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Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order

American Government Special Collections Reference Desk

American Government Topics:  Kawasaki Teryx4

Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order

Todd A. Stevenson
Consumer Product Safety Commission
5 June 2017


[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)]
[Notices]
[Pages 25779-25783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11567]


=======================================================================
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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 17-C0004]


Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; 
and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance 
of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

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 the Consumer 
Product Safety Commission's regulations. Published below is a 
provisionally-accepted Settlement Agreement with Kawasaki Heavy 
Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors 
Manufacturing Corp., U.S.A., containing a civil penalty in the amount 
of five million, two hundred thousand dollars ($5,200,000), within 
thirty (30) 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 June 20, 2017.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 17-C0004, Office of the 
Secretary, Consumer Product Safety

[[Page 25780]]

Commission, 4330 East-West Highway, Room 820, Bethesda, Maryland 20814-
4408.

FOR FURTHER INFORMATION CONTACT: Philip Z. Brown, Trial Attorney, 
Division of Compliance, Office of the General Counsel, Consumer Product 
Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7645.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.\1\
---------------------------------------------------------------------------

    \1\ The Commission voted (4-1) to provisionally accept the 
Settlement Agreement and Order regarding Kawasaki Heavy Industries, 
Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors 
Manufacturing Corp., U.S.A. Commissioner Adler, Commissioner Kaye, 
Commissioner Robinson and Commissioner Mohorovic voted to 
provisionally accept the Settlement Agreement and Order. Acting 
Chairman Buerkle voted to reject the Settlement Agreement and Order.

    Dated: May 31, 2017.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: Kawasaki Heavy Industries, LTD.; Kawasaki 
Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., 
U.S.A.

CPSC Docket No.: 17-C0004

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
Sec. Sec.  2051-2089 (``CPSA'') and 16 C.F.R. Sec.  1118.20, Kawasaki 
Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki 
Motors Manufacturing Corp., U.S.A. (collectively, ``Kawasaki''), and 
the United States Consumer Product Safety Commission (``Commission''), 
through its staff, hereby enter into this Settlement Agreement 
(``Agreement''). The Agreement and the incorporated attached Order 
resolve staff's charges set forth below.

THE PARTIES

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for, the enforcement of the 
CPSA, 15 U.S.C. Sec. Sec.  2051-2089. By executing the Agreement, staff 
is acting on behalf of the Commission, pursuant to 16 C.F.R. Sec.  
1118.20(b). The Commission issues this Order under the provisions of 
the CPSA.
    3. Kawasaki Heavy Industries, Ltd. (``KHI'') is a corporation, 
organized and existing under the laws of Japan, with its principal 
place of business in Japan.
    4. Kawasaki Motors Corp., U.S.A. (``KMC'') is a corporation, 
organized and existing under the laws of the state of Delaware, with 
its principal place of business in Foothill Ranch, CA. KMC is a wholly-
owned subsidiary of KHI.
    5. Kawasaki Motors Manufacturing Corp., U.S.A. (``KMM'') is a 
corporation, organized and existing under the laws of the state of 
Nebraska, with its principal place of business in Lincoln, NE. KMM is a 
wholly-owned subsidiary of KHI.

STAFF CHARGES

    6. Between October 2011 and December 2015, Kawasaki manufactured, 
distributed, and offered for sale in the United States approximately 
11,000 model year 2012 and 2013 Teryx4 750 4x4s (``Teryx4 750'') and 
approximately 19,500 2014-2016 model year Teryx4 800 4x4s (``Teryx4 
800'') and Teryx 800 4x4s (``Teryx 800'') (collectively, ``Teryxs'' or 
``Subject Products''). The Teryxs are four-wheel recreational off-
highway vehicles that have automotive style controls and seating for 
two or four persons, depending on model type.
    7. KMM manufactures and assembles the Subject Products, which are 
then sold to KMC for distribution.
    8. KMC is responsible for, among other things, the distribution, 
marketing, and Quality Assurance of the Subject Products in the United 
States.
    9. KHI is primarily responsible for the design, development, and 
engineering of the Subject Products. KHI retains ultimate control over 
the operations of KMC and KMM, including retaining recall authority.
    10. The Teryxs are a ``consumer product,'' ``distribut[ed] in 
commerce,'' as those terms are defined or used in sections 3(a)(5) and 
(8) of the CPSA, 15 U.S.C. Sec.  2052(a)(5) and (8). Kawasaki is a 
``distributor'' or a ``manufacturer'' of the Teryxs, as such terms are 
defined in section 3(a)(7) and (11) of the CPSA, 15 U.S.C. Sec.  
2052(a)(7) and (11).

