One World Technologies, Inc., and Baja, Inc., Provisional Acceptance of a Settlement Agreement and Order, 64576-64579 [2014-25818]
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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
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10
10
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2 hours .............................................
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60
2 hours .............................................
2 hours .............................................
2 hours .............................................
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10
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20
160
2 hours .............................................
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550
10
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2
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150
550
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10
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1100
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2 hours .............................................
10
20
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10
20
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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.
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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
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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
https://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:
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[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:
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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.
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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.
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17:40 Oct 29, 2014
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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
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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
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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: https://
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
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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
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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
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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
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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: https://
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
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]]>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.
-----------------------------------------------------------------------
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
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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: https://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:
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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
