[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-30248] [[Page Unknown]] [Federal Register: December 9, 1994] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 95-C0004] Bethany Sales Co., Inc., a Corporation; Provisional Acceptance of a Settlement Agreement and Order AGENCY: Consumer Product Safety Commission. ACTION: Provisional Acceptance of a Settlement Agreement under the Consumer Product Safety Act. ----------------------------------------------------------------------- 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)- (h). Published below is a provisionally-accepted Settlement Agreement with Bethany Sales Company, Inc., a corporation. DATES: Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by December 27, 1994. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 95-C0004, Office of the Secretary, Consumer Product Safety Commission, Washington, DC 20207. FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, Office of Compliance and Enforcement, Consumer Product Safety Commission, Washington, DC 20207; telephone (301) 504-0626. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: December 5, 1994. Sadye E. Dunn, Secretary. Settlement Agreement and Order 1. Bethany Sales Company, Inc. (hereinafter, ``Bethany''), a corporation, enters into this Settlement Agreement and Order (hereinafter, ``Settlement Agreement'') with the staff of the Consumer Product Safety Commission, and agrees to the entry of the Order attached. The purpose of the Settlement Agreement is to settle the staff's allegations that Bethany knowingly violated sections 4 (a) and (c) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 1263 (a) and (c). I. The Parties 2. The ``staff'' is the staff of the Consumer Product Safety Commission, an independent regulatory Commission of the United States established pursuant to section 4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2053. 3. Bethany is a corporation organized and existing under the laws of the State of Illinois, since 1956. The firm's principal place of business is located at 131 West Main Street, Bethany, IL 61914. II. Allegations of the Staff 4. On seven occasions between May 8, 1991, and April 1, 1994, Bethany introduced or caused the introduction into interstate commerce; or received in interstate commerce and delivered or proffered delivery thereof for pay or otherwise eight different kinds of non-complying fireworks (5,833,574 retail units) which are identified and described below: ---------------------------------------------------------------------------------------------------------------- Entry date, Sample No. Product collec date* Expt/Mfg ---------------------------------------------------------------------------------------------------------------- M-830-0434..................... Dragon Trill 37 Shots.......... 05/08/91 Kwongyuen Hangkee Co. P-830-5087..................... Jumping Jacks.................. 03/13/92 United Fireworks. R-830-4091..................... General Custer's Last Stand.... 05/07/93 Kwongyuen Hangkee Co. S-830-4123..................... Warhead Launcher............... 12/10/93 Panda Fireworks. S-830-4131..................... Small Festival Balls........... *01/13/94 Panda Fireworks. S-830-4143..................... Warhead Launcher............... 03/01/94 Panda Fireworks. S-830-4144..................... News Transmitter............... 03/01/94 Panda Fireworks. S-830-4152..................... Kaleidoscope................... 04/01/94 Panda Fireworks. ---------------------------------------------------------------------------------------------------------------- 5. The firework device identified as Dragon Trill 37 Shots, No. Y03-021, Sample No. M-830-0434 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the fuse burn time and fuse attachment requirements in 16 CFR 1507.3(a)(2) and 1507.3(b). 6. The firework device identified as Jumping Jack Fireworks, No. T3500, Sample No. P-830-5087 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 CFR 1507.3(a)(2). 7. The firework device identified as General Custer's Last Stand, No. K7783E, Sample No. R-830-4091 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507 and 16 CFR 1500.17(a)(3), in that when tested, it failed to comply with the fuse attachment and excessive pyrotechnic composition requirements in 16 CFR 1507.3(b) and 16 CFR 1500.17(a)(3). 8. The firework device identified as Warhead Launcher, No. K4426, Sample No. S-830-4123 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the base to height ratio and pyrotechnic leakage requirements contained in 16 CFR 1507.4 and 1507.5. 9. The firework device identified as Small Festival Balls, No. 0008, Sample No. S-830-4131 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the fuse burn time and fuse attachment requirements contained in 16 CFR 1507.3(a)(2) and 1507.3(b). 10. The firework device identified as Warhead Launcher, No. K4426, Sample No. S-830-4143 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the base to height ratio requirement contained in 16 CFR 1507.4. 11. The firework device identified as News Transmitter, No. T2508, Sample No. S-830-4144 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement contained in 16 CFR 1507.5. 12. The firework device identified as Kaleidoscope, No. T2512, Sample No. S-830-4152 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement contained in 16 CFR 1507.5. 13. Each of the fireworks identified in paragraph 4 above are ``banned hazardous substances'' pursuant to section 2(q)(1)(B) of the FHSA, 15 U.S.C. 1261(q)(1)(B), 16 CFR part 1507 and 16 CFR 1500.17(a)(3). 