UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION ______________________________ In the Matter of ) ) Briggs & Stratton Corporation ) ) a corporation ) ______________________________ )

CPSC Docket No. 02-

SETTLEMENT AGREEMENT AND ORDER 1. This Settlement Agreement, made by and between the staff (the staff) of
the U.S. Consumer Product Safety Commission (the Commission) and Briggs & Stratton Corporation ("Briggs & Stratton or Respondent), a corporation, in accordance with 16 C.F.R. 1118.20 of the Commissions Procedures for Investigations, Inspections, and Inquiries under the Consumer Product Safety Act (CPSA), is a settlement of the staff allegations set forth below. THE PARTIES 2. The Commission is an independent federal regulatory agency responsible
for the enforcement of the Consumer Product Safety Act, 15 U.S.C. 2051-2084. 3. Briggs & Stratton is a corporation organized and existing under the laws of
the State of Wisconsin with its principal corporate offices located in Wauwatosa, Wisconsin.
STAFF ALLEGATIONS 4. Between 1992 and 1995, Briggs & Stratton manufactured and sold nationwide
approximately 133,000 series 1352 engines for use on fun karts. Between December 1994 and May 1995, Briggs & Stratton manufactured and sold approximately 29,000 series 1362 engines with vented gas caps for use on fun karts. 5. Both the series 1352 engines and the series 1362 engines with vented gas
caps (engines) are consumer products and Respondent is a manufacturer of consumer products, which were distributed in commerce as those terms are defined in sections 3(a)(1),(4),(11) and (12) of the CPSA, 15 U.S.C. 2052(a)(1),(4),(11), and (12). 6. The engines are defective because when tipped over or inverted they spill
gasoline that can result in fires. If a fun kart equipped with the subject engine(s) should overturn, fun kart riders could suffer serious burn injuries or death. 7. In early 1994, Briggs & Stratton became aware of an incident where a fun kart equipped with a series 1352 engine tipped over, spilled gasoline and caught fire. 8. Between January 1994 and sometime in 1999, Briggs & Stratton received
at least eight reports of incidents, where fun karts with 1352 engines tipped over, spilled gasoline and caught fire, causing severe burn injuries to four fun kart riders ages 10-16. 9. In response to the fuel spillage problem manifested by the series 1352
engines, Briggs & Stratton attempted a number of design changes beginning in 1994. This included the production of the subject 1362 engines with vented gas caps from December 1994 through May 1995. These design changes failed to eliminate the gasoline spillage problem. 10. Between January 1995 and the present, Briggs & Stratton received at least
nine reports of incidents, where fun karts equipped with 1362 engines with vented gas caps
caught fire. No fire related injuries have been reported involving the 1362 engines. 11. In May 1995, Briggs & Stratton in an attempt to remedy the gasoline spillage
problem redesigned the 1362 series engine to include a check valve in the gas tank. 12. Despite being aware of the information set forth in paragraphs 6 through 11,
Briggs & Stratton did not report to the Commission about the subject engines until March 17, 1999, when it responded to an earlier request from Commission staff for information about the engines. 13. Briggs & Stratton obtained information which reasonably supported the
conclusion that the engines described in paragraph 6 contained a defect which could create a substantial product hazard and created an unreasonable risk of serious injury or death, but failed to report such information to the Commission as required by sections 15(b)(2),(3) of the CPSA, 15 US.C. 2064(b)(2), (3). 14. Briggs & Stratton also failed to report to the Commission information about
lawsuit settlements concerning the subject engines as required by section 37 of the CPSA, 15 U.S.C. 2084. 15. By failing to provide information as required by section 15(b) of the CPSA,
15 U.S.C. 2064(b), and section 37 of the CPSA, 15 U.S.C. 2084, Briggs & Stratton violated sections 19(a)(4), (11) of the CPSA, 15 U.S.C. 2068(a)(4), (11). 16. Respondent committed these failures to report to the Commission
knowingly as the term knowingly is defined in section 20(d) of the CPSA, 15 U.S.C. 2069(d), and Respondent is subject to civil penalties under section 20 of the CPSA.

RESPONSE OF BRIGGS & STRATTON 17. Briggs & Stratton denies all of the allegations of the staff set forth in
paragraphs 4-16 above. 18. Briggs & Stratton denies that the engines contain any defect which could
create a substantial product hazard, or create an unreasonable risk of serious injury or death pursuant to section 15(b) of the CPSA, 15 U.S.C. 2064(b). 19. Briggs & Stratton denies that a particular model of an engine manufactured
by Briggs & Stratton was the subject of at least three civil actions alleging the involvement of grievous bodily or death and resulting in a final settlement involving Briggs & Stratton or a court judgment in favor of the plaintiff within a 24-month period pursuant to section 37 of the CPSA, 15 U.S.C. 2084. 20. Respondent denies that it violated the CPSA Reporting Requirements of
section 15(b) of the CPSA, 15 U.S.C. 2064(b) and section 37 of the CPSA, 15 U.S.C. 2084. Briggs & Stratton states that no other violation of law occurred warranting imposition of a civil penalty. In settling this matter, Briggs & Stratton does not admit any fault, liability or statutory or regulatory violation. 21. Briggs and Stratton further states that it designed and implemented product
improvements to address the risk of gasoline spillage; it considered the reporting requirements of the CPSA and made, based on its understanding of the law, good faith judgments about reporting; and it did not knowingly violate any reporting requirements. 22. With respect to the allegations of incidents of severe burn injuries referenced
in paragraph 8 above, Briggs & Stratton denies that a defect in the engines was the cause
of the injuries and states that each incident involved either an alternate cause of fire or injury, misuse of the product or changes made to the product after Respondents manufacturing of the product.
AGREEMENT OF THE PARTIES 23. The Commission has jurisdiction over this matter and over Briggs &
Stratton under the CPSA, 15 U.S.C. 2051-2084. 24. This Agreement is entered into for settlement purposes only and does not
constitute an admission by Respondent or a determination by the Commission that Respondent knowingly violated the CPSA Reporting Requirements. 25. Briggs & Stratton agrees to pay to the order of the U.S. Treasury a civil
penalty in the amount of four hundred thousand dollars ($400,000.00), in settlement of this matter, payable within twenty (20) days after service of the Final Order of the Commission accepting this Settlement Agreement. 26. Briggs & Stratton knowingly, voluntarily and completely waives any rights it
may have in the above captioned case (i) to the issuance of a Complaint in this matter; (ii) to an administrative or judicial hearing with respect to the staffs allegations cited herein; (iii) to judicial review or other challenge or contest of the validity of the Settlement Agreement or the Commissions Order; (iv) to a determination by the Commission as to whether a violation of Sections 15(b) or 37 of the CPSA, has occurred, (v) to a statement of findings of fact and conclusions of law with regard to the staffs allegations; and (vi) to any claims under the Equal Access to Justice Act.

