Subject Products). 5. The Subject Products (a) contain a defect which could create a substantial product hazard, and (b) create an unreasonable risk of serious injury because the gas cap can leak or detach from the fuel tank, posing a fire and burn hazard to consumers, and because the throttle can stick due to an improperly positioned fuel line and throttle cable. 6. The Subject Products are ‘‘consumer products,’’ and at all relevant times, Baja was a ‘‘manufacturer and distributor’’ of these consumer products, which were ‘‘distributed in commerce,’’ as those terms are defined or used in sections 3(a)(5), (7), (8), (9) and (11) of the CPSA, 15 U.S.C. § 2052(a)(5), (7), (8), (9) and (11). 7. Baja received four consumer reports of fires that occurred as a result of a leaking gas cap, some of which resulted in burn injuries to consumers, including children. 8. The family of a child who alleged that he was injured when a gas cap leak on a WR65 minibike resulted in a fire sued Baja. 9. The Firm settled personal injury claims of consumers who were injured as a result of a leaking gas cap. 10. Baja received approximately two dozen consumer reports of stuck throttles in the Subject Products. 11. Baja received communications from retailers reporting that consumers had experienced sudden acceleration while riding the Subject Products. 12. Baja worked with the manufacturer to devise design changes to shorten the fuel line and remedy the hazard. Baja then implemented the design changes but did not notify consumers who owned the Subject Products about the design changes. 13. The Firm had information which reasonably supported the conclusion that the Subject Products (a) contained a defect which could create a substantial PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 64577 product hazard, and (b) created an unreasonable risk of injury, requiring immediate reporting to the Commission under section 15(b) of the CPSA, 15 U.S.C. § 2064(b). The Firm failed to so report. 14. The Firm did not report to the Commission under section 15(b) of the CPSA with respect to the Subject Products until June 2, 2010. 15. In failing to inform the Commission about Subject Products immediately as required by section 15(b) of the CPSA, the Firm knowingly violated CPSA section 19(a)(4), 15 U.S.C. § 2068(a)(4), as the term ‘‘knowingly’’ is defined in CPSA section 20(d), 15 U.S.C. § 2069(d). 16. Pursuant to CPSA section 20, 15 U.S.C. § 2069, the Firm is subject to civil penalties for its knowing violation of CPSA section 19(a)(4), 15 U.S.C. § 2068(a)(4). THE FIRM’S RESPONSE 17. This Agreement does not constitute an admission by the Firm to the charges set forth in paragraphs 4 through 16, including but not limited to the charge that the Subject Products contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death, and the charge that the Firm failed to notify the Commission in a timely manner, in accordance with section 15(b) of the CPSA, 15 U.S.C. 2064(b). 18. The four reports of fires that occurred as a result of a leaking gas cap cited by the staff were out of over 250,000 units on the market. In two of the instances, the gas cap was not available for Baja’s inspection and in the third instance the unit was so badly damaged by fire that Baja could not determine the cause of the incident. 19. The fourth incident involved a child who was badly burned and who filed suit. However, it was the opinion of Baja’s expert, following product inspections that took place in 2009 and 2011, that the fuel leak came from a damaged fuel line, that the bike had not been properly maintained and that the gas cap, a standard bayonet cap, was not defective. This was the only one of the four cases in which a suit was filed, or in which Baja settled a lawsuit. 20. The Firm received reports from two retailers referred to by the staff during the period 2008–2009 when there were over 150,000 units in use. Following the required pre-sale inspection of the vehicles, the retailers discovered a loose fuel line. The units were fixed before they were sold to consumers and no injuries were E:\FR\FM\30OCN1.SGM 30OCN1 64578 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices tkelley on DSK3SPTVN1PROD with NOTICES reported. There were no prior reports of a loose fuel line. 21. In an effort to minimize the possibility that units with a loose fuel line would be delivered to retailers in the future, Baja contacted the manufacturer to improve its preshipment inspection procedures and reduce the length of the fuel line. 22. Although two dozen consumers submitted reports of a stuck throttle, they did not claim that these were caused by an improperly positioned fuel line and throttle cable. 23. The consumers reported only a stuck throttle which could have many other potential causes besides an improperly positioned fuel line and throttle cable, including: debris hanging up the throttle cable or in the carburetor; worn, broken or kinked throttle cable; dirt under or on the throttle slide and other damage caused by poor maintenance or misuse of a vehicle. 24. The Firm has entered into this settlement to avoid the cost, distraction, delay, uncertainly and inconvenience of protracted litigation or other proceedings. AGREEMENT OF THE PARTIES 25. Under the CPSA, the Commission has jurisdiction over the matter involving Subject Products and over the Firm. 26. In settlement of staff’s charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, the Firm shall pay a civil penalty in the amount of four million three hundred thousand dollars (US$4,300,000.00), which shall be due and payable within twenty calendar days after receiving service of the Commission’s final Order accepting the Agreement. All payments to be made under the Agreement shall constitute debts owing to the United States and shall be made by electronic wire transfer to the United States via: http:// www.pay.gov. 27. The parties agree that this settlement figure is predicated, among other things, upon the accuracy of oral and written representations of, and statements by, the Firm and the Firm’s representatives (including representations set forth in the Agreement). 