Violation of CPSA Section 19(a)(4)

    11. The Teryxs contain a defect which could create a substantial 
product hazard and create an unreasonable risk of serious injury 
because sticks or other debris can break through the Teryxs' floor 
board and protrude into the foot rest area, posing an injury hazard to 
the operator and front passenger.
    12. Between April 2012 and July 2014, Kawasaki received more than 
400 incident reports of Teryx4 750 floorboards cracking or breaking 
during normal operation due to impact with, or penetration by, debris 
from outside the vehicle. At least three of the incident reports 
resulted in injuries to consumers, including one serious injury.
    13. In April 2012, Kawasaki began an investigation into the Teryx4 
750 incidents. In October 2012, Kawasaki approved a design change to 
the Teryx4 750. The design change consisted of a metal strike plate to 
address the hazard and was implemented on Teryx4 750 models beginning 
in early 2013.
    14. In May 2013, Kawasaki stopped manufacturing the Teryx4 750 and 
began manufacturing the Teryx 800 and Teryx4 800.
    15. In December 2013, in anticipation of production for the 2015 
model year, Kawasaki approved an additional design change. This design 
change involved enhanced floorboard guards for implementation on the 
2015 model year Teryx 800 and Teryx4 800.
    16. Kawasaki did not immediately inform the Commission under 15 
U.S.C. Sec.  2064(b) regarding the defect and risk posed by the Teryx4 
750 and did not file a Full Report as required by 16 C.F.R. Sec.  
1115.13(d) until July 9, 2014.
    17. Kawasaki and the Commission jointly announced a recall of 
approximately 11,000 Teryx4 750s on July 30, 2014.
    18. Between July 2013 and August 2015, Kawasaki received more than 
150 incident reports of Teryx4 800 or Teryx 800 floor boards cracking 
or breaking during normal operation due to impact with, or penetration 
by, debris from outside the vehicle. At least three of the incident 
reports resulted in injuries to consumers, including two serious 
injuries.
    19. Kawasaki did not immediately inform the Commission under 15 
U.S.C. Sec.  2064(b) regarding the defect and risk posed by the Teryx4 
800 and Teryx 800 and did not file a Full Report as required by 16 
C.F.R. Sec.  1115.13(d) until August 19, 2015.
    20. Kawasaki and the Commission jointly announced a recall of 
approximately 19,500 Teryx4 800s and Teryx 800s on December 15, 2015.
    21. Despite having information reasonably supporting the conclusion 
that the Teryxs contained a defect and created an unreasonable risk of 
serious injury, Kawasaki did not immediately inform the Commission of 
such defect or risk, as required by sections 15(b)(3) and (4) of the 
CPSA, 15 U.S.C. Sec.  2064(b)(3) and (4), in violation of section 
19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4).
    22. Because the information in Kawasaki's possession constituted 
actual and presumed knowledge, Kawasaki knowingly violated section 
19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4), as the term 
``knowingly'' is

[[Page 25781]]

defined in section 20(d) of the CPSA, 15 U.S.C. Sec.  2069(d).
    23. Pursuant to Section 20 of the CPSA, 15 U.S.C. Sec.  2069, 
Kawasaki is subject to civil penalties for its knowing violation of 
section 19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4).

Violation of CPSA Section 19(a)(13)

    24. Kawasaki's July 9, 2014, Full Report reported a single incident 
and an unspecified number of injuries related to the Subject Products' 
floorboards. The Full Report did not identify more than 400 similar 
incidents involving the Subject Products about which Kawasaki had 
actual or presumed knowledge, and excluded any incidents relating to 
the Teryx4 800 and Teryx 800. This omission constitutes a material 
misrepresentation under section 19(a)(13) of the CPSA, 15 U.S.C. Sec.  
2068(a)(13).
    25. Kawasaki's misrepresentation impeded CPSC staff's investigation 
into the hazard posed by the Subject Products' floorboards and 
Kawasaki's proposed repair, and hampered staff's ability to accurately 
communicate the prevalence of the hazard to the public.
    26. By knowingly making a material misrepresentation to an officer 
or employee of the CPSC in the course of an investigation under the 
CPSA, Kawasaki knowingly violated section 19(a)(13) of the CPSA, 15 
U.S.C. Sec.  2068(a)(13), as the term ``knowingly'' is defined in 
section 20(d) of the CPSA, 15 U.S.C. Sec.  2069(d). Pursuant to section 
20 of the CPSA, 15 U.S.C. Sec.  2069, Kawasaki is subject to civil 
penalties for its knowing violation of section 19(a)(13) of the CPSA, 
15 U.S.C. Sec.  2068(a)(13).