Upon provisional acceptance of this Settlement Agreement and Order 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 procedure set forth in 16 C.F.R. 1118.20(e). If the Commission does not receive any written request not to accept the Settlement Agreement and Order within 15 days, the Agreement and Order shall be deemed finally accepted on the 16th day after the date it is published in the Federal Register, in accordance with 16 C.F.R. 1118.20(f). 28. This Settlement Agreement and Order becomes effective after its final
acceptance by the Commission and service upon Respondent. 29. Upon final acceptance of this Settlement Agreement by the Commission,
the Commission may publicize the terms of the Settlement Agreement and Order. 30. Respondent agrees to the entry of the attached Order, which is incorporated
herein by reference, and agrees to be bound by its terms. 31. This Settlement Agreement and Order is binding upon Briggs & Stratton, its
parent and each of their assigns and successors. 32. This Settlement Agreement and Order fully resolves the matters set forth in
paragraphs 4 through 16 above. 33. 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 provision shall be fully severable. The rest of the Settlement Agreement and Order shall remain in full effect, unless the Commission and Briggs & Stratton determine that severing the provision materially impacts the purpose of the Settlement Agreement and Order.
This Settlement Agreement and Order shall not be waived, changed,
amended, modified, or otherwise altered, except in writing executed by the party against whom such amendment, modification, alteration, or waiver is sought to be enforced, and approved by the Commission. 35. 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 to contradict its terms.
BRIGGS & STRATTON CORPORATION Dated: ___________ By: ______________________________________ Thomas R. Savage, Vice President
THE CONSUMER PRODUCT SAFETY COMMISSION Alan H. Schoem, Director Office of Compliance Eric L. Stone, Director Legal Division Office of Compliance Dated: ___________ By: _______________________________________ Ronald G. Yelenik, Trial Attorney Legal Division Office of Compliance

For SAE Baja Only

Initial engine set-up instructions for Briggs & Stratton engine model 205432-0036-E1 to be used for SAE Baja.
The above SAE kit (part number 695221) is supplied with each SAE engine. These parts are required to be mounted on the engine to assist the throttle to return to an idle, additionally the kit aids in the installation of a cable operated throttle control. The following instructions will assist you in preparing your engine for the SAE Baja competition.

SAE Baja

11/17/2006
Remove trim panel. First turn fuel valve to the off position. Then remove 3, 5/16 hex head screws, two are located on the front of the engine and one is located on the side of the engine.
Remove tankmounting screws (4)
After the trim panel is removed, remove the fuel tank by removing 4, 3/8 hex headed shoulder bolts from the base of the fuel tank. Two screws are located on the front and two screws are located on the back of the fuel tank base.
When the fuel tank is removed the following steps need to be accomplished. 1. Install throttle return spring from SAE kit. 2. Loosen throttle arm for friction free movement. 3. Reposition governor spring to hole #6. 4. Remove ground wire from stop switch so engine will not shut off at idle.
View showing engine controls with fuel tank removed.
Loosen throttle arm friction nut.
Move governor spring to hole #6
Install throttle return spring from SAE kit
Remove ground wire from stop switch.
Install throttle return spring from the SAE kit. Next loosen throttle control arm nut until the throttle control arm moves freely. This will allow the throttle control arm to freely move back to the idle position by the spring tension. Remove ground wire from the stop switch so engine will not shut off at idle. Re-route this ground wire to your safety stop switch on the vehicle. (Refer to SAE rules) Reposition governor spring to hole #6. This allows for better governor response.
Close up of the governor spring relocated to the #6 hole, on the governor control bracket. All engines are required to have the governor spring located in #6 hole
Reinstall fuel tank and trim panel back on to the engine.
For SAE Baja Only After trim panel has been re-installed the speed control cable clamp from the SAE kit can be installed on to the speed control level with the E ring retainer holding the clamp from underneath.
Replacement Parts listing for the SAE kit 695221. Part Number 691024 Description Throttle Return Spring Cable Clamp Block E-Ring Retainer Screw for Cable Block Cable Casing Clamp Qty. 1
Always consult engine operating & maintenance instructions manual and engine repair manual for specific values and procedures. To locate Briggs & Stratton service dealers or download engine parts or operating & maintenance instructions manuals please contact: 1-800-233-3723 or www.briggsandstratton.com