28. The Firm currently has a written Post-Sale Product Safety Compliance Program, an established Product Hazard Committee and a Product Safety Education and Training Program (collectively, the Programs), designed to ensure compliance with the statutes and regulations enforced by the Commission VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 (CPSC authority). These Programs contain, or will be modified to contain, the following elements: a) written standards and policies; b) systematic procedures for (i) reviewing and assessing reports, claims and other information (including consumer and retailer incident reports and personal injury claims) for potential safety issues, including the potential existence of a substantial risk of injury or a defect, and (ii) referring such reports, claims and other information to appropriate personnel responsible for complying with CPSC authority; c) a mechanism for confidential employee reporting of compliancerelated questions or concerns to a senior manager with authority to act as necessary; d) effective communication of company compliance-related policies and procedures to all employees, through training programs or otherwise; e) senior manager responsibility for compliance and senior manager accountability for violations of the statutes and regulations enforced by the Commission; f) oversight of compliance by the Firm’s governing body; and g) retention of all compliance-related records for at least five years, and availability of such records to CPSC staff upon request. 29. It is the Firm’s policy and the Firm agrees to maintain and enforce a system of internal controls and procedures designed to ensure that: a) information required to be disclosed by the Firm to the Commission is recorded, processed, and reported in accordance with applicable law; b) all reporting made to the Commission is timely, truthful, complete, and accurate; and c) prompt disclosure is made to the Firm management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to adversely affect in any material respect the Firm’s ability to record, process, and report to the Commission in accordance with applicable law. 30. Upon request of staff, the Firm shall provide written documentation of any material changes in the Programs. 31. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by the Firm or a determination by the Commission that the Firm violated the CPSA. 32. Following staff’s receipt of the Agreement executed on behalf of the Firm, staff shall promptly submit the Agreement to the Commission for PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 provisional acceptance. Promptly following provisional acceptance of the Agreement by the Commission, the Agreement shall be placed on the public record and published in the Federal Register, in accordance with the procedures set forth in 16 C.F.R. § 1118.20(e). If, within fifteen calendar days, the Commission does not receive any written request not to accept the Agreement, the Agreement shall be deemed finally accepted on the sixteenth calendar day after the date the Agreement is published in the Federal Register, in accordance with 16 C.F.R. § 1118.20(f). 33. The Agreement is conditioned upon, and subject to, the Commission’s final acceptance, as set forth above, and is subject to the provisions of 16 C.F.R. § 1118.20(h). Upon the later of: (i) The Commission’s final acceptance of the Agreement and service of the accepted Agreement upon the Firm, and (ii) the date of issuance of the final Order, the Agreement shall be in full force and effect and shall be binding upon the parties. 34. Effective upon the later of: (i) The Commission’s final acceptance of the Agreement and service of the accepted Agreement upon the Firm, and (ii) the date of issuance of the final Order, for good and valuable consideration, the Firm hereby expressly and irrevocably waives and agrees not to assert any past, present, or future rights to the following actions or remedies in connection with the matters described in the Agreement: (a) An administrative or judicial hearing; (b) judicial review or other challenge or contest of the validity of the Order or of the Commission’s actions; (c) a determination by the Commission of whether the Firm failed to comply with the CPSA and the underlying regulations; (d) a statement of findings of fact and conclusions of law; and (e) any claims under the Equal Access to Justice Act. 35. Upon request of staff, the Firm shall cooperate fully and truthfully with staff and shall make available all information, materials, and personnel deemed necessary by staff to evaluate the Firm’s compliance with the terms of the Agreement. 36. The parties acknowledge and agree that the Commission may make public disclosure of the terms of the Agreement and the Order. 37. The Firm represents that the Agreement: (i) Is entered into freely and voluntarily, without any degree of duress or compulsion whatsoever; (ii) has been duly authorized; and (iii) constitutes the valid and binding obligation of the Firm and each of its successors and/or assigns, enforceable E:\FR\FM\30OCN1.SGM 30OCN1 tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices against the Firm in accordance with the Agreement’s terms. The individuals signing the Agreement on behalf of the Firm represent and warrant that they are duly authorized by the Firm to execute the Agreement. 