APRIL, 1997 DIRECTED INSPECTION BY CARB, 9,271 VEHICLES IN VIOLATION ON AUGUST 25, 1998, EPA'S OFFICE OF MOBILE SOURCES (NOW OTAQ ) REFERRED A CASE AGAINST JAGUAR CARS FOR POSSIBLE MISBUILD/ DEFEAT DEVICE VIOLATIONS DURING THE 1995, 1996 AND 1997 MODE L YEARS, WHICH HAD BEEN IDENTIFIED BY A CALIFORNIA INVESTIGA TION. AED'S JULY 20, 1999 208 REQUEST FOR INFORMATION TO JAGUAR ESTABLISHED THAT JAGUAR HAD INSTALLED A DENSO COMPUTE R CHIP WHICH RESET TO ZERO WHEN A DISABLE CONDITION WAS MET (AS IN THE HONDA CASE). JAGUAR'S GENERAL DESCRIPTION OF THE MISFIRE MONITOR IN THEIR CERTIFICATION APPLICATIONS DID NOT DISCLOSE THIS FACT, WHICH DEFEATED THE CONTINUOUS MONITORIN G FUNCTION REQUIRED BY CARB'S REGULATIONS. JAGUAR'S INSTALL ATION OF A SYSTEM THAT DOES NOT MONITOR CONTINUOUSLY AMOUNTS TO A MATERIAL DIFFERENCE BETWEEN THE APPLICATION AND THE SY STEM AS IT ACTUALLY PERFORMED. ON AUGUST 17, 1999, THE CALI FORNIA AIR RESOURCES BOARD SETTLED WITH JAGUAR FOR $30,000 F OR 1,637 CALIFORNIA CARS AT A PER VEHICLE AMOUNT OF $18.33 ( THERE WERE ACTUALLY 1, 957 CALIFORNIA CARS; 320 CARS WERE TH US UNCOUNTED IN CARB'S PENALTY CALCULATION AND HAVE BEEN ADD ED TO THE CALCULATION OF FEDERAL CIVIL PENALTY). DOJ AGREED THAT THIS MATTER MAY BE CONCLUDED WITH AN ASA, BECAUSE THE A MOUNT IS UNDER $220,000 AND THERE IS A HIGH DEGREE OF CERTAI NTY THAT THE INJUNCTIVE RELIEF PROVISIONS WILL BE CARRIED OU T (IN FACT, JAGUAR HAS BEGUN CARRYING