RESPONSE OF KAWASAKI

    27. The signing of this Agreement does not constitute an admission 
in any respect by Kawasaki of the staff charges, set forth above in 
paragraphs 6 through 26, including, but not limited to, that: (a) the 
Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could 
create a substantial product hazard and created an unreasonable risk of 
serious injury; (b) Kawasaki failed to inform the Commission of any 
reportable issues related to the Teryxs in a timely manner, in 
accordance with sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. 
Sec. Sec.  2064(b)(3) and (4); (c) Kawasaki failed to furnish 
information as required by the statute (sections 15(b)(3) and (4), 15 
U.S.C. Sec. Sec.  2064(b)(3) and (4)), in violation of section 19(a)(4) 
of the CPSA, 15 U.S.C. Sec.  2068(a)(4); and (d) there was any 
``knowing'' violation of the CPSA as that term is defined in section 
20(d) of the CPSA, 15 U.S.C. Sec.  2069(d).
    28. The Teryx4 750, Teryx4 800, and Teryx 800 are side-by-side 
recreational off-highway vehicles which are used in a variety of 
challenging off-road environments where breakage of various parts, 
including floor boards, can occur.
    29. Kawasaki conducted a reasonable and diligent investigation of 
reported incidents of floor board breakage, including the smaller 
number of reported instances of stick penetration and the handful of 
reports of injury. Due to the nature of the products and the variety of 
ways and environments in which they are used, incident reports can be 
difficult to evaluate, since use of the Teryx4 750, Teryx4 800, and 
Teryx 800, like all side-by-side recreational off-highway vehicles, 
involves the possibility of parts breakage.
    30. The voluntary recalls of the Teryx4 750, Teryx4 800, and Teryx 
800 and related reporting to the Commission under section 15(b) of the 
CPSA, 15 U.S.C. Sec.  2064(b), were conducted by Kawasaki out of an 
abundance of caution and without having determined or concluded that 
the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which 
could create a substantial product hazard or created an unreasonable 
risk of serious injury. Kawasaki may submit a corrective action plan to 
the Commission without admitting that either reportable information or 
a substantial product hazard exists. See 16 C.F.R. Sec.  
1115.20(a)(1)(xiii). Kawasaki also makes design changes to its products 
to address customer satisfaction.
    31. Kawasaki denies the staff charges that Kawasaki committed a 
material misrepresentation by omission in the July 9, 2014 Full Report 
in violation of section 19(a)(13) of the CPSA, 15 U.S.C. Sec.  
2068(a)(13), and further denies that Kawasaki committed a ``knowing'' 
violation of section 19(a)(13) as that term is defined in section 20(d) 
of the CPSA, 15 U.S.C. Sec.  2069(d).
    32. Pursuant to section 20(a)(1) of the CPSA, 15 U.S.C. Sec.  
2069(a)(1), the amount of the agreed civil penalty which can be 
attributable to the claim of material misrepresentation by omission 
under section 19(a)(13) of the CPSA, 15 U.S.C. Sec.  2068(a)(13), 
cannot exceed $100,000.
    33. Kawasaki believes that it did nothing wrong in this matter and 
that it complied with the CPSA in all respects. Kawasaki disputes the 
staff's allegations that Kawasaki had information that the Teryxs 
contained a defect which could create a substantial product hazard and 
created an unreasonable risk of injury. Kawasaki believes that it 
informed the Commission of any reportable issues regarding the Teryxs 
in a timely manner and furnished information to CPSC as required by the 
CPSA. Kawasaki does not believe that it knowingly violated the CPSA as 
that term is defined in the statute.
    34. Pursuant to paragraphs 43 through 45, Kawasaki will maintain 
its program for current and future compliance with the CPSA.
    35. Kawasaki enters into this Agreement in order to settle this 
matter without the delay and unnecessary expense of litigation.

