Federal Register / Vol. 72, No. 202 / Friday, October 19, 2007 / Notices 59259 

COMMODITY FUTURES TRADING 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 11 a.m., Friday, 

November 30, 2007. 

PLACE: 1155 21st St., NW., Washington, 

DC, 9th Floor Commission Conference 

Room. 

STATUS: Closed. 

MATTERS TO BE CONSIDERED: Surveillance 

Matters. 

CONTACT PERSON FOR MORE INFORMATION: 

Sauntia S. Warfield, 202–418–5084. 

David A. Stawick, 

Secretary of the Commission. 

[FR Doc. 07–5183 Filed 10–16–07; 4:41 pm] 

BILLING CODE 6351–01–M 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 08–C0001] 

TAP Enterprises, Inc., d/b/a Cummins 

Industrial Tools, a Corporation; 

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 TAP 

Enterprises, Inc., d/b/a Cummins 

Industrial Tools, a corporation, 

containing a civil penalty of $100,000. 

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 

5, 2007. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to the 

Comment 08–C0001, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Room 502, Bethesda, Maryland 20814–

4408. 

FOR FURTHER INFORMATION CONTACT: 

Dennis C. Kacoyanis, Trial Attorney, 

Office of Compliance and Field 

Operations, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, Maryland 20814–4408; 

telephone (301) 504–7587. 

SUPPLEMENTARY INFORMATION: The text of 

the Agreement and Order appears 

below. 

Dated: October 15, 2007. 

Todd A. Stevenson, 

Secretary. 

I. Settlement Agreement and Order 

1. This Settlement Agreement is made 

by and between the staff (‘‘the staff’’) of 

the U.S. Consumer Product Safety 

Commission (‘‘the Commission’’) and 

TAP Enterprises, Inc., d/b/a/ Cummins 

Industrial Tools. (‘‘TAP’’), a corporation, 

in accordance with the Commission’s 

Procedures for Investigations, 

Inspections, and Inquiries under the 

Consumer Product Safety Act (‘‘CPSA’’), 

16 CFR 1118.20. This Settlement 

Agreement and the incorporated 

attached Order settle the staff’s 

allegations set forth below. 

II. The Parties 

2. The Commission is an independent 

federal regulatory agency responsible for 

the enforcement of the CPSA, 15 U.S.C. 

2051–2084. 

3. TAP is a corporation organized and 

existing under the laws of the State of 

Kansas with its principal corporate 

office located at 650 North Lincoln, 

Spring Hill, KS 66083. TAP is an 

importer and retailer of consumer 

products. 

III. Allegations of the Staff 

4. Between June 2004 and March 

2006, TAP imported and sold 

nationwide approximately 11,300 Mini 

2-Gallon Pancake Compressors (‘‘air 

compressor(s)’’), Model Number 2112. 

5. The air compressors are ‘‘consumer 

products’’ and at the times relevant 

herein, TAP was a ‘‘manufacturer’’ and 

a ‘‘retailer’’ of those consumer products, 

which were ‘‘distributed in commerce,’’

as those terms are defined in sections 

3(a)(1), (4), (6), (11), and (12) of the 

CPSA, 15 U.S.C. 2052(a)(1), (4), (6), (11), 

and (12). 

6. The air compressors are defective 

because they contain an undersized 

power cord which can overheat and 

pose a fire hazard. In addition, improper 

assembly of the power cord strain relief 

component and improper routing of 

internal conductors can cause a shock 

hazard to consumers. 

7. On or about October 15, 2004, TAP 

learned from an insurance company of 

an October 12, 2004 incident, in which 

a consumer’s workshop/studio caught 

fire as a result of an allegedly defective 

air compressor. The fire caused $30,000 

in property damage. 

8. On or about June 30, 2005, the 

Commission’s Clearinghouse sent TAP 

the investigational report of the October 

12, 2004 incident conducted by a 

Commission investigator. 

9. In September 2005, TAP received 

an incident report in which a consumer 

alleged that smoke was coming out of 

his air compressor. Moreover, before 

September 2005, TAP became aware of 

a number of warranty claims involving 

the air compressors, which appear to 

relate to the defects described in 

paragraph 6. 

10. Although TAP obtained sufficient 

information to reasonably support the 

conclusion that the air compressors 

contained a defect which could create a 

substantial product hazard or created an 

unreasonable risk of serious injury or 

death, TAP failed to immediately inform 

the Commission of such defect or risk as 

required by sections 15(b)(2) and (3) of 

the CPSA, 15 U.S.C. 2064(b)(2) and (3). 

11. By failing to furnish information 

as required by section 15(b) of the 

CPSA, 15 U.S.C. 2064(b), TAP 

knowingly violated section 19(a)(4) of 

the CPSA, 15 U.S.C. 2068(a)(4), as the 

term ‘‘knowingly’’ is defined in section 

20(d) of the CPSA, 15 U.S.C. 2069(d). 

12. Pursuant to section 20 of the 

CPSA, 15 U.S.C. 2069, TAP is subject to 

civil penalties for its failure to report 

under section 15(b) of the CPSA, 15 

U.S.C. 2064(b). 

III. TAP’s Response 

13. TAP denies the staff’s allegations 

that it violated the CPSA as set forth in 

paragraphs 4 through 12 above. 

14. TAP asserts that for purposes of 

this Settlement Agreement and Order, it 

is a ‘‘manufacturer’’ as defined by 

section 3(a)(4) of the CPSA, 15 U.S.C. 

2052(a)(4), solely because it is an 

importer of the subject air compressors. 

TAP asserts, however, that it did not 

manufacture the air compressors, nor 

has it manufactured other consumer 

products. 

15. TAP specifically contests and 

denies the allegations that it became 

aware of a number of safety-related 

warranty claims involving the air 

compressor before September 2005. 

Rather, TAP asserts that prior to 

September 2005, it had received 

warranty claim requests from consumers 

that identified only performance-related 

problems with the compressor (e.g., 

‘‘not working,’’ ‘‘motor froze,’’ ‘‘won’t 

build pressure,’’ ‘‘etc.’’). These warranty 

claim requests identified typical 

performance issues associated with 

compressors, and they did not infer that 

there were any potential safety-related 

issues associated with the product. 

16. TAP further asserts that the CPSC 

did not provide TAP with a copy of a 

March 28, 2005, CPSC investigational 


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