38. The Commission signatories represent that they are signing the Agreement in their official capacities and that they are authorized to execute the Agreement. 39. The Agreement is governed by the laws of the United States. 40. The Agreement and the Order shall apply to, and be binding upon the Firm and each of its subsidiaries, successors, transferees, and assigns, and a violation of the Agreement or Order may subject such entities to appropriate legal action. 41. The Agreement and the Order constitute the complete agreement among the parties on the subject matter contained herein and therein. 42. The Agreement may be used in interpreting the Order. Understandings, agreements, representations, or interpretations apart from those contained in the Agreement and the Order may not be used to vary or contradict their terms. For purposes of construction, the Agreement shall be deemed to have been drafted by both of the parties, and shall not be construed against any party for that reason in any subsequent dispute. 43. The Agreement shall not be waived, amended, modified, or otherwise altered, except as in accordance with the provisions of 16 C.F.R. § 1118.20(h). The Agreement may be executed in counterparts. 44. If any provision of the Agreement or the Order is held to be illegal, invalid, or unenforceable under present or future laws effective during the terms of the Agreement and the Order, such provision shall be fully severable. The balance of the Agreement and the Order shall remain in full force and effect, unless the Commission and the Firm agree that severing the provision materially affects the purpose of the Agreement and Order. Dated: 10/13/14 BAJA, INC. By: llllllllllllllll Michael Konick Treasurer ONE WORLD TECHNOLOGIES, INC. Dated: 10/13/14 By: llllllllllllllll Michael Konick Chief Financial Officer U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF Stephanie Tsacoumis VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 General Counsel DEPARTMENT OF DEFENSE Mary T. Boyle Deputy General Counsel 64579 Office of the Secretary [Docket ID: DoD–2014–OS–0056] Mary B. Murphy Assistant General Counsel Submission for OMB Review; Comment Request Dated: 10/14/14 By: llllllllllllllll ACTION: Notice. Daniel Vice Trial Attorney The Department of Defense has submitted to OMB for clearance, the following proposal for collection of information under the provisions of the Paperwork Reduction Act. DATES: Consideration will be given to all comments received by December 1, 2014. SUMMARY: UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: One World Technologies, Inc., and Baja, Inc. CPSC Docket No.: 15–C0001 FOR FURTHER INFORMATION CONTACT: Fred Licari, 571–372–0493. SUPPLEMENTARY INFORMATION: Title, Associated Form and OMB Number: Police Record Check; DD Form 369; OMB Control Number 0704–0007. Upon consideration of the Settlement Type of Request: Revision. Agreement entered into between One Number of Respondents: 175,000. World Technologies, Inc., and Baja, Inc. Responses per Respondent: 1. (the Firm), and the U.S. Consumer Annual Responses: 175,000. Product Safety Commission Average Burden per Response: 27 (Commission), and the Commission minutes. having jurisdiction over the subject Annual Burden Hours: 78,750. matter and over the Firm, and it Needs and Uses: The information appearing that the Settlement collection requirement is necessary, per Agreement and the Order are in the Sections 504, 505 and 12102, Title 10 public interest, it is U.S. Code, to identify persons who may be undesirable for military service. ORDERED that the Settlement Agreement be, and is, hereby, accepted; Applicants for enlistment must be screened to identify any discreditable and it is involvement with police or other law FURTHER ORDERED, that the Firm enforcement agencies. The DD Form shall comply with the terms of the 369, ‘‘Police Record Check’’ is Settlement Agreement and shall pay a forwarded to law enforcement agencies civil penalty of four million three to identify if applicant has a record. hundred thousand dollars Affected Public: Individuals or (US$4,300,000.00), within twenty households; State or local government calendar days after receiving service of agencies. the Commission’s final Order accepting Frequency: On occasion. the Settlement Agreement. Upon failure Respondent’s Obligation: Voluntary. of the Firm to make the foregoing OMB Desk Officer: Ms. Jasmeet payment when due, interest on the unpaid amount shall accrue and be paid Seehra. Written comments and by the Firm at the federal legal rate of recommendations on the proposed interest set forth at 28 U.S.C. § 1961(a) information collection should be sent to and (b). If the Firm fails to make such a payment or to comply in full with any Ms. Jasmeet Seehra at the Office of Management and Budget, Desk Officer other provision as set forth in the for DoD, Room 10236, New Executive Settlement Agreement, such conduct Office Building, Washington, DC 20503. will be considered a violation of the You may also submit comments, Settlement Agreement and Order. identified by docket number and title, Provisionally accepted and provisional by the following method: Order issued on the 27th day of October, • Federal eRulemaking Portal: http:// 2014. www.regulations.gov. Follow the By Order of the Commission: instructions for submitting comments. lllllllllllllllllllll Instructions: All submissions received Todd A. Stevenson, Secretary, must include the agency name, docket U.S. Consumer Product Safety Commission. number and title for this Federal [FR Doc. 2014–25818 Filed 10–29–14; 8:45 am] Register document. The general policy for comments and other submissions BILLING CODE 6355–01–P ORDER PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 E:\FR\FM\30OCN1.SGM 30OCN1