AGREEMENT OF THE PARTIES

    36. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Subject Products and over Kawasaki.
    37. The parties enter into this Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Kawasaki, or a 
determination by the Commission, that Kawasaki violated the CPSA's 
reporting requirements or made material misrepresentations to an 
officer or employee of the Commission.
    38. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, Kawasaki shall pay a civil penalty in 
the amount of five million, two hundred thousand dollars ($5,200,000) 
within thirty (30) calendar days after receiving service of the 
Commission's final Order accepting the Agreement. All payments to be 
made under the Agreement shall constitute debts owing to the United 
States and shall be made by electronic wire transfer to the United 
States via: http://www.pay.gov, for allocation to, and credit against, 
the payment obligations of Kawasaki under this Agreement. Failure to 
make such payment by the date specified in the Commission's final Order 
shall constitute Default.
    39. All unpaid amounts, if any, due and owing under the Agreement, 
shall constitute a debt due and immediately owing by Kawasaki to the 
United States, and interest shall accrue and be paid by Kawasaki at the 
federal legal rate of interest set forth at 28 U.S.C. Sec.  1961(a) and 
(b) from the date of Default, until all amounts due have been paid in 
full (hereinafter ``Default Payment Amount'' and ``Default Interest 
Balance''). Kawasaki shall consent to a Consent Judgment in the amount 
of the Default Payment Amount and Default Interest Balance, and the 
United States, at its sole option, may collect the entire Default 
Payment Amount and Default Interest Balance, or exercise any other

[[Page 25782]]

rights granted by law or in equity, including, but not limited to, 
referring such matters for private collection, and Kawasaki agrees not 
to contest, and hereby waives and discharges, any defenses to any 
collection action undertaken by the United States, or its agents or 
contractors, pursuant to this paragraph. Kawasaki shall pay the United 
States all reasonable costs of collection and enforcement under this 
paragraph, respectively, including reasonable attorney's fees and 
expenses.
    40. After staff receives this Agreement executed on behalf of 
Kawasaki, staff shall promptly submit the Agreement to the Commission 
for provisional acceptance. Promptly following provisional acceptance 
of the Agreement by the Commission, the Agreement shall be placed on 
the public record and published in the Federal Register, in accordance 
with the procedures set forth in 16 C.F.R. Sec.  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 the 
Agreement is published in the Federal Register, in accordance with 16 
C.F.R. Sec.  1118.20(f).
    41. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject to 
the provisions of 16 C.F.R. Sec.  1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon Kawasaki, and (ii) the date of issuance of the 
final Order, this Agreement shall be in full force and effect, and 
shall be binding upon the parties.
    42. Effective upon the later of: (i) the Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
Kawasaki, and (ii) the date of issuance of the final Order, for good 
and valuable consideration, Kawasaki hereby expressly and irrevocably 
waives and agrees not to assert any past, present, or future rights to 
the following, in connection with the matter described in this 
Agreement: (i) an administrative or judicial hearing; (ii) judicial 
review or other challenge or contest of the Commission's actions; (iii) 
a determination by the Commission of whether Kawasaki failed to comply 
with the CPSA 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.
    43. Kawasaki shall maintain a compliance program designed to ensure 
compliance with the CPSA with respect to any consumer product imported, 
manufactured, distributed or sold by the Firm, and which shall contain 
the following elements: (i) written standards, policies and procedures, 
including those designed to ensure that information that may relate to 
or impact CPSA compliance (including information obtained by quality 
control personnel) is conveyed effectively to personnel responsible for 
CPSA compliance, whether or not an injury is referenced; (ii) a 
mechanism for confidential employee reporting of compliance-related 
questions or concerns to either a compliance officer or to another 
senior manager with authority to act as necessary; (iii) effective 
communication of company compliance-related policies and procedures 
regarding the CPSA to all applicable employees through training 
programs or otherwise; (iv) the Firm's senior management responsibility 
for, and general board oversight of, CPSA compliance; and (v) retention 
of all CPSA compliance-related records for at least five (5) years, and 
availability of such records to staff upon request.
    44. Kawasaki shall maintain and enforce a system of internal 
controls and procedures designed to ensure that, with respect to all 
consumer products imported, manufactured, distributed or sold by 
Kawasaki: (i) information required to be disclosed by Kawasaki to the 
Commission is recorded, processed and reported in accordance with 
applicable law; (ii) all reporting made to the Commission is timely, 
truthful, complete, accurate and in accordance with applicable law; and 
(iii) prompt disclosure is made to Kawasaki's management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
affect adversely, in any material respect, Kawasaki's ability to 
record, process and report to the Commission in accordance with 
applicable law.
    45. Upon reasonable request of staff, Kawasaki shall provide 
written documentation of its internal controls and procedures, 
including, but not limited to, the effective dates of the procedures 
and improvements thereto. Kawasaki shall cooperate fully and truthfully 
with staff and shall make available all non-privileged information and 
materials, and personnel deemed necessary by staff to evaluate 
Kawasaki's compliance with the terms of the Agreement.
    46. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    47. Kawasaki represents that the Agreement: (i) is entered into 
freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of Kawasaki, enforceable against Kawasaki 
in accordance with its terms. Kawasaki will not directly or indirectly 
receive any reimbursement, indemnification, insurance-related payment, 
or other payment in connection with the civil penalty to be paid by 
Kawasaki pursuant to the Agreement and Order. The individuals signing 
the Agreement on behalf of Kawasaki represent and warrant that they are 
duly authorized by Kawasaki to execute the Agreement.
    48. The signatories represent that they are authorized to execute 
this Agreement.
    49. The Agreement is governed by the laws of the United States.
    50. The Agreement and the Order shall apply to, and be binding 
upon, Kawasaki and each of its successors, transferees, and assigns; 
and a violation of the Agreement or Order may subject Kawasaki, and 
each of its successors, transferees, and assigns, to appropriate legal 
action.
    51. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter contained therein.
    52. The 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. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties 
and shall not, therefore, be construed against any party, for that 
reason, in any subsequent dispute.
    53. The Agreement may not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
C.F.R. Sec.  1118.20(h). The Agreement may be executed in counterparts.
    54. If any provision of the Agreement or the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the Commission 
and Kawasaki agree in writing that severing the provision materially 
affects the purpose of the Agreement and the Order.

