Source: http://thefederalregister.com/2012/10/17/2012-25507.html
Timestamp: 2018-02-22 12:41:10
Document Index: 797604812

Matched Legal Cases: ['§ 1118', '§ 2051', '§ 2052', '§ 2064', '§ 2068', '§ 2069', '§ 2069', '§ 2064', '§ 547', '§ 547', '§ 548', '§ 547', '§ 547', '§ 362', '§ 1118', '§ 1118', '§ 1961']

Federal Register | Aqua-Leisure Industries, Inc., Provisional Acceptance of a Se
[CPSC Docket No. 13-C0001]
SUMMARY: It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in theFederal Registerin accordance with the terms of 16 CFR 1118.20(e). Published below is a provisionally-accepted Settlement Agreement with Aqua-Leisure Industries, Inc., containing a civil penalty of $650,000.00, within twenty (20) days of service of the Commission's final Order accepting the Settlement Agreement.
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 1, 2012.
ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 13-C0001, Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 820, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Jennifer W. Feinberg, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7843.
Dated: October 12, 2012. Todd A. Stevenson, Secretary. UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: Aqua-Leisure Industries, Inc. CPSC Docket No.:13-C0001 SETTLEMENT AGREEMENT AND ORDER
1. In accordance with 16 C.F.R. § 1118.20, Aqua-Leisure Industries, Inc. (“Aqua Leisure”) and staff (“Staff”) of the United States Consumer Product Safety Commission (“Commission” or “CPSC”) hereby enter into this Settlement Agreement (“Agreement”) under the Consumer Product Safety Act (“CPSA”), 15 U.S.C. §§ 2051-2089. The Agreement and the attached Order resolve Staff's allegations set forth below.
4. The Subject Products are “consumer products” and, at all relevant times, Aqua Leisure was a “manufacturer” of “consumer products,” which were “distribute[d] in commerce,” as those terms are defined or used in sections 3(a)(5), (8), and (11) of the CPSA, 15 U.S.C. § 2052(3)(a)(5), (8), and (11).
18. Although well before May 21, 2009, Aqua Leisure had obtained sufficient information to reasonably support the conclusion that the Subject Products contained a defect that could create a substantial product hazard, or created an unreasonable risk of serious injury or death, Aqua Leisure failed to inform the Commission immediately of such defect or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. § 2064(b)(3) and (4). In failing to inform the Commission immediately of the defect or advising that the defect involved the Subject Products, Aqua Leisure 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).
19. Pursuant to section 20 of the CPSA, 15 U.S.C. § 2069, Aqua Leisure is subject to civil penalties for its knowing failure to report, as required under section 15(b) of the CPSA, 15 U.S.C. § 2064(b).
20. The Firm denies staff's allegations that it knew that the Subject Products containeddefects which could create a substantial product hazard pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a), and further denies that it knowingly violated the reporting requirements of section 15(b) of the CPSA, 15 U.S.C. 2064(b).
24. In settlement of Staff's allegations, Aqua Leisure consents to the entry of the attached Order (“Order”) as set forth below, and will pay a civil penalty in the amount of six hundred fifty thousand dollars ($650,000.00) (the “Settlement Amount”), two hundred fifty thousand ($250,000.00) of which will be paid within twenty (20) days of the date this Order becomes final, and the remaining four hundred thousand ($400,000.00) of which will be paid within one hundred twenty (120) days of the date this Order becomes final. The payment shall be made to the CPSC viawww.pay.gov.
