[Code of Federal Regulations]
[Title 16, Volume 2]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR1025.26]

[Page 77]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
             CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION
 
PART 1025_RULES OF PRACTICE FOR ADJUDICATIVE PROCEEDINGS--Table of 
Contents
 
Subpart C_Prehearing Procedures, Motions, Interlocutory Appeals, Summary 
                         Judgments, Settlements
 
Sec.  1025.26  Settlements.

    (a) Availability. Any party shall have the opportunity to submit an 
offer of settlement to the Presiding Officer.
    (b) Form. Offers of settlement shall be filed in camera and the form 
of a consent agreement and order, shall be signed by the respondent or 
respondent's representative, and may be signed by any other party. Each 
offer of settlement shall be accompanied by a motion to transmit the 
proposed agreement and order to the Commission. The motion shall outline 
the substantive provisions of the agreement and state reasons why it 
should be accepted by the Commission.
    (c) Contents. The proposed consent agreement and order which 
constitute the offer of settlement shall contain the following:
    (1) An admission of all jurisdictional facts;
    (2) An express waiver of further procedural steps and of all rights 
to seek judicial review or otherwise to contest the validity of the 
Commission order;
    (3) Provisions that the allegations of the complaint are resolved by 
the consent agreement and order;
    (4) A description of the alleged hazard, noncompliance, or 
violation;
    (5) If appropriate, a listing of the acts or practices from which 
the respondent shall refrain; and
    (6) If appropriate, a detailed statement of the corrective action(s) 
which the respondent shall undertake. In proceedings arising under 
Section 15 of the Consumer Product Safety Act, 15 U.S.C. 2064, this 
statement shall contain all the elements of a ``Corrective Action 
Plan,'' as outlined in the Commission's Interpretation, Policy, and 
Procedure for Substantial Product Hazards, 16 CFR part 1115.
    (d) Transmittal. The Presiding Officer may transmit to the 
Commission for decision all offers of settlement and accompanying 
memoranda that meet the requirements enumerated in paragraph (c) of this 
section. The Presiding Officer shall consider whether an offer of 
settlement is clearly frivolous, duplicative of offers previously made 
and rejected by the Commission or contrary to establish Commission 
policy. The Presiding Officer may, but need not, recommend acceptance of 
offers. Any party may object to the transmittal to the Commission of a 
proposed consent agreement by filing a response opposing the motion.
    (e) Stay of proceedings. When an offer of settlement has been agreed 
to by all parties and has been transmitted to the Commission, the 
proceedings shall be stayed until the Commission has ruled on the offer. 
When an offer of settlement has been made and transmitted to the 
Commission but has not been agreed to by all parties, the proceedings 
shall not be stayed pending Commission decision on the offer, unless 
otherwise ordered by the Presiding Officer or the Commission.
    (f) Commission ruling. The Commission shall rule upon all 
transmitted offers of settlement. If the Commission accepts the offer, 
the Commission shall issue an appropriate order, which shall become 
effective upon issuance.
    (g) Commission rejection. If the Commission rejects an offer of 
settlement, the Secretary, in writing, shall give notice of the 
Commission's decision to the parties and the Presiding Officer. If the 
proceedings have been stayed, the Presiding Officer shall promptly issue 
an order notifying the parties of the resumption of the proceedings, 
including any modifications to the schedule resulting from the stay of 
the proceedings.
    (h) Effect of rejected offer. Neither rejected offers of settlement, 
nor the fact of the proposal of offers of settlement are admissible in 
evidence.