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[Federal Register: November 30, 2010 (Volume 75, Number 229)]
[Notices]               
[Page 74008-74011]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no10-53]                         

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 11-C0001]

 
Jake's Fireworks, Inc., Far East Imports, Inc., Wholesale 
Fireworks Enterprises LLC, Pacific Northwest Fireworks, Inc., 
Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

[[Page 74009]]

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 
Jake's Fireworks, Inc., Far East Imports, Inc., Wholesale Fireworks 
Enterprises LLC, Pacific Northwest Fireworks, Inc., containing a civil 
penalty of $100,000.00.

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 15, 2010.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 11-C0001, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Michelle Faust Gillice, Trial 
Attorney, Division of Enforcement and Information, Office of the 
General Counsel, Consumer Product Safety Commission, 4330 East West 
Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7667. 
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: November 24, 2010.
Todd A. Stevenson,
 Secretary.

Settlement Agreement

    1. In accordance with 16 CFR 1118.20, Jake's Fireworks, Inc., Far 
East Imports, Inc., Wholesale Fireworks Enterprises, LLC and Pacific 
Northwest Fireworks, Inc., and the staff (``Staff'') of the United 
States Consumer Product Safety Commission (``Commission'') enter into 
this Settlement Agreement (``Agreement''). This Agreement and the 
incorporated attached Order resolve the staff's allegations set forth 
below.

The Parties

    2. The Staff is the staff of the Commission, an independent federal 
regulatory agency responsible for the enforcement of the Consumer 
Product Safety Act (``CPSA''), 15 U.S.C. 2051-2089 and the Federal 
Hazardous Substances Act (``FHSA''), 15 U.S.C. 1261-1278.
    3. Jake's Fireworks, Inc. is a corporation organized and existing 
under the laws of Kansas, with its principal offices located in 
Pittsburg, Kansas. Far East Imports, Inc. and Wholesale Fireworks 
Enterprises, LLC are incorporated under the laws of Kansas and share 
the same address as Jake's Fireworks in Pittsburg, Kansas. Pacific 
Northwest Fireworks, Inc. is a Washington corporation located in 
Aberdeen, Washington. At all times relevant hereto, Jake's Fireworks, 
Inc., Far East Imports, Inc., Wholesale Fireworks Enterprises, LLC, and 
Pacific Northwest Fireworks, Inc. (hereinafter collectively referred to 
as the ``Respondents'') introduced or caused to be introduced into 
interstate commerce certain violative fireworks.

Staff Allegations

    4. Between December 2006 and September 2007, Respondents imported 
over 200,000 fireworks that failed to comply with the Commission's 
fireworks regulations at 16 CFR 1500.17(a)(3) and 16 CFR Part 1507. 
(Fireworks subject to this Agreement and Order are identified in 
Attachment A.)
    5. Between December 2006 and September 2007, Commission staff 
issued 98 separate Letters of Advice to Respondents notifying the firms 
that the fireworks devices sampled at import were in violation of the 
Commission's fireworks regulations. Of the 98 violations, 81 violations 
were for failure to comply with the regulation set forth at 16 CFR 
1500.17(a)(3). Section 1500.17(a)(3) requires that fireworks intended 
to produce an audible effect contain no more than two (2) grains of 
pyrotechnic composition.
    6. The fireworks devices referenced in paragraph 4 are banned 
hazardous substances pursuant to section 2(q)(1)(B) of the FHSA, 15 
U.S.C. 1261(q)(1)(B), and 16 CFR 1500.17(a)(3).
    7. Respondents 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 
substances referenced in paragraph 4 above, in violation of sections 
4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c).