Agencies

[Federal Register Volume 79, Number 210 (Thursday, October 30, 2014)]
[Notices]
[Pages 64576-64579]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25818]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0001]


One World Technologies, Inc., and Baja, Inc., 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 
One World Technologies, Inc., and Baja, Inc., containing a civil 
penalty of $4.3

[[Page 64577]]

million dollars ($4,300,000.00 U.S. dollars), within twenty (20) days 
of service of the Commission's final Order accepting the Settlement 
Agreement.\1\
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    \1\ The Commission voted (4-1) to provisionally accept this 
Settlement Agreement and Order. Chairman Elliot F. Kaye and 
Commissioners Robert S. Adler, Marietta S. Robinson and Joseph P. 
Mohorovic voted to provisionally accept the Settlement Agreement and 
Order. Commissioner Ann Marie Buerkle voted to reject the Settlement 
Agreement and Order.

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 November 14, 2014.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0001 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Daniel Vice, Trial Attorney, Office of 
the General Counsel, Consumer Product Safety Commission, 4330 East West 
Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-6996.

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

    Dated: October 27, 2014.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

In the Matter of:
One World Technologies, Inc.,
and Baja, Inc.
CPSC Docket No.: 15-C0001

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act (CPSA), 15 
U.S.C. Sec. Sec.  2051-2089 and 16 C.F.R. Sec.  1118.20, One World 
Technologies, Inc. and Baja, Inc. (the Firm), and the U.S. Consumer 
Product Safety Commission (Commission), through its staff (staff), 
enter into this Settlement Agreement (Agreement). The Agreement and the 
incorporated attached Order (Order) resolve staff's charges set forth 
below.

THE PARTIES

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for, the enforcement of the 
CPSA. By executing the Agreement, staff is acting on behalf of the 
Commission, pursuant to 16 C.F.R. Sec.  1118.20(b). The Commission 
issues the Order under the provisions of the CPSA.
    3. Baja, Inc. (Baja) is incorporated in Delaware with its principal 
place of business in Anderson, South Carolina. One World Technologies, 
Inc., is a Delaware corporation with its principal offices in Anderson, 
South Carolina. One World Technologies, Inc., and Baja are corporate 
affiliates.