14. Bethany knowingly introduced or caused the introduction into interstate commerce; or received in interstate commerce and delivered or proffered delivery thereof for pay or otherwise, the banned hazardous fireworks identified in paragraph 4 above, in violation of sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and (c). III. Response of Bethany 15. Bethany denies the allegations of the staff set forth in paragraphs 4 through 14 above that it knowingly introduced or caused the introduction into interstate commerce; or received in interstate commerce and delivered or proffered delivery thereof for pay or otherwise the banned hazardous fireworks identified in paragraph 4 above, in violation of sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and (c). IV. Agreement of the Parties 16. The Consumer Product Safety Commission has jurisdiction over Bethany and the subject matter of this Settlement Agreement under the following acts: Consumer Product Safety Act, 15 U.S.C. 2051 et seq., and the Federal Hazardous Substances Act, 15 U.S.C. 1261 et seq. 17. The Commission and Bethany agree that this Agreement is entered into for the purposes of settlement only and does not constitute an admission that Bethany knowingly violated the FHSA. 18. Upon final acceptance of this Settlement Agreement by the Commission and issuance of the Final Order, Bethany knowingly, voluntarily, and completely waives any rights it may have in this matter (1) to an administrative or judicial hearing, (2) to judicial review or other challenge or contest of the validity of the Commission's actions, (3) to a determination by the Commission as to whether Bethany failed to comply with the FHSA as aforesaid, (4) to a statement of findings of fact and conclusions of law, and (5) to any claims under the Equal Access to Justice Act, 5 U.S.C. 504. 19. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), this matter shall be treated as if a complaint had issued, and the Commission may publicize the terms of the Settlement Agreement and Order. 20. Upon provisional acceptance of this Settlement Agreement by the Commission, the Commission will place the Settlement Agreement and the Provisional Order on the public record, and publish it in the Federal Register in accordance with the procedures set forth in 16 CFR 1118.20 (e)-(h). If the Commission does not receive any written requests not to accept the Settlement Agreement within 15 days, the Settlement Agreement shall be deemed finally accepted and the Final Order shall be deemed issued on the 16th day. 21. This Settlement Agreement may be used in interpreting the Provisional and Final Orders. Agreements, understandings, representations, or interpretations apart from those contained in this Settlement Agreement may not be used to vary or to contradict its terms. 22. The provisions of the Settlement Agreement and Final Order shall apply to Bethany and each of its successors and assigns. 23. Upon final acceptance of this Agreement, the Commission shall issue the attached Order. Dated: October 28, 1994. Respondent Bethany Sales Company, Inc. By: Jack Scott, Sr., Chairman and Chief Executive Officer, Bethany Sales Company, Inc., Box 248, 131 West Main Street, Bethany, IL 61914. Dated: October 28, 1994. By: Jack Scott, Jr., President, Bethany Sales Company, Inc., Box 248, 131 West Main Street, Bethany, IL 61914. Commission Staff. David Schmeltzer, Assistant Executive Director, Office of Compliance and Enforcement. Eric L. Stone, Acting Director, Division of Administrative Litigation, Office of Compliance and Enforcement. Dated: October 31, 1994. By: Dennis C. Kacoyanis, Trial Attorney, Division of Administrative Litigation, Office of Compliance and Enforcement. Order Upon consideration of the Settlement Agreement entered into between respondent Bethany Sales Company, Inc., a corporation, and the staff of the Consumer Product Safety Commission; and the Commission having jurisdiction over the subject matter and Bethany Sales Company, Inc.; and it appearing that the Settlement Agreement and Order is in the public interest, it is Ordered, that the Settlement Agreement be and hereby is accepted; and it is Further Ordered, that upon final acceptance of the Settlement Agreement and Order, Bethany Sales Company, Inc. shall pay to the Commission a civil penalty in the amount of ten thousand and 00/100 dollars ($10,000) in three (3) payments consisting of two payments of two thousand five hundred dollars and 00/100 (2,500.00) and one (1) payment of five thousand and 00/100 dollars ($5,000.00) each. The first payment of two thousand five hundred and 00/100 dollars ($2,500.00) shall be due within twenty (20) days after service of the Final Order of the Commission accepting the Settlement Agreement, hereinafter, the ``anniversary date.'' The second payment of two thousand five hundred and 00/100 dollars ($2,500.00) shall be made within 180 days of the anniversary date. The third payment of five thousand and 00/100 dollars ($5,000.00) shall be made within 365 days of the anniversary date. Upon the failure by Bethany Sales Company, Inc. to make a payment or upon the making of a late payment by Bethany Sales Company, Inc. (a) the entire amount of the civil penalty shall be due and payable, and (b) interest on the outstanding balance shall accrue and be paid at the federal legal rate of interest under the provisions of 28 U.S.C. 1961 (a) and (b). Provisionally accepted and Provisional Order issued on the 5th day of December 1994. By Order of the Commission. Sadye E. Dunn, Secretary, Consumer Product Safety Commission. [FR Doc. 94-30248 Filed 12-8-94; 8:45 am] BILLING CODE 6355-01-M