46 U.S.C. § 4311 — Penalties and injunctions

(a) A person who willfully operates a recreational vessel^* in violation of this chapter or a regulation made under this chapter may be fined up to $5,000, imprisoned for up to one year, or both.

(b)(1) A person who violates section 4307(a) is liable to the United States Government for a civil penalty of up to $5,000. For a related series of violations, the maximum civil penalty may be up to $250,000.

(b)(2) If the Secretary decides under section 4310(f) that a recreational vessel or associated equipment has a safety-related defect or does not comply with an applicable regulation, and directs the manufacturer to give the notifications required by this chapter, any person—including a corporation’s director, officer, or executive employee—who knowingly and willfully fails to comply with that order may be fined up to $10,000, imprisoned for up to one year, or both.

(b)(3) If a corporation violates section 4307(a), or fails to comply with the Secretary’s decision under section 4310(f), each director, officer, or executive employee who knowingly and willfully ordered or knowingly and willfully authorized the violation is individually liable to the Government for the penalty under paragraph (1) or (2), in addition to the corporation’s liability. But that person is not individually liable under this subsection if the person establishes, by a preponderance of the evidence, both of the following:

(A) The person ordered or authorized the action based on a decision made using reasonable and prudent judgment that the defect or failure to meet standards and regulations would not cause or create a substantial risk of personal injury to the public.

(B) When ordering or authorizing the action, the person advised the Secretary in writing that the person was acting under this subparagraph and subparagraph (A).

(c) A person who violates section 4312(b) is liable to the United States Government for a civil penalty of no more than: (1) $100 for a first offense; (2) $250 for a second offense; or (3) $500 for any later offense.

(d) A person who violates any other provision of this chapter or any other regulation made under this chapter is liable to the Government for a civil penalty of up to $1,000. If the violation involves operating a vessel, the vessel is also liable for the penalty as property itself.

(e) When a civil penalty of no more than $200 has been assessed under this chapter, the Secretary may refer collection directly to the United States magistrate judge in the jurisdiction where the liable person may be found. The collection proceedings will be under the district court’s supervision and under an order in which the court delegates this authority under section 636(b) of title 28.

(f) United States district courts have jurisdiction to stop a violation of this chapter. They also have jurisdiction to stop the sale, offer for sale, introduction or delivery for introduction into interstate commerce, or importation into the United States of a recreational vessel or associated equipment that the court decides does not meet the Government’s safety standards. The Attorney General must bring a civil action under this subsection by filing a petition for the Government. When practicable, the Secretary must notify the person against whom an injunction action is being considered and give that person an opportunity to present views. Except for a knowing and willful violation, the Secretary must also give that person a reasonable opportunity to comply. Failure to give notice or this opportunity does not prevent the district court from granting appropriate relief.

(g) A person is not subject to a penalty under this chapter if the person: (1) establishes either that, while exercising reasonable care, the person had no reason to know that the recreational vessel or associated equipment did not meet the Government’s applicable safety standards, or that the Secretary or manufacturer did not advise the person that the vessel, equipment, or component had a defect creating a substantial risk of personal injury to the public; or (2) has a certificate from the manufacturer stating that the recreational vessel or associated equipment meets all applicable Government recreational-vessel safety standards, unless the person knew or reasonably should have known that it did not meet those standards.

(h) Following this chapter or standards, regulations, or orders made under this chapter does not release a person from liability under common law or State^* law.