STAFF CHARGES

    4. Baja imported and sold nationwide in the United States 
approximately 308,000 minibikes and go-carts with model numbers 
beginning with BB65, DB30, DN65, DR90, HT65, MB165, MB196, SD65, TR65, 
WR65, and WR90 (Subject Products).
    5. The Subject Products (a) contain a defect which could create a 
substantial product hazard, and (b) create an unreasonable risk of 
serious injury because the gas cap can leak or detach from the fuel 
tank, posing a fire and burn hazard to consumers, and because the 
throttle can stick due to an improperly positioned fuel line and 
throttle cable.
    6. The Subject Products are ``consumer products,'' and at all 
relevant times, Baja was a ``manufacturer and distributor'' of these 
consumer products, which were ``distributed in commerce,'' as those 
terms are defined or used in sections 3(a)(5), (7), (8), (9) and (11) 
of the CPSA, 15 U.S.C. Sec.  2052(a)(5), (7), (8), (9) and (11).
    7. Baja received four consumer reports of fires that occurred as a 
result of a leaking gas cap, some of which resulted in burn injuries to 
consumers, including children.
    8. The family of a child who alleged that he was injured when a gas 
cap leak on a WR65 minibike resulted in a fire sued Baja.
    9. The Firm settled personal injury claims of consumers who were 
injured as a result of a leaking gas cap.
    10. Baja received approximately two dozen consumer reports of stuck 
throttles in the Subject Products.
    11. Baja received communications from retailers reporting that 
consumers had experienced sudden acceleration while riding the Subject 
Products.
    12. Baja worked with the manufacturer to devise design changes to 
shorten the fuel line and remedy the hazard. Baja then implemented the 
design changes but did not notify consumers who owned the Subject 
Products about the design changes.
    13. The Firm had information which reasonably supported the 
conclusion that the Subject Products (a) contained a defect which could 
create a substantial product hazard, and (b) created an unreasonable 
risk of injury, requiring immediate reporting to the Commission under 
section 15(b) of the CPSA, 15 U.S.C. Sec.  2064(b). The Firm failed to 
so report.
    14. The Firm did not report to the Commission under section 15(b) 
of the CPSA with respect to the Subject Products until June 2, 2010.
    15. In failing to inform the Commission about Subject Products 
immediately as required by section 15(b) of the CPSA, the Firm 
knowingly violated CPSA section 19(a)(4), 15 U.S.C. Sec.  2068(a)(4), 
as the term ``knowingly'' is defined in CPSA section 20(d), 15 U.S.C. 
Sec.  2069(d).
    16. Pursuant to CPSA section 20, 15 U.S.C. Sec.  2069, the Firm is 
subject to civil penalties for its knowing violation of CPSA section 
19(a)(4), 15 U.S.C. Sec.  2068(a)(4).

THE FIRM'S RESPONSE

    17. This Agreement does not constitute an admission by the Firm to 
the charges set forth in paragraphs 4 through 16, including but not 
limited to the charge that the Subject Products contained a defect 
which could create a substantial product hazard or created an 
unreasonable risk of serious injury or death, and the charge that the 
Firm failed to notify the Commission in a timely manner, in accordance 
with section 15(b) of the CPSA, 15 U.S.C. 2064(b).
    18. The four reports of fires that occurred as a result of a 
leaking gas cap cited by the staff were out of over 250,000 units on 
the market. In two of the instances, the gas cap was not available for 
Baja's inspection and in the third instance the unit was so badly 
damaged by fire that Baja could not determine the cause of the 
incident.
    19. The fourth incident involved a child who was badly burned and 
who filed suit. However, it was the opinion of Baja's expert, following 
product inspections that took place in 2009 and 2011, that the fuel 
leak came from a damaged fuel line, that the bike had not been properly 
maintained and that the gas cap, a standard bayonet cap, was not 
defective. This was the only one of the four cases in which a suit was 
filed, or in which Baja settled a lawsuit.
    20. The Firm received reports from two retailers referred to by the 
staff during the period 2008-2009 when there were over 150,000 units in 
use. Following the required pre-sale inspection of the vehicles, the 
retailers discovered a loose fuel line. The units were fixed before 
they were sold to consumers and no injuries were

