I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Innocent Sellers Fair5 ness Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) an innocent seller should not be held re2 sponsible under the doctrine of product liability for 

3 damages that the seller did not cause; 

4 (2) as a result of product liability, sellers are 

5 often brought into litigation despite the fact that 

6 they had no control or input in the design, produc7 tion, or any other aspect of an allegedly defective 

8 product, and may therefore face increased costs due 

9 to the possibility or result of disproportionate dam10 age awards; 

11 (3) due to high liability costs and unwarranted 

12 litigation costs, sellers face higher costs in pur13 chasing insurance through interstate insurance mar14 kets to cover their activities; 

15 (4) liability reform for sellers will promote the 

16 free flow of goods and services, lessen burdens on 

17 interstate commerce, decrease litigiousness, and 

18 lower prices to consumers; and 

19 (5) legislation to address these concerns is an 

20 appropriate exercise of the powers of Congress under 

21 clauses 3, 9, and 18 of section 8 of article I of the 

22 Constitution of the United States, and the 14th 

23 Amendment to the Constitution of the United 

24 States. 


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1 SEC. 3. LIMITATION ON LIABILITY OF PRODUCT SELLERS. 

2 (a) IN GENERAL.—No seller of any product shall be 

3 liable for personal injury, monetary loss, or damage to 

4 property arising out of an accident or transaction involv5 ing such product, unless the claimant proves one or more 

6 of the following activities by the seller: 

7 (1) The seller was the manufacturer of the 

8 product. 

9 (2) The seller participated in the design of the 

10 product. 

11 (3) The seller participated in the installation of 

12 the product. 

13 (4) The seller altered, modified, or expressly 

14 warranted the product in a manner not authorized 

15 by the manufacturer. 

16 (5) The seller had actual knowledge of the de17 fect in the product as a result of a recall from the 

18 manufacturer or governmental entity authorized to 

19 make such recall or actual inspection at the time the 

20 seller sold the product to the claimant. 

21 (6) The seller had actual knowledge of the de22 fect in the product at the time the seller supplied the 

23 product. 

24 (7) The seller intentionally altered or modified 

25 a product warranty, warning or instruction from the 


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1 manufacturer in a way not authorized by the manu2 facturer. 

3 (8) The seller knowingly made a false represen4 tation about an aspect of the product not authorized 

5 by the manufacturer. 

6 (b) LIABILITY OF SELLER IN CASES OF NEG7 LIGENCE.—If the claimant proves one or more of the ac8 tivities described in subsection (a) and such activity was 

9 negligent, the seller’s liability is limited to the personal 

10 injury, monetary loss, or damage to property, directly 

11 caused by such activity. 

12 (c) DEFINITIONS.—In this Act: 

13 (1) MANUFACTURER.—The term ‘‘manufac14 turer’’ means a person who is lawfully engaged in 

15 the business of manufacturing a product in inter16 state or foreign commerce during such person’s reg17 ular course of trade or business. 

18 (2) PERSON.—The term ‘‘person’’ means any 

19 individual, corporation, company, association, firm, 

20 partnership, society, joint stock company, or any 

21 other entity, including any governmental entity. 

22 (3) SELLER.—The term ‘‘seller’’ means a per23 son who is lawfully engaged in the business of mar24 keting, distributing, advertising, or selling a product 


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1 in interstate or foreign commerce during such per2 son’s regular course of trade or business. 

3 (d) EFFECTIVE DATE.—This Act applies to any civil 

4 action involving a product that was sold to the claimant 

5 on or after the date of the enactment of this Act. 

Æ 


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