[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Notices]
[Pages 19027-19029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9046]



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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 95-C0010]


Giant Bicycle 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.

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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)-
(h). Published below is a provisionally-accepted Settlement Agreement 
with Giant Bicycle 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 May 1, 1995.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 95-C0010, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT: Melvin I. Kramer, Trial Attorney, 
Office of Compliance and Enforcement, Consumer Product Safety 
Commission, Washington, D.C. 20207; telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    [[Page 19028]] Dated: April 7, 1995.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. Giant Bicycle, Inc. (hereinafter, ``Giant''), a corporation, 
enters into this Settlement Agreement (hereinafter, ``Agreement'') with 
the staff of the Consumer Product Safety Commission, and agrees to the 
entry of the Order described herein. The purpose of the Agreement and 
Order is to settle the staff's allegations that Giant knowingly caused 
the introduction into commerce of certain banned hazardous substances, 
namely bicycles, that did not comply with the Commission's Requirements 
for Bicycles, 16 CFR Part 1512, in violation of section 4(a) of the 
Federal Hazardous Substances Act (FHSA), 15 U.S.C. Sec. 1263(a).

I. Jurisdiction

    2. The Commission has jurisdiction over Giant and the subject 
matter of this Settlement Agreement pursuant to sections 3(a)(1) and 
30(a) of the Consumer Product Safety Act (hereinafter, ``CPSA''), 15 
U.S.C. Secs. 2052(a)(1) and 2079(a), and sections 2(f)(1)(D), 4(a) and 
5(c) of the FHSA, 15 U.S.C. Secs. 1261(f)(1)(D), 1263(a) and 1264(c).

II. The Parties

    3. 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 CPSA, 15 U.S.C. Sec. 2053.
    4. Giant is a corporation organized and existing under the laws of 
the State of Virginia with its principal corporate offices located at 
475 Apra St., Rancho Dominguez, CA 90220. Giant is engaged, among other 
things, in the business of importing and selling in the United States 
children's bicycles.

III. Allegations of the Staff

    5. From at least October 1993, to January 1995, Giant introduced 
into interstate commerce approximately 1,000 of several models of 
bicycles. These bicycles failed to comply with various sections of the 
Commission's Requirements for Bicycles, (16 CFR Part 1512) including, 
but not limited to, violations of Sec. 1512.16 (requirements for 
reflectors) and Sec. 1512.15 (requirements for seats).
    6. Because these bicycles failed to meet the requirements of the 
Requirements for Bicycles, each of them is a banned hazardous substance 
under 16 CFR 1500.18(a)(12) of the FHSA regulations and section 
2(q)(1)(A) of the FHSA, 15 U.S.C. 1261(q)(1)(A). The knowing 
introduction or delivery for introduction into interstate commerce, or 
the receipt in interstate commerce and the delivery or proffered 
delivery thereof for pay, of these banned hazardous substances by Giant 
are prohibited acts pursuant to section 4 (a) and (c) of the FHSA, 15 
U.S.C. Sec. 1263 (a) and (c) and subjects the firm to civil penalties 
under section 5(c) of the FHSA, 15 U.S.C. 1264(c)(1).

IV. Response of Giant

    7. Giant denies the allegations of the staff that it has knowingly 
introduced or delivered for introduction into commerce, or that it 
received in interstate commerce and delivered or proffered for delivery 
thereof for pay the aforesaid bicycles, or that it has violated the 
FHSA in any way.

V. Agreement of the Parties

    8. The Consumer Product Safety Commission has jurisdiction over 
Giant and the subject matter of this Settlement Agreement and Order 
under the following acts: Consumer Product Safety Act (15 U.S.C. 
Sec. 2051 et seq.), and the Federal Hazardous Substances Act, 15 U.S.C. 
1261 et seq.
    9. Giant agrees to pay to the Commission the amount of Eighty-Five 
Thousand Dollars ($85,000), as set forth in the attached Order and 
incorporated herein by reference, and further agrees to take the agreed 
upon corrective actions regarding the allegedly violative products 
which are the subject of this Agreement.
    10. The Commission does not make any determination that Giant 
knowingly violated the FHSA. The Commission and Giant agree that this 
Agreement is entered into for the purposes of settlement only.
    11. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Giant 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 Giant failed to comply with the FHSA as aforesaid, and (4) to a 
statement of findings of fact and conclusions of law.
    12. For purposes of section 6(b) of the CPSA, 15 U.S.C. 
Sec. 2055(b), this matter shall be treated as if a complaint had been 
issued; and, the Commission may publicize the terms of the Settlement 
Agreement and Order.
    13. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on the public record and shall be published 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 request 
not to accept the Settlement Agreement and Order within 15 days, the 
Settlement Agreement and Order will be deemed finally accepted on the 
16th day after the date it is published in the Federal Register.
    14. The parties further agree that the Commission shall issue the 
attached Order, incorporated herein by reference; and that a violation 
of the Order shall subject Giant to appropriate legal action.
    15. Agreements, understandings, representations, or interpretations 
made outside of this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.
    16. The provisions of the Settlement Agreement and Order shall 
apply to Giant and each of its successors and assigns.

    Dated: April 5, 1995.

    Respondent Giant Bicycle, Inc.
    By: Nicholas Andrade,
Senior Vice President, Giant Bicycle, Inc. 475 Apra St., Rancho 
Dominguez, CA 90220.
    Commission Staff
David Schmeltzer,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Acting Director, Office of Compliance, Division of Administrative 
Litigation.
    Dated: April 6, 1995.

    By: Melvin I. Kramer,
Trial Attorney, Office of Compliance, Division of Administrative 
Litigation.
    Provisionally accepted and Provisional Order issued on the 7th 
day of April, 1995.

    By Order Of The Commission:
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.

Order

    Upon consideration of the Settlement Agreement entered into between 
respondent Giant Bicycle, Inc., a corporation, and the staff of the 
Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Giant; and it appearing that 
the Settlement Agreement is in the public interest, it is
    Ordered, that the Settlement Agreement be and hereby is accepted; 
and it is
    Further Ordered, that within 20 days of service of this final Order 
upon Giant, Giant shall pay to the Order of the [[Page 19029]] Consumer 
Product Safety Commission the amount of Eighty-Five Thousand Dollars 
($85,000).

[FR Doc. 95-9046 Filed 4-13-95; 8:45 am]
BILLING CODE 6355-01-M