[[Page 64578]]

reported. There were no prior reports of a loose fuel line.
    21. In an effort to minimize the possibility that units with a 
loose fuel line would be delivered to retailers in the future, Baja 
contacted the manufacturer to improve its pre-shipment inspection 
procedures and reduce the length of the fuel line.
    22. Although two dozen consumers submitted reports of a stuck 
throttle, they did not claim that these were caused by an improperly 
positioned fuel line and throttle cable.
    23. The consumers reported only a stuck throttle which could have 
many other potential causes besides an improperly positioned fuel line 
and throttle cable, including: debris hanging up the throttle cable or 
in the carburetor; worn, broken or kinked throttle cable; dirt under or 
on the throttle slide and other damage caused by poor maintenance or 
misuse of a vehicle.
    24. The Firm has entered into this settlement to avoid the cost, 
distraction, delay, uncertainly and inconvenience of protracted 
litigation or other proceedings.

AGREEMENT OF THE PARTIES

    25. Under the CPSA, the Commission has jurisdiction over the matter 
involving Subject Products and over the Firm.
    26. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, the Firm shall pay a civil penalty in 
the amount of four million three hundred thousand dollars 
(US$4,300,000.00), which shall be due and payable within twenty 
calendar days after receiving service of the Commission's final Order 
accepting the Agreement. All payments to be made under the Agreement 
shall constitute debts owing to the United States and shall be made by 
electronic wire transfer to the United States via: http://www.pay.gov.
    27. The parties agree that this settlement figure is predicated, 
among other things, upon the accuracy of oral and written 
representations of, and statements by, the Firm and the Firm's 
representatives (including representations set forth in the Agreement).
    28. The Firm currently has a written Post-Sale Product Safety 
Compliance Program, an established Product Hazard Committee and a 
Product Safety Education and Training Program (collectively, the 
Programs), designed to ensure compliance with the statutes and 
regulations enforced by the Commission (CPSC authority). These Programs 
contain, or will be modified to contain, the following elements:
    a) written standards and policies;
    b) systematic procedures for (i) reviewing and assessing reports, 
claims and other information (including consumer and retailer incident 
reports and personal injury claims) for potential safety issues, 
including the potential existence of a substantial risk of injury or a 
defect, and (ii) referring such reports, claims and other information 
to appropriate personnel responsible for complying with CPSC authority;
    c) a mechanism for confidential employee reporting of compliance-
related questions or concerns to a senior manager with authority to act 
as necessary;
    d) effective communication of company compliance-related policies 
and procedures to all employees, through training programs or 
otherwise;
    e) senior manager responsibility for compliance and senior manager 
accountability for violations of the statutes and regulations enforced 
by the Commission;
    f) oversight of compliance by the Firm's governing body; and
    g) retention of all compliance-related records for at least five 
years, and availability of such records to CPSC staff upon request.
    29. It is the Firm's policy and the Firm agrees to maintain and 
enforce a system of internal controls and procedures designed to ensure 
that:
    a) information required to be disclosed by the Firm to the 
Commission is recorded, processed, and reported in accordance with 
applicable law;
    b) all reporting made to the Commission is timely, truthful, 
complete, and accurate; and
    c) prompt disclosure is made to the Firm management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
adversely affect in any material respect the Firm's ability to record, 
process, and report to the Commission in accordance with applicable 
law.
    30. Upon request of staff, the Firm shall provide written 
documentation of any material changes in the Programs.
    31. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by the Firm or a 
determination by the Commission that the Firm violated the CPSA.
    32. Following staff's receipt of the Agreement executed on behalf 
of the Firm, staff shall promptly submit the Agreement to the 
Commission for provisional acceptance. Promptly following provisional 
acceptance of the Agreement by the Commission, the Agreement shall be 
placed on the public record and published in the Federal Register, in 
accordance with the procedures set forth in 16 C.F.R. Sec.  1118.20(e). 
If, within fifteen calendar days, the Commission does not receive any 
written request not to accept the Agreement, the Agreement shall be 
deemed finally accepted on the sixteenth calendar day after the date 
the Agreement is published in the Federal Register, in accordance with 
16 C.F.R. Sec.  1118.20(f).
    33. The Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and is subject to 
the provisions of 16 C.F.R. Sec.  1118.20(h). Upon the later of: (i) 
The Commission's final acceptance of the Agreement and service of the 
accepted Agreement upon the Firm, and (ii) the date of issuance of the 
final Order, the Agreement shall be in full force and effect and shall 
be binding upon the parties.
    34. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
the Firm, and (ii) the date of issuance of the final Order, for good 
and valuable consideration, the Firm hereby expressly and irrevocably 
waives and agrees not to assert any past, present, or future rights to 
the following actions or remedies in connection with the matters 
described in the Agreement: (a) An administrative or judicial hearing; 
(b) judicial review or other challenge or contest of the validity of 
the Order or of the Commission's actions; (c) a determination by the 
Commission of whether the Firm failed to comply with the CPSA and the 
underlying regulations; (d) a statement of findings of fact and 
conclusions of law; and (e) any claims under the Equal Access to 
Justice Act.
    35. Upon request of staff, the Firm shall cooperate fully and 
truthfully with staff and shall make available all information, 
materials, and personnel deemed necessary by staff to evaluate the 
Firm's compliance with the terms of the Agreement.
    36. The parties acknowledge and agree that the Commission may make 
public disclosure of the terms of the Agreement and the Order.
    37. The Firm represents that the Agreement: (i) Is entered into 
freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of the Firm and each of its successors 
and/or assigns, enforceable

