Title: Innocent Sellers Fairness Act
Policy area: Law

Summary:
Innocent Sellers Fairness Act
This bill exempts a seller from liability for personal injury, monetary loss, or damage to property arising out of an accident or transaction involving a seller's products during the regular course of trade or business, unless the claimant proves that the seller:
The bill limits the seller's liability to the personal injury, monetary loss, or damage to property directly caused by such activity where a claimant proves one or more of such activities was negligent.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1118 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1118

 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

                           February 16, 2017

Mr. Farenthold (for himself, Mr. Duncan of Tennessee, and Mr. Smith of 
    Texas) 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innocent Sellers Fairness Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) an innocent seller should not be held responsible under 
        the doctrine of product liability for damages that the seller 
        did not cause;
            (2) as a result of product liability, sellers are often 
        brought into litigation despite the fact that they had no 
        control or input in the design, production, or any other aspect 
        of an allegedly defective product, and may therefore face 
        increased costs due to the possibility or result of 
        disproportionate damage awards;
            (3) due to high liability costs and unwarranted litigation 
        costs, sellers face higher costs in purchasing insurance 
        through interstate insurance markets to cover their activities;
            (4) liability reform for sellers will promote the free flow 
        of goods and services, lessen burdens on interstate commerce, 
        decrease litigiousness, and lower prices to consumers; and
            (5) legislation to address these concerns is an appropriate 
        exercise of the powers of Congress under clauses 3, 9, and 18 
        of section 8 of article I of the Constitution of the United 
        States, and the 14th Amendment to the Constitution of the 
        United States.

SEC. 3. LIMITATION ON LIABILITY OF PRODUCT SELLERS.

    (a) In General.--No seller of any product shall be liable for 
personal injury, monetary loss, or damage to property arising out of an 
accident or transaction involving such product, unless the claimant 
proves one or more of the following activities by the seller:
            (1) The seller was the manufacturer of the product.
            (2) The seller participated in the design of the product.
            (3) The seller participated in the installation of the 
        product.
            (4) The seller altered, modified, or expressly warranted 
        the product in a manner not authorized by the manufacturer.
            (5) The seller had actual knowledge of the defect in the 
        product as a result of a recall from the manufacturer or 
        governmental entity authorized to make such recall or actual 
        inspection at the time the seller sold the product to the 
        claimant.
            (6) The seller had actual knowledge of the defect in the 
        product at the time the seller supplied the product.
            (7) The seller intentionally altered or modified a product 
        warranty, warning or instruction from the manufacturer in a way 
        not authorized by the manufacturer.
            (8) The seller knowingly made a false representation about 
        an aspect of the product not authorized by the manufacturer.
    (b) Liability of Seller in Cases of Negligence.--If the claimant 
proves one or more of the activities described in subsection (a) and 
such activity was negligent, the seller's liability is limited to the 
personal injury, monetary loss, or damage to property, directly caused 
by such activity.
    (c) Definitions.--In this Act:
            (1) Manufacturer.--The term ``manufacturer'' means a person 
        who is lawfully engaged in the business of manufacturing a 
        product in interstate or foreign commerce during such person's 
        regular course of trade or business.
            (2) Person.--The term ``person'' means any individual, 
        corporation, company, association, firm, partnership, society, 
        joint stock company, or any other entity, including any 
        governmental entity.
            (3) Seller.--The term ``seller'' means a person who is 
        lawfully engaged in the business of marketing, distributing, 
        advertising, or selling a product in interstate or foreign 
        commerce during such person's regular course of trade or 
        business.
    (d) Effective Date.--This Act applies to any civil action involving 
a product that was sold to the claimant on or after the date of the 
enactment of this Act.
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