Federal Product Liability Reform Act of 1986

Federal Product Liability Reofrm Act of 1986 - Title I: - Sets forth findings and purposes of this Act.

Title II - Limits the amount of damages which may be recovered against a product seller for noneconomic losses to $250,000. Makes a product seller who has acted with flagrant indifference to consumer safety liable for punitive damages. States that punitive damages may not be awarded in the absence of a compensatory award. Limits the amount of punitive damages which may be recovered.

Provides that all product liability actions shall be governed by the principles of comparative responsibility. Specifies the manner in which damages are to be apportioned.

Requires the reduction of any damages award by any amount received by the claimant from collateral sources (including workers' compensation benefits).

Establishes a two-year statute of limitations and a ten-year statute of repose.

Preempts inconsistent State and Federal laws.