The ABA supports the continuation of the authority of the states and territories to regulate product liability law. The ABA opposes the product seller provisions of Section 204 of H.R. 2366 because those provisions remove the motivation of the only party with direct contact with the consumer, the seller, to ensure that the shelves in American businesses are stocked only with safe products. Seller liability is an effective way of maintaining and improving product safety.
Manufacturers traditionally rely on sellers to market their products.
Through their purchasing and marketing power, sellers have influenced manufacturers to design and produce safer consumer goods. Ambiguity in the language of H.R. 2366 may result in unintentionally eliminating grounds for liability which promote safety. For example, H.R. 2366 expressly eliminates a product seller's liability for breach of warranty except for breach of express warranties. The Uniform Commercial Code, long regarded as a reasonable, balanced law, holds sellers responsible for breach of implied warranties as well. By its vague and ambiguous language, H.R. 2366 may result in preempting these long established grounds of liability.