Respondents Response to Allegations

    8. Respondents deny the allegations of the staff set forth in 
paragraphs 4 through 7 above.

Agreement of the Parties

    9. The Commission has jurisdiction over this matter and over 
Respondents under the CPSA and the FHSA.
    10. The parties enter this Agreement for settlement purposes only. 
The Agreement does not constitute an admission by Respondents nor a 
determination by the Commission that Respondents knowingly violated the 
FHSA.
    11. In settlement of the staff's allegations, Respondents shall pay 
a civil penalty of one hundred thousand dollars ($100,000.00), for 
which all Respondents are jointly and severally liable, within twenty 
(20) calendar days of service of the Commission's final Order accepting 
this Agreement. The payment shall be by check and made payable to the 
order of the United States Treasury.
    12. Within six (6) months of service of the Commission's final 
Order, Respondents shall destroy at their own cost, the inventory of 
all violative fireworks referenced in Attachment A, subject to the 
terms and conditions set forth in paragraphs 13 through 16. Destruction 
of the fireworks shall be in accordance with all federal, state and 
local laws and regulations.
    13. Respondents shall provide the Commission staff with seven (7) 
days advance notice of the time and place of each destruction event so 
that a Commission investigator may witness the destruction. By 
witnessing a destruction event, CPSC does not prescribe nor approve 
specific methods of destruction as safe. At each destruction event, a 
principal or an employee authorized by a Respondent company principal 
shall complete and sign an affidavit of destruction, under the penalty 
of perjury. The affidavit shall identify the fireworks destroyed by 
model name, Commission sample number, and the number of units of 
destroyed. Respondents shall submit the signed Affidavit of Destruction 
to Michelle Gillice, Trial Attorney, Office of the General Counsel, 
U.S. Consumer Product Safety Commission, 4330 East West Highway, 
Bethesda, MD 20814, no later than seven (7) days after the destruction 
event.
    14. Should Respondents fail to destroy the entire inventory of 
violative fireworks referenced in Attachment A within six (6) months of 
service of the final Order, they shall be subject to additional 
penalties as set forth in paragraphs 15 and 16.
    15. Should Respondents fail to comply with the terms of destruction 
set forth in paragraphs 12 and 13 of this Agreement, Respondents shall 
pay a penalty of five thousand dollars ($5,000.00) in liquidated 
damages for each day such violation continues, for which all 
Respondents are jointly and severally liable, to the United States

[[Page 74010]]

Treasury. The amount of liquidated damages in this paragraph shall not 
exceed seven hundred and fifty thousand dollars ($750,000.00) in any 
one calendar year. The remedy in this paragraph shall be in addition to 
any other remedies available to the United States under the law.
    16. The penalties referenced in paragraph 15 will not be imposed if 
Respondents fail to meet the deadline in performing hereunder if such 
delay or default is caused by the following events or conditions beyond 
its reasonable control: force majeure or ``Acts of God'', wars, 
insurrections, and Government restrictions, and Respondents notify the 
Commission within seven (7) days of such event or condition with 
documentation evidencing the occurrence. Force majeure does not refer 
to: staff shortages; sick leaves; late supplies or shortcomings on the 
part of a third party contracted by Respondents. In case of force 
majeure or one of the above referenced events or conditions, provided 
Respondents notify the Commission within the allotted time frame, the 
destruction obligation will be temporarily suspended during the event 
or condition period to the extent that such performance is reasonably 
affected thereby.
    17. Upon the Commission's provisional acceptance of the Agreement, 
the Agreement shall be placed on the public record and published in the 
Federal Register in accordance with the procedures set forth in 16 CFR 
1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission 
does not receive any written requests not to accept the Agreement 
within 15 calendar days, the Agreement shall be deemed finally accepted 
on the 16th calendar day after the date it is published in the Federal 
Register.
    18. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Respondents knowingly, voluntarily and 
completely waive any rights they may have in this matter to the 
following: (i) An administrative or judicial hearing; (ii) judicial 
review or other challenge or contest of the validity of the 
Commission's Order or actions; (iii) a determination by the Commission 
as to whether Respondents failed to comply with the FHSA and the 
underlying regulations; (iv) a statement of findings of fact and 
conclusions of law; and (v) any claims under the Equal Access to 
Justice Act.
    19. The Commission may publicize the terms of the Agreement and 
Order.
    20. The Agreement and Order shall apply to, and be binding upon, 
Respondents and each of their successors and assigns.
    21. The Commission issues the Order under the provisions of the 
FHSA, and a violation of the Order may subject those referenced in 
paragraph 20 above to appropriate legal action.
    22. This 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. The Agreement shall not be waived, 
amended, modified, or otherwise altered without written agreement 
thereto executed by the party against whom such waiver, amendment, 
modification, or alteration is sought to be enforced.
    23. If any provision of this Agreement and Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and Order, such provision 
shall be fully severable. The balance of the Agreement and Order shall 
remain in full force and effect, unless the Commission and Respondents 
determine that severing the provision materially affects the purpose of 
the Agreement and Order.