25. Aqua Leisure warrants that it has reviewed its financial situation and that it currently is solvent within the meaning of 11 U.S.C. §§ 547(b)(3) and 548(a)(1)(B)(ii)(I), and shall remain solvent following payment to the United States of the Settlement Amount. Further, the parties warrant that, in evaluating whether to execute this Agreement, they (a) have intended that the mutual promises, covenants, and obligations set forth constitute a contemporaneous exchange for new value given to Aqua Leisure, within the meaning of 11 U.S.C. § 547(c)(1), and (b) conclude that these mutual promises, covenants and obligations do, in fact, constitute such contemporaneous exchange. Further, the parties warrant that the mutual promises, covenants, and obligations set forth herein are intended to, and do, in fact, represent a reasonably equivalent exchange of value that is not intended to hinder, delay, or defraud any entity to which Aqua Leisure was or became indebted to on or after the date of transfer, within the meaning of 11 U.S.C. § 548(a)(1).
a. Aqua Leisure's obligations under this Agreement may not be avoided pursuant to 11 U.S.C. § 547, and Aqua Leisure shall not argue or otherwise take the position in any such case, proceeding, or action that: (i) Aqua Leisure's obligations under this Agreement may be avoided under 11 U.S.C. § 547; (ii) Aqua Leisure was insolvent at the time this Agreement was entered into, or became insolvent as a result of the payment made to the United States; or (iii) mutual promises, covenants, and obligations set forth in this Agreement do not constitute a contemporaneous exchange for new value given to Aqua Leisure.
b. If Aqua Leisure's obligations under this Agreement are avoided for any reason, including, but not limited to, through the exercise of a trustee's avoidance powers under the Bankruptcy Code, the United States, at its sole option, may rescind the releases in this Agreement and bring any civil and/or administrative claim, action or proceeding against Aqua Leisure. Aqua Leisure agrees that (i) any such action or proceeding brought by the United States seeking payment according to the Order set forth herein are enforcement actions that are not subject to an “automatic stay” pursuant to 11 U.S.C. § 362(a) as a result of the action, case or proceedings described in the first clause of this Paragraph and Aqua Leisure shall not argue or otherwise contend that the United States' action or proceeding is subject to an automatic stay and therefore barred; (ii) Aqua Leisure shall not plead, argue or otherwise raise any defenses under the theories of statute of limitations, laches, estoppels, or similar theories, to any such civil or administrative claims, actions or proceedings that are brought by the United States within 10 calendar days of written notification to Aqua Leisure that the releases have been rescinded pursuant to this Paragraph; and (iii) the United States has a valid claim against Aqua Leisure in the amount of $1.875 million and the United States may pursue its claim in the case, action or proceeding referenced in the first clause of this Paragraph, as well as in any other case, action or proceeding.
30. Upon provisional acceptance of the Agreement by the Commission, the Agreement shall be placed on the public record and published in theFederal Register, in accordance with the procedures set forth in 16 C.F.R. § 1118.20(e). If the Commission does not receive any written request not to accept the Agreement within fifteen (15) calendar days, the Agreement shall be deemed finally accepted on the 16th calendar day after the date it is published in theFederal Register, in accordance with 16 C.F.R. § 1118.20(f).
UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: Aqua-Leisure Industries, Inc. CPSC Docket No.:13-C0001 ORDER
ORDEREDthat the Agreement be, and is, hereby, accepted; and it is
FURTHER ORDERED, that Aqua Leisure shall pay a civil penalty in the total amount of six hundred fifty thousand dollars ($650,000.00), with two hundred fifty thousand dollars ($250,000.00) paid within twenty (20) days of service of the Commission's Order upon counsel for Aqua Leisure, and the remaining four hundred thousand ($400,000.00) paid within one hundred twenty (120) days of service. The payments shall be made electronically to the CPSC viawww.pay.gov.Upon the failure of Aqua Leisure to make the foregoing payments when due, interest on the unpaid amount shall accrue and be paid by Aqua Leisure at the federal legal rate of interest set forth at 28 U.S.C. § 1961(a) and (b). If Aqua Leisure fails to make such payments as set forth in the Agreement, such conduct will be considered a violation of this Agreement and Order.
Provisionally accepted and provisional Order issued on the11thday ofOctober,2012.
Todd A. Stevenson, Secretary U.S. Consumer Product Safety Commission