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More Information

Exxon Buys a Scandal - FPE - Business Week July 21 1980 p.66Exxon Buys A Federal Pacific Electric Stab-Lok® Panel Scandal Along With A Company
Business Week, July 21, 1980, p.66
     

  • Exxon Buys a Scandal - news articles about Federal Pacific Electric Company
    • History of the FPE Stab-Lok® Electrical Panel hazard
  • Questions & Answers about the purchase of FPE Reliant Electric by Exxon & the discovery of FPE Fraud
  • References

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  • ELECTRICAL INSPECTION, DIAGNOSIS, REPAIR - home
  • DIRECTORY OF ELECTRICIANS
  • ELECTRIC PANEL INSPECTION
  • FEDERAL PACIFIC FPE HAZARDS - home
  • FEDERAL PACIFIC FPE HAZARD SUMMARY
  • FP FEDERAL PIONEER in CANADA
  • FPE COMMERCIAL PANELS
  • FPE FAILURE REPORTS
  • FPE HAZARD ARTICLES, STUDIES
  • FPE HISTORY
  • FPE & FP IDENTIFICATION, HOW TO
    • FPE Stab-Lok® PANEL COVERS
    • FEDERAL NOARK PANELS
    • FEDERAL ELECTRIC PANELS
    • FEDERAL PIONEER PANELS
    • FPE PANEL DOOR LABELS
    • FPE TOGGLE SWITCH
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    • FPE PANEL BUS DESIGNS
    • FPE PANEL AGE MATTERS?
    • OTHER FPE DEFECTS
  • FPE INCIDENTS, HOW TO REPORT
  • FPE INVESTIGATION CPSC Revised 2011
  • FPE PANEL ADVICE for HOME BUYERS
  • FPE PANEL INSPECTION REPORTS
  • FPE REPLACEMENT BREAKERS
  • FPE REPLACEMENT PANEL COSTS
  • FPE REPLACEMENT PANELS
  • FPE Stab-Lok® : FIRES WAITING TO HAPPEN
  • FPE Stab-Lok® Hazard Summary Page for Reproduction
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InspectAPedia tolerates no conflicts of interest. We have no relationship with advertisers, products, or services discussed at this website.

Replacement FPE Stab-Lok® circuit breakers are unlikely to reduce the failure risk of this equipment. We recommend that residential FPE Stab-Lok® electrical panels be replaced entirely or the entire panel bus assembly be replaced, regardless of FPE model number or FPE year of manufacture. We do not sell circuit breakers nor any other products.

This document provides a piece of the historical background of the Federal Pacific Stab-Lok® Electric Panel hazard. The Exxon Corporation came to own Federal Pacific, recognized the liability and issues involved, and divested itself of ownership of Federal Pacific.

More in-depth, un-biased, expert information on these topics and on building defect inspection, diagnosis, & repair can be found at "More Information below.

Green links show where you are. © Copyright 2013 InspectAPedia.com, All Rights Reserved. Author Daniel Friedman.

Exxon Buys A Federal Pacific Electric Stab-Lok® Panel Scandal Along With A Company

For faster loading, this article, obtained from a public library, has been broken into segments. Use the links below to read the article in order; use the "back" button on your browser to return to this page.

Exxon FPE Scandal - entire article [PDF file]

At each link to the four parts of this news article we print excerpts from key contents of the report:

  • Exxon FPE Scandal, part 1 Exxon purchased Reliance Electric for $1.2 billion then discovers a charge that as many as 10% of homes built in recent decades have defective electrical equipment produced by Reliance Electric's (purchased) subsidiary, the Federal Pacific Electric Company. Lawsuit filed 26 June 1980 charges the Federal Pacific Electric Company of having employed "materially deceptive and improper manufacturing, testing, and certification practices" in production of one of the nation's most widely-used circuit breakers [the FPE Stab-Lok® circuit breaker]

  • Exxon FPE Scandal, part 2 Exxon asked the court to rescind the purchase of Reliance or repay the $345. million purchase price plus damages; A week later Reliance notified the US CPSC that its own in-house testing of FPE Stab-Lok® circuit breakers showed failure [to trip, especially on the 2-pole units] at "relatively low overcurrent conditions" and the company stopped shipment and sales of the product. The principal defendant in the case is UV Industries [a company liquidator who had purchased Federal Pacific Electric and then re-sold it to Reliance, then liquidated itself a year before this suit over the objections of its major stockholder, Sharon Steel Corp]. UV's chairman Martin Horowitz denied knowing anything about the Federal Pacific Electric Stab-Lok® problem.

  • Exxon FPE Scandal, part 3 The CPSC had not yet been told the details of the deceptive practices. A CPSC staff member who once worked at UL (Underwriters Laboratories) suggests that the practices may have involved rigging equipment at Federal Pacific's own test facilities in a manner that would deceive the UL on-site inspectors. [Details of the relationship between UL and FPE were proprietary.] Reliance's statements indicated that Federal Pacific Electric's products were de-listed [for several years] after failing various tests.

  • Exxon FPE Scandal, part 4 The removal of UL's listing for FPE Stab-Lok® circuit breakers occurred after UL changed its test procedures following CPSC concerns that the breakers might pose fire hazards. UL's de-listing of nearly 400 circuit breaker labels started the legal process. By May 1980 it became obvious that the real problem was "deception" that occurred over a long period of years. Reliance suspended without pay Federal Pacific Electric President Harry E. Knudson, Jr. (Watchung, N.J.) and four other key Federal Pacific Electric executives.

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  • Our recommended books about building & mechanical systems design, inspection, problem diagnosis, and repair, and about indoor environment and IAQ testing, diagnosis, and cleanup are at the InspectAPedia Bookstore. Also see our Book Reviews - InspectAPedia.
  • Home Reference Book - Carson DunlopThe Home Reference Book - the Encyclopedia of Homes, Carson Dunlop & Associates, Toronto, Ontario, 25th Ed., 2012, is a bound volume of more than 450 illustrated pages that assist home inspectors and home owners in the inspection and detection of problems on buildings. The text is intended as a reference guide to help building owners operate and maintain their home effectively. Field inspection worksheets are included at the back of the volume. Special Offer: For a 10% discount on any number of copies of the Home Reference Book purchased as a single order. Enter INSPECTAHRB in the order payment page "Promo/Redemption" space. InspectAPedia.com editor Daniel Friedman is a contributing author.

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  • The Federal Pacific Stab-Lok® Electric Panel Hazard Website Safety Information for Consumers. 2009
  • Home Inspection Reporting Language and discussion for FPE panels
  • Schneider Canada Federal Pioneer circuit breaker recall
  • Federal Pacific Electric Panels: Fires Waiting to Happen, Debate Waiting to Be Ended
  • How to Identify Federal Pacific Electric Panels Stab Lok Breakers & History of the Federal Pacific Electric Stab Lok Hazard
  • 1983 CPSC Investigation of FPE Circuit Breakers Safety Information for Consumers
  • 1982 Reliance Electric Co. SEC Quarterly Report: Note C. reports litigation between Reliance and UV Liquidating Trust and contends that "... improper and deceptive practices were employed for many years to secure UL listings for Federal Pacific's circuit protective products..."
  • 1980 Reliance Electric Co. Press Release: improper practices used to obtain UL Listing for most of FPE's circuit breakers and notes testing which indicates "possible defects." 1980, Reliance Electric Co.
  • 1980 FPE - Exxon Buys A Scandal Along With A Company improper practices used to obtain UL Listing for most of FPE's circuit breakers and notes testing which indicates "possible defects." 1980, Reliance Electric Co.
  • ...

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