109 HR 5500 IH: To prevent undue disruption of interstate commerce by U.S. House of Representatives 2006-05-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5500 IN THE HOUSE OF REPRESENTATIVES May 25, 2006 Mr. Keller (for himself, Mr. Boren, Mrs. Musgrave, Mr. Hensarling, Mr. Herger, Mr. Kuhl of New York, Mrs. Johnson of Connecticut, Mr. McCaul of Texas, Mr. Ney, and Mr. Davis of Tennessee) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prevent undue disruption of interstate commerce by limiting civil actions brought against persons whose only role with regard to a product in the stream of commerce is as a lawful seller of the product.

1.

Short title

This Act may be cited as the Innocent Sellers Fairness Act.

2.

Findings

Congress finds that— (1)it is unfair for a seller to be held responsible under the doctrine of product liability for damages that the seller did not cause; (2)as a result of product liability, sellers are often brought into litigation despite the fact that their conduct had nothing to do with the accident or transaction giving rise to the lawsuit, and may therefore face increased and unjust costs due to the possibility or result of unfair and disproportionate damage awards; (3)due to high liability costs and unwarranted litigation costs, sellers face higher costs in purchasing insurance through interstate insurance markets to cover their activities; (4)liability reform for sellers will promote the free flow of goods and services, lessen burdens on interstate commerce, and decrease litigiousness; and (5)legislation to address these concerns is an appropriate exercise of the powers of Congress under clauses 3, 9, and 18 of section 8 of article I of the Constitution of the United States, and the 14th amendment to the Constitution of the United States.

3.

Limitation on liability of product sellers

(a)

In general

No seller of any product shall be liable for personal injury, monetary loss, or damage to property arising out of an accident or transaction involving such product, unless the claimant proves one or more of the following non-sale activities by the seller: (1)The seller was the manufacturer of the product. (2)The seller participated in the design of the product. (3)The seller participated in the installation of the product. (4)The seller altered, modified, or expressly warranted the product in a manner not authorized by the manufacturer. (b)

Liability for non-sale activities

If the claimant proves one or more of the non-sale activities described in subsection (a) and such non-sale activity was negligent, the seller’s liability shall be limited to the personal injury, monetary loss, or damage to property directly caused by such non-sale activity. (c)

Definitions

In this Act: (1)

Manufacturer

The term manufacturer means a person who is lawfully engaged in the business of manufacturing a product in interstate or foreign commerce during such person’s regular course of trade or business. (2)

Person

The term person means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity. (3)

Seller

The term seller means a person who is lawfully engaged in the business of marketing, distributing, advertising, or selling a product in interstate or foreign commerce during such person’s regular course of trade or business. (d)

Effective date

This Act shall apply to any civil action involving a product that was sold to the claimant on or after the date of the enactment of this Act.