Innocent Sellers Fairness Act - Exempts a lawful seller from liability for personal injury, monetary loss, or damage to property arising out of an accident or transaction involving a seller's products, unless the claimant proves one or more of the following activities by the seller:
Limits the seller's liability to the personal injury, monetary loss, or damage to property directly caused by such activity where a claimant proves one or more of such activities was negligent.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2746 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2746
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2013
Mr. Farenthold 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Innocent Sellers Fairness Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) an innocent seller should not 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 they had no
control or input in the design, production, or any other aspect
of an allegedly defective product, and may therefore face
increased costs due to the possibility or result of
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,
decrease litigiousness, and lower prices to consumers; 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.
SEC. 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 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.
(5) The seller had actual knowledge of the defect in the
product as a result of a recall from the manufacturer or
governmental entity authorized to make such recall or actual
inspection at the time the seller sold the product to the
claimant.
(6) The seller had actual knowledge of the defect in the
product at the time the seller supplied the product.
(7) The seller intentionally altered or modified a product
warranty, warning or instruction from the manufacturer in a way
not authorized by the manufacturer.
(8) The seller knowingly made a false representation about
an aspect of the product not authorized by the manufacturer.
(b) Liability of Seller in Cases of Negligence.--If the claimant
proves one or more of the activities described in subsection (a) and
such activity was negligent, the seller's liability is limited to the
personal injury, monetary loss, or damage to property, directly caused
by such 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 applies to any civil action involving
a product that was sold to the claimant on or after the date of the
enactment of this Act.
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Introduced in House
Introduced in House
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.
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.
Referred to the Subcommittee on Commerce, Manufacturing, and Trade.
Referred to the Subcommittee on the Constitution and Civil Justice.
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