RESPONDENTS

Dated: 10/5/10

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

Michael Marietta,
President, Jake's Fireworks, Inc., 2311 West 4th Street, Pittsburg, 
KS 66762.

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Michael Marietta,
President, Far East Imports, Inc., 2311 West 4th Street, Pittsburg, 
KS 66762.

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Jason Marietta,
Managing Member, Wholesale Fireworks Enterprises, LLC, 2311 West 4th 
Street, Pittsburg, KS 66762.

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Joan Ross,
President, Pacific Northwest Fireworks, Inc., 100 S. I Street, 
Aberdeen, Washington.

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

Hal Stratton,
Counsel for Jake's Fireworks, Inc., Far East Imports, Inc., 
Wholesale Fireworks Enterprises, LLC, Pacific Northwest Fireworks, 
Inc., Brownstein Hyatt Farber Schreck, LLP, Albuquerque, NM 87102.

U.S. Consumer Product Safety Commission

Cheryl Falvey,
General Counsel.
Ronald G. Yelenik,
Assistant General Counsel, Office of the General Counsel.

Dated: 11/18/10

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

Michelle Faust Gillice,

Trial Attorney, Division of Compliance, Office of the General 
Counsel.

                    Attachment A--Violative Fireworks
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            Sample No.                           Model name
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07-810-4038......................  Loyal To None.
07-810-4039......................  Megabanger Firecracker.
07-810-4042......................  One Bad Mother.
07-810-4044......................  One Bad Mother.
07-810-4045......................  Loyal To None.
07-810-4046......................  Megatron.
07-810-4103......................  Cooking with Gas.
07-810-4104......................  The Big Dog.
07-810-4106......................  One Bad Mother 16 Shot.
07-810-4111......................  Time Is On My Side.
07-810-4118......................  Loyal To None.
07-810-4119......................  Scorpions.
07-810-4212......................  Loyal To None.
07-810-4420......................  Megabanger Megatron.
07-810-4565......................  One Bad Mother.
07-810-4584......................  Extreme Machine.
07-810-4587......................  Vendicator.
07-810-4588......................  The Big Package.
07-810-4589......................  Return To Glory.
07-801-4590......................  One Bad Mother.
07-810-4624......................  Loyal To None.
07-810-4627......................  World Class Boom Boom.
07-810-4828......................  Loyal To None.
07-810-4830......................  Return To Glory.
07-810-4914......................  Catastrophic 9 Shot.
07-810-5008......................  Truckin Home.
07-810-5009......................  Professional 3 Pack.
07-810-5010......................  BF Assorted Cakes.
07-810-5012......................  Spyder, Brown Label.
07-810-5018......................  7 Wonders of the World.
07-810-5048......................  Not In My Yard.
07-810-5064......................  Loyal To None.
07-810-5066......................  Megatron.
07-810-5095......................  One Bad Mother.
07-810-5096......................  Loyal To None.
07-810-5098......................  Megatron.
07-810-5330......................  Spyder, Brown Label.
07-810-5332......................  Cocky.
07-810-5474......................  10 Ball Bang.
07-810-5475......................  Can You Handle It?
07-810-5476......................  Megabanger Megatron.
07-810-5481......................  One Bad Mother.
07-810-5482......................  Loyal To None.
07-810-5483......................  One Bad Mother.
07-810-5484......................  Loyal To None.
07-810-5490......................  Loyal To None.
07-810-5491......................  One Bad Mother.
07-810-5511......................  B.M.F.
07-810-5512......................  Big Sexy.
07-810-5514......................  Perfection.
07-810-5656......................  The Big Package.
07-810-5793......................  One Bad Mother.
07-810-5794......................  Red White & Blue Forever.
07-840-6029......................  Loyal To None.
07-840-6030......................  The Big Package.
07-840-6263......................  Multishot Shell.
07-840-6371......................  Hydrogen Bomb.
07-840-6542......................  Festival Balls.
07-840-6548......................  One Bad Mother.
07-840-6551......................  Premium Bottle Rocket.
07-840-6552......................  One Bad Mother.
07-840-6603......................  Loyal To None.
07-840-6681......................  One Bad Mother/Shell.
07-840-6682......................  Loyal To None/Shell.
07-840-6683......................  Megatron/Shell.
07-840-6737......................  Loyal To None.
07-840-6846......................  One Bad Mother.