[[Page 64579]]

against the Firm in accordance with the Agreement's terms. The 
individuals signing the Agreement on behalf of the Firm represent and 
warrant that they are duly authorized by the Firm to execute the 
Agreement.
    38. The Commission signatories represent that they are signing the 
Agreement in their official capacities and that they are authorized to 
execute the Agreement.
    39. The Agreement is governed by the laws of the United States.
    40. The Agreement and the Order shall apply to, and be binding upon 
the Firm and each of its subsidiaries, successors, transferees, and 
assigns, and a violation of the Agreement or Order may subject such 
entities to appropriate legal action.
    41. The Agreement and the Order constitute the complete agreement 
among the parties on the subject matter contained herein and therein.
    42. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations apart 
from those contained in the Agreement and the Order may not be used to 
vary or contradict their terms. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties, 
and shall not be construed against any party for that reason in any 
subsequent dispute.
    43. The Agreement shall not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
C.F.R. Sec.  1118.20(h). The Agreement may be executed in counterparts.
    44. If any provision of the Agreement or the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the Commission 
and the Firm agree that severing the provision materially affects the 
purpose of the Agreement and Order.

Dated: 10/13/14

BAJA, INC.

By:--------------------------------------------------------------------

Michael Konick
Treasurer

ONE WORLD TECHNOLOGIES, INC.

Dated: 10/13/14

By:--------------------------------------------------------------------

Michael Konick
Chief Financial Officer

U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF

Stephanie Tsacoumis
General Counsel

Mary T. Boyle
Deputy General Counsel

Mary B. Murphy
Assistant General Counsel

Dated: 10/14/14

By:--------------------------------------------------------------------

Daniel Vice
Trial Attorney

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

In the Matter of:
One World Technologies, Inc.,
and
Baja, Inc.

CPSC Docket No.: 15-C0001

ORDER

    Upon consideration of the Settlement Agreement entered into between 
One World Technologies, Inc., and Baja, Inc. (the Firm), and the U.S. 
Consumer Product Safety Commission (Commission), and the Commission 
having jurisdiction over the subject matter and over the Firm, and it 
appearing that the Settlement Agreement and the Order are in the public 
interest, it is
    ORDERED that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    FURTHER ORDERED, that the Firm shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty of four million 
three hundred thousand dollars (US$4,300,000.00), within twenty 
calendar days after receiving service of the Commission's final Order 
accepting the Settlement Agreement. Upon failure of the Firm to make 
the foregoing payment when due, interest on the unpaid amount shall 
accrue and be paid by the Firm at the federal legal rate of interest 
set forth at 28 U.S.C. Sec.  1961(a) and (b). If the Firm fails to make 
such a payment or to comply in full with any other provision as set 
forth in the Settlement Agreement, such conduct will be considered a 
violation of the Settlement Agreement and Order.

    Provisionally accepted and provisional Order issued on the 27th 
day of October, 2014.

By Order of the Commission:

-----------------------------------------------------------------------

Todd A. Stevenson, Secretary,
U.S. Consumer Product Safety Commission.

[FR Doc. 2014-25818 Filed 10-29-14; 8:45 am]
BILLING CODE 6355-01-P