Question 3 (20 marks) Harley-Davidson to Pay $12 Million Fine Over Motorcycle Emissions by REUTERS Harley-Davidson agreed to pay a $12 million civil line and stop selling illegal after-market devices that cause its motorcycles to emit too much pollution, the US. Justice Department said on Thursday. The settlement resolves government allegations that Hailey sold roughly 340,000 "super tuners" enabling motorcycles since 2008 to pollute the air at levels greater than what the Milwaukee-based company certified to the US. Environmental Protection Agency. Harley did not admit liability, and said in a statement it disagrees with the government's position arguing that the devices were designed and sold to be used in "competition only." The company said the settlement represents "a good faith compromise with the EPA on areas of law we interpret differently, particularly EPA's assertion that it is illegal for anyone to modify a certified vehicle even if it will be used solely for off-road/closed-course competition. An EPA spokesman said that the vast majority of these tuners were used on public roads. According to the government, the sale of such defeat devices" violates the federal Clean Air Act Harley was also accused of selling more than 12.600 motorcycles that were not covered by an EPA certification governing clean air compliance. The settlement calls for Harley to stop selling the super tuners by August 23, and buy back and destroy all such tuners in stock at its dealerships. EPA said the modified settings increase power and performance, but also increase the motorcycles' emissions of hydrocarbons and nitrogen oxides. Harley must also deny warranty claims if owners continue to use the devices. An EPA spokesman said the company's dealers are not part of this action, but "if they are tampering or selling defeat devices on their own, then they could be investigated independently in the future." Harley will also spend $3 million on an unrelated project to reduce air pollution, the Justice Department said. Given Harley-Davidson's prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal after-market defeat devices that cause harmful pollution on our roads and in our communities." John Cruden, head of the Justice Department's environmental and natural resources division, said in a statement. Page 18 of 21 The announcement comes amid greater scrutiny on emissions and defeat devices" by U.S. regulators after Volkswagen AG admitted to using illegal software to evade U.S. emissions standards in nearly 600,000 U.S. vehicles. "This settlement immediately stops the sale of illegal after-market defeat devices used on public roads that threaten the air we breathe." said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. Harley must obtain a certification from the California Air Resources Board for any tuners it sells in the United States in the future. For any super tuners that Harley-Davidson sells outside the United States in the future, it must label them as not for use in the United States. In a separate statement, the company said it has sold the product for more than 20 years under an accepted regulatory approach that permitted the sale of competition-only parts and said it believed it was legal to use in race conditions in the United States. Harley shares closed down 94 cents at $53.54, or 1.7 percent. They had earlier fallen as much as 8 percent after news of the allegations had surfaced in a U.S. lawsuit filed in Washington, but before the settlement was announced. Source: Reuters (http://www.nbcnews.com/business/business-news/harley-davidson-pay12-million-fine-over-motorcycle-emissions-n634216) Required: 1. What exactly is Harley Davidson being accused of? (1) 2. Define the term pollution. (2) 3. Hydrocarbons and nitrogen oxides are considered as greenhouse gases. Define the term greenhouse gases. (2) 4. What type of justice refers to the act of punishing the wrongdoer, similar to the way Harley Davidson is punished in the above-mentioned article? (1) 5. Harley Davidson is being fined for their contribution towards air pollution. Name and briefly explain the main air pollutants other than those mentioned in the article. (2) 6. Do you consider Harley Davidsons punishment as fair? Give reasons for your answer. (4) 7. Except for the penalty of USD 12 million, what other costs (as evident from the article) was / is to be borne by Harley Davidson because of this unlawful act? (2) 8. Name 2 pollution/environmental regulators in the United States evident from the article. (2) Page 19 of 21 9. William T. Blackstone introduced the concept of environmental rights and argued that all human beings should have a legal right to a decent environment. Name the federal law, evident from the article that promotes this legal right for US citizens. (1) 10. From the article, can you deduce whether the US federal laws place an. absolute ban on air pollution, or only the regulation thereof? Explain your answer. (1) 11. Is it realistic to expect governments to place absolute bans on pollution? Briefly explain why.