(i) is engaged in a business to 
produce, create, make, or construct any 
product (or component part of a product); 
and 
(ii)(I) designs or formulates the prod-
uct (or component part of the product); or 
(II) has engaged another person to 
design or formulate the product (or compo-
nent part of the product); 
(B) a product seller, but only with respect 
to those aspects of a product (or component 
part of a product) that are created or affected 
when, before placing the product in the stream 
of commerce, the product seller— 
(i) produces, creates, makes, con-
structs and designs, or formulates an as-
pect of the product (or component part of 
the product) made by another person; or 
(ii) has engaged another person to de-
sign or formulate an aspect of the product
(or component part of the product) made 
by another person; or 
(C) any product seller not described in 
subparagraph (B) that holds itself out as a 
manufacturer to the user of the product.
(9) NONECONOMIC
LOSS.—The term ‘‘non-
economic loss’’ means loss for physical or emotional 
pain, suffering, inconvenience, physical impairment, 
mental anguish, disfigurement, loss of enjoyment of 
life, loss of society and companionship, loss of con-
sortium (other than loss of domestic service), injury 
to reputation, or any other nonpecuniary loss of any 
kind or nature. 
(10) PERSON.—The term ‘‘person’’ means any 
individual, corporation, company, association, firm, 
partnership, society, joint stock company, or any 
other entity (including any governmental entity). 
(11) PRODUCT.—
(A) IN
GENERAL.—The term ‘‘product’’ 
means any object, substance, mixture, or raw 
material in a gaseous, liquid, or solid state 
that—
(i) is capable of delivery itself or as an 
assembled whole, in a mixed or combined 
state, or as a component part or ingre-
dient; 
(ii) is produced for introduction into 
trade or commerce; 
(iii) has intrinsic economic value; and
(iv) is intended for sale or lease to 
persons for commercial or personal use. 
(B) EXCLUSION.—The term ‘‘product’’ 
does not include—
(i) tissue, organs, blood, and blood 
products used for therapeutic or medical 
purposes, except to the extent that such 
tissue, organs, blood, and blood products 
(or the provision thereof) are subject, 
under applicable State law, to a standard 
of liability other than negligence; or 
(ii) electricity, water delivered by a 
utility, natural gas, or steam. 
(12) PRODUCT LIABILITY ACTION.—
(A) GENERAL RULE.—Except as provided 
in subparagraph (B), the term ‘‘product liabil-
ity action’’ means a civil action brought on any 
theory for a claim for any physical injury, ill-
ness, disease, death, or damage to property that 
is caused by a product. 
(B) The following claims are not included 
in the term ‘‘product liability action’’: 
(i) NEGLIGENT
ENTRUSTMENT.—A 
claim for negligent entrustment.
(ii) NEGLIGENCE
PER
SE.—A claim 
brought under a theory of negligence per 
se. 
(iii) DRAM-SHOP.—A claim brought 
under a theory of dram-shop or third-party 
liability arising out of the sale or providing 
of an alcoholic product to an intoxicated 
person or minor. 
(13) PRODUCT SELLER.—
(A) IN GENERAL.—The term ‘‘product sell-
er’’ means a person who in the course of a busi-
ness conducted for that purpose—
(i) sells, distributes, rents, leases, pre-
pares, blends, packages, labels, or other-
wise is involved in placing a product in the 
stream of commerce; or 
(ii) installs, repairs, refurbishes, re-
conditions, or maintains the harm-causing 
aspect of the product. 
(B) EXCLUSION.—The term ‘‘product sell-
er’’ does not include—
(i) a seller or lessor of real property; 
(ii) a provider of professional services 
in any case in which the sale or use of a 
product is incidental to the transaction and
the essence of the transaction is the fur-
nishing of judgment, skill, or services; or 
(iii) any person who—
(I) acts in only a financial capac-
ity with respect to the sale of a prod-
uct; or 
(II) leases a product under a 
lease arrangement in which the lessor 
does not initially select the leased 
product and does not during the lease 
term ordinarily control the daily oper-
ations and maintenance of the prod-
uct. 
(14) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Is-
lands, any other territory or possession of the 
United States, or any political subdivision of any 
such State, commonwealth, territory, or possession. 
SEC. 203. APPLICABILITY; PREEMPTION. 
(a) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this title governs any product liability ac-
tion brought in any Federal or State court.
(2) ACTIONS FOR COMMERCIAL LOSS.—A civil 
action brought for commercial loss shall be governed 
only by applicable State commercial or contract laws 
that are similar to the Uniform Commercial Code. 
(b) RELATIONSHIP TO STATE LAW.—This title su-
persedes a State law only to the extent that the State law 
applies to an issue covered by this title. Any issue that 
is not governed by this title, including any standard of 
liability applicable to a manufacturer, shall be governed 
by any applicable Federal or State law. 
(c) EFFECT ON OTHER LAW.—Nothing in this title 
shall be construed to—
(1) waive or affect any defense of sovereign im-
munity asserted by any State under any State law; 
(2) supersede or alter any Federal law; 
(3) waive or affect any defense of sovereign im-
munity asserted by the United States; 
(4) affect the applicability of any provision of 
chapter 97 of title 28, United States Code;
(5) preempt State choice-of-law rules with re-
spect to claims brought by a foreign nation or a cit-
izen of a foreign nation; 
(6) affect the right of any court to transfer 
venue or to apply the law of a foreign nation or to 
dismiss a claim of a foreign nation or of a citizen