[[Page 74011]]

07-840-6847......................  Merlin's Match.
07-840-6849......................  Vendicator.
07-840-6865......................  The Best of the Best.
07-840-6867......................  Flashing Thunder.
07-840-6869......................  Loyal To None.
07-840-6904......................  Loyal To None.
07-840-7267......................  The Big Package.
07-840-7269......................  One Bad Mother.
07-840-7283......................  One Bad Mother.
07-840-7291......................  One Bad Mother.
07-840-7292......................  Loyal To None.
07-840-7297......................  Instigator.
07-840-7304......................  Loyal To None.
07-840-7305......................  One Bad Mother.
07-840-7317......................  Saturn Missle Battery.
07-840-7319......................  Loyal To None.
07-840-7320......................  One Bad Mother.
07-840-7321......................  One Bad Mother.
07-840-7324......................  Red White & Blue Forever.
07-840-7328......................  Festival Balls.
07-840-7467......................  Loyal To None.
07-840-7468......................  So What Are You Looking At?
07-840-7486......................  Loyal To None.
07-840-7289......................  Whistling Chaser.
07-810-5036......................  Return To Glory.
07-810-5037......................  One Bad Mother 9 Shot.
07-810-5041......................  World Class Loyal To None.
07-840-6890......................  Grave Digger.
07-840-6891......................  Megabanger Megatron.
07-840-6892......................  Megabanger Just Bad.
07-840-7091......................  Loyal To None.
07-840-7197......................  One Bad Mother.
07-840-7207......................  Loyal To None.
07-840-7208......................  The Big Package.
07-840-7209......................  Jumbo Smoke Balls.
07-810-5494......................  Loyal To None.
07-810-5738......................  Loyal To None.
07-810-5739......................  Loyal To None.
07-810-5740......................  Loyal To None.
07-810-5781......................  So What Are You Looking At?
07-810-5782......................  Saturn Missle Battery.
07-810-5785......................  Loyal To None.
07-810-5786......................  The Big Dog.
07-810-5788......................  Extreme Machine.
07-810-5790......................  Loyal To None.
07-810-5791......................  Loyal to None.
07-810-5792......................  Loyal To None.
07-840-7282......................  Loyal To None.
07-840-7288......................  Loyal To None.
------------------------------------------------------------------------

Order

    Upon consideration of the Settlement Agreement entered into between 
Jake's Fireworks, Inc., Far East Imports, Inc., Wholesale Fireworks 
Enterprises, LLC and Pacific Northwest Fireworks, Inc., (hereinafter, 
``Respondents'') and the staff of the United States Consumer Product 
Safety Commission (``Commission''), and the Commission having 
jurisdiction over the subject matter and over Respondents, and it 
appearing that the Settlement Agreement and Order are in the public 
interest, it is
    Ordered, that the Settlement Agreement, be and hereby is, accepted; 
and it is
    Further ordered, that Respondents shall pay a civil penalty in the 
amount of one hundred thousand dollars ($100,000.00) within twenty (20) 
calendar days of service of the Commission's final Order accepting the 
Agreement. The payment shall be made by check payable to the order of 
the United States Treasury. Upon the failure of Respondents to make the 
foregoing payment when due, interest on the unpaid amount shall accrue 
and be paid by Respondents at the federal legal rate of interest set 
forth at 28 U.S.C. 1961(a) and (b); and it is
    Further ordered, that within six (6) months of service of the Final 
Order, in accordance with the terms set forth in the Settlement 
Agreement, Respondents shall destroy at their own cost, the entire 
inventory of violative fireworks referenced in Attachment A to the 
Settlement Agreement. Upon the failure of Respondents to comply with 
the terms of destruction set forth in the Settlement Agreement, the 
firm agrees to pay to the United States of America, five thousand 
dollars in liquidated damages for each day such violation continues. 
The amount of liquidated damages in this paragraph shall not exceed 
$750,000.00 in any one calendar year;

    Provisionally accepted and provisional Order issued on the 24th 
day of November 2010.

    By Order of the Commission.
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Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.

[FR Doc. 2010-30073 Filed 11-29-10; 8:45 am]
BILLING CODE 6355-01-P
```