KAWASAKI HEAVY INDUSTRIES, LTD.

Dated: May 12, 2017


[[Page 25783]]


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

Hideto Yoshitake,

General Manager and Associate Officer.

KAWASAKI MOTORS CORP., U.S.A.

Dated: May 12, 2017

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

Yoshitaka Tamura,

President and Chief Executive Officer.

KAWASAKI MOTORS MANUFACTURING CORP., U.S.A.

Dated: May 12, 2017

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

Masanobu Kurushima,

President.

Dated: May 16, 2017

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

Michael A. Wiegard, Esq.,

Eckert Seamans Cherin & Mellott, LLC Counsel to Kawasaki.

U.S. CONSUMER PRODUCT SAFETY COMMISSION

Mary T. Boyle,

General Counsel.

Mary B. Murphy,
Assistant General Counsel.

Dated: May 22, 2017

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

Philip Z. Brown,

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

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: KAWASAKI HEAVY INDUSTRIES, LTD.; KAWASAKI 
MOTORS CORP., U.S.A.; and KAWASAKI MOTORS MANUFACTURING CORP., 
U.S.A.

CPSC Docket No.: 17-C0004

ORDER

    Upon consideration of the Settlement Agreement entered into between 
Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and 
Kawasaki Motors Manufacturing Corp., U.S.A. (collectively, 
``Kawasaki''), and the U.S. Consumer Product Safety Commission 
(``Commission''), and the Commission having jurisdiction over the 
subject matter and over Kawasaki, and it appearing that the Settlement 
Agreement and the Order are in the public interest, it is:
    ORDERED that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    FURTHER ORDERED that Kawasaki shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of 
five million, two hundred thousand dollars ($5,200,000) within thirty 
(30) days after service of the Commission's final Order accepting the 
Settlement Agreement. The payment shall be made by electronic wire 
transfer to the Commission via: http://www.pay.gov. Upon the failure of 
Kawasaki to make the foregoing payment when due, interest on the unpaid 
amount shall accrue and be paid by Kawasaki at the federal legal rate 
of interest set forth at 28 U.S.C. Sec.  1961(a) and (b). If Kawasaki 
fails to make such payment or to comply in full with any other 
provision of the Settlement Agreement, such conduct will be considered 
a violation of the Settlement Agreement and Order.
    Provisionally accepted and provisional Order issued on the 31st day 
of May, 2017.

    By Order of the Commission:
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Todd A. Stevenson, Secretary,

U.S. Consumer Product Safety Commission.

[FR Doc. 2017-11567 Filed 6-2-17; 8:45 am]
 BILLING CODE 6355-01-P

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