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 


pwalker on PROD1PC71 with NOTICES
59260 Federal Register / Vol. 72, No. 202 / Friday, October 19, 2007 / Notices 

report, which documented the fire 

investigator’s simulated test of the 

compressor, until January 20, 2006. TAP 

did not have sufficient information to 

reasonably support the conclusion that 

it should file a section 15(b) report until 

January 20, 2006. 

17. TAP enters into this Settlement 

Agreement and Order to avoid incurring 

additional legal costs and expenses. In 

settling this matter, TAP does not admit 

any fault, liability, or statutory or 

regulatory violation, and this Settlement 

Agreement and Order do not constitute 

and are not evidence of any fault or 

wrongdoing on the part of TAP. 

IV. Agreement of the Parties 

18. The Commission has jurisdiction 

over this matter and over TAP under the 

Consumer Product Safety Act, 15 U.S.C. 

2051–2084. 

19. In settlement of the staff’s 

allegations, TAP agrees to pay a civil 

penalty in the amount of $100,000.00 as 

set forth in the attached incorporated 

Order. 

20. The parties enter this Settlement 

Agreement for settlement purposes only. 

The Settlement Agreement does not 

constitute an admission by TAP or a 

determination by the Commission that 

TAP violated the CPSA’s reporting 

requirements in accordance with 16 

CFR 1118.20(f). 

21. Upon provisional acceptance of 

this Settlement Agreement by the 

Commission, the Commission shall 

place this Agreement and Order on the 

public record and shall publish it in the 

Federal Register in accordance with the 

procedures set forth in 16 CFR 

1118.20(e). Unless the Commission 

receives a written request not to accept 

the Settlement Agreement and Order 

within 15 calendar days, the Agreement 

will be deemed finally accepted on the 

16th calendar day after the date it is 

published in the Federal Register in 

accordance with 16 CFR 1118.20(f). 

22. Upon final acceptance of this 

Settlement Agreement by the 

Commission and issuance of the Final 

Order, TAP knowingly, voluntarily, and 

completely waives any rights it 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 actions; (iii) a 

determination by the Commission as to 

whether TAP failed to comply with the 

CPSA and the underlying regulations; 

(iv) a statement of findings of fact or 

conclusions of law; and (v) any claims 

under the Equal Access to Justice Act. 

23. The Commission may publicize 

the terms of the Settlement Agreement 

and Order. 

24. This Settlement Agreement and 

Order shall apply to, and be binding 

upon TAP and each of its successors 

and assigns. 

25. The Commission’s Order in this 

matter is issued under the provisions of 

the CPSA, 15 U.S.C. 2051–2084, and a 

violation of this Order may subject TAP 

to appropriate legal action. 

26. This Settlement Agreement may 

be used in interpreting the Order. 

Agreements, understandings, 

representations, or interpretations made 

outside of this Settlement Agreement 

and Order may not be used to vary or 

contradict its terms. 

27. This Settlement Agreement shall 

not be waived, changed, amended, 

modified, or otherwise altered without 

written agreement thereto executed by 

TAP and approved by the Commission. 

28. If after the effective date hereof, 

any provision of this Settlement 

Agreement and Order is held to be 

illegal, invalid, or unenforceable under 

present or future laws effective during 

the terms of the Settlement Agreement 

and Order, such provisions shall be 

fully severable. The rest of Settlement 

Agreement and Order shall remain in 

full effect, unless the Commission and 

TAP jointly determine that severing the 

provision materially changes the 

purpose of the Settlement Agreement 

and Order. 

TAP Enterprises, Inc. 

d/b/a Cummins Industrial Tools. 

Dated: September 6, 2007. 

Christopher K. Lyon, 

Vice President, TAP Enterprises, Inc., d/b/a/ 

Cummins Industrial Tools, 650 North 

Lincoln, Spring Hill, KS 66083. 

Dated: September 14, 2007. 

Jill M. Zucker, Esquire, 

Bryan Cave, LLP, 

Attorney for TAP Enterprises, Inc., d/b/a 

Cummins Industrial Tools, 700 Thirteenth 

Street, NW., Washington, DC 20005–3906. 

Consumer Product Safety Commission. 

John Gibson Mullan, 

Assistant Executive Director, Office of 

Compliance and Field Operations, 

Consumer Product Safety Commission, 

4330 East West Highway, Bethesda, MD 

20814. 

Ronald G. Yelenik, 

Acting Director, Legal Division, Office of 

Compliance and Field Operations. 

Dated: September 17, 2007. 

Dennis C. Kacoyanis, 

Trial Attorney, Legal Division, Office of 

Compliance and Field Operations. 

Order 

Upon consideration of the Settlement 

Agreement entered into between TAP 

Enterprises, Inc., d/b/a Cummins 

Industrial Tools (‘‘TAP’’) and the staff of 

the Consumer Product Safety 

Commission (‘‘the Commission’’); and 

the Commission having jurisdiction 

over the subject matter and TAP; 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 TAP shall pay a 

civil penalty of ONE HUNDRED 

THOUSAND DOLLARS ($100,000.00) to 

the United States Treasury in four 

installments as follows: TWENTY-FIVE 

THOUSAND DOLLARS ($25,000.00) 

shall be paid within twenty (20) 

calendar days of service of the Final 

Order upon TAP; TWENTY-FIVE 

THOUSAND DOLLARS ($25,000.00) 

shall be paid within 180 days of service 

of the Final Order upon TAP; TWENTYFIVE THOUSAND DOLLARS 

($25,000.00) shall be paid within 270 

days of service of the Final Order upon 

TAP; and TWENTY-FIVE THOUSAND 

DOLLARS ($25,000.00) shall be paid 

within 365 days of service of the Final 

Order upon TAP. Upon the failure of 

TAP to make any of the foregoing 

payments when due, the entire amount 

of the civil penalty shall become due 

and payable, and 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 15th 

day of October, 2007. 

By Order of the Commission, 

Todd A. Stevenson, 

Secretary, Consumer Product Safety 

Commission. 

[FR Doc. 07–5152 Filed 10–18–07; 8:45 am] 

BILLING CODE 6355–01–M 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Transmittal Nos. 08–03] 

36(b)(1) Arms Sales Notification 

AGENCY: Department of Defense, Defense 

Security Cooperation Agency. 

ACTION: Notice. 

SUMMARY: The Department of Defense is 

publishing the unclassified text of a 

section 36(b)(1) arms sales notification. 

This is published to fulfill the 

requirements of section 155 of Public 

Law 104–164 dated 21 July 1996. 

FOR FURTHER INFORMATION CONTACT: Ms. 

B. English, DSCA/DBO/CFM, (703) 601–

3740. 


pwalker on PROD1PC71 with NOTICES