Product Liability Act

(Reported to Senate from the Committee on Commerce, Science, and Transportation with amendment, S. Rept.97-670)

Product Liability Act - Preempts State product liability laws. States that this Act governs any civil action for harm caused by a product which would have been based on: (1) strict or absolute liability in tort; (2) negligence or gross negligence; (3) breach of express or implied warranty and; (4) failure to discharge a duty to warn or instruct.

Makes a manufacturer liable if the claimant establishes by a preponderance of the evidence that a product was unreasonably dangerous: (1) in construction or design; (2) because the manufacturer failed to provide adequate warnings of danger; or (3) because the product did not conform to an express warranty. Specifies the requisite findings which must be made for such proof of unreasonable danger to be determined.

Subjects a product seller to liability if the claimant proves by a preponderance of the evidence that the claimant's harm was proximately caused by such seller's failure to use reasonable care with respect to the product. Enumerates circumstances under which such a seller is also subject to the liability of a manufacturer.

Provides that all claims under this Act shall be governed by the principles of comparative responsibility. Sets forth rules with respect to conduct affecting comparative responsibility, including misuse, alteration or modification of a product. Specifies the manner in which damages are to be apportioned.

Requires that damages in any product liability claim be reduced by an amount paid as workers' compensation benefits.

Prescribes a statute of limitation for recovery.

Allows punitive damages to be awarded if the claimant proves by clear and convincing evidence that the harm suffered was the result of the product manufacturer's or seller's reckless disregard for the safety of product users, consumers, or others who might be harmed by the product.

Provides that evidence of corrective measures taken by a product seller after a harm has occurred would not be admissible in court to prove liability.