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                                                       PRINTER'S NO. 583

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 470 Session of 2007


        INTRODUCED BY REED, BASTIAN, BOYD, CAPPELLI, CAUSER, COX,
           CREIGHTON, DENLINGER, FAIRCHILD, FLECK, GILLESPIE, GINGRICH,
           GRELL, HICKERNELL, HORNAMAN, KILLION, KOTIK, McILHATTAN,
           METCALFE, MILLARD, MUSTIO, PEIFER, REICHLEY, SCAVELLO AND
           TURZAI, MARCH 6, 2007

        REFERRED TO COMMITTEE ON JUDICIARY, MARCH 6, 2007

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, providing for liability
     3     rules applicable to product sellers and manufacturers.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Title 42 of the Pennsylvania Consolidated
     7  Statutes is amended by adding a section to read:
     8  § 8340.2.  Liability rules applicable to product sellers and
     9             manufacturers.
    10     (a)  Innocent seller.--No product liability action based on
    11  the doctrine of strict liability in tort shall be commenced or
    12  maintained against any seller of a product which is alleged to
    13  contain or possess a defective condition unreasonably dangerous
    14  to the buyer, user or consumer unless the seller is also the
    15  manufacturer of the product or the manufacturer of the part
    16  thereof claimed to be defective giving rise to the product
    17  liability action. Nothing in this subsection shall be construed

     1  to limit any other action from being brought against any seller
     2  of a product.
     3     (b)  Product misuse.--A product liability action may not be
     4  commenced or maintained against a manufacturer or seller of a
     5  product that caused injury, death or property damage if any of
     6  the following apply:
     7         (1)  At the time the injury, death or property damage
     8     occurred, the product was used in a manner or for a purpose
     9     other than that which was intended and which could not
    10     reasonably have been expected and the misuse of the product
    11     was a cause of the injury, death or property damage.
    12         (2)  The manufacturer or seller of the product provided
    13     warning or instruction that, if heeded, would have prevented
    14     the injury, death or property damage.
    15     (c)  Presumptions.--The following presumptions shall apply to
    16  product liability actions:
    17         (1)  In any product liability action, it shall be
    18     rebuttably presumed that the product which caused the injury,
    19     death or property damage was not defective and that the
    20     manufacturer or seller of the product was not negligent if
    21     any of the following applies:
    22             (i)  The product, prior to sale by the manufacturer,
    23         conformed to the state of the art, as distinguished from
    24         industry standards, applicable to the product in
    25         existence at the time of sale.
    26             (ii)  The product complied with, at the time of sale
    27         by the manufacturer, any applicable code, standard or
    28         regulation adopted or promulgated by the United States or
    29         the Commonwealth.
    30         (2)  Noncompliance with a government code, standard or
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     1     regulation existing and in effect at the time of sale of the
     2     product by the manufacturer which contributed to the claim or
     3     injury shall create a rebuttable presumption that the product
     4     was defective or negligently manufactured.
     5         (3)  Ten years after a product is first sold for use or
     6     consumption, it shall be rebuttably presumed that the product
     7     was not defective and that the manufacturer or seller of the
     8     product was not negligent and that all warnings and
     9     instructions were proper and adequate.
    10         (4)  In a product liability action in which the court
    11     determines by a preponderance of the evidence that the
    12     necessary facts giving rise to a presumption have been
    13     established, the court shall instruct the jury concerning the
    14     presumption.
    15     (d)  Definitions.--As used in this section, the following
    16  words and phrases shall have the meanings given to them in this
    17  subsection:
    18     "Manufacturer."  A person or entity who designs, assembles,
    19  fabricates, produces, constructs or otherwise prepares a product
    20  or a component part of a product prior to the sale of the
    21  product to a user or consumer. The term includes any of the
    22  following:
    23         (1)  A seller of a product who has actual knowledge of a
    24     defect in the product.
    25         (2)  A seller of a product who creates and furnishes a
    26     manufacturer with specifications relevant to the alleged
    27     defect for producing the product.
    28         (3)  A seller of a product who otherwise exercises some
    29     significant control over all or a portion of the
    30     manufacturing process.
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     1         (4)  A seller of a product who alters or modifies a
     2     product in any significant manner after the product comes
     3     into his possession and before it is sold to the ultimate
     4     user or consumer.
     5         (5)  A seller of a product who is owned in whole or
     6     significant part by the manufacturer or who owns, in whole or
     7     significant part, the manufacturer. A seller not otherwise a
     8     manufacturer shall not be deemed to be a manufacturer merely
     9     because he places or has placed a private label on a product
    10     if:
    11             (i)  He did not:
    12                 (A)  otherwise specify how the product shall be
    13             produced; or
    14                 (B)  control, in some significant manner, the
    15             manufacturing process of the product.
    16             (ii)  The seller discloses who the actual
    17         manufacturer is.
    18     "Product liability action."  Any action brought against a
    19  manufacturer or seller of a product, regardless of the
    20  substantive legal theory or theories upon which the action is
    21  brought, for or on account of personal injury, death or property
    22  damage caused by or resulting from any of the following:
    23         (1)  The manufacture, construction, design, formula,
    24     installation, preparation, assembly, testing, packaging,
    25     labeling or sale of any product.
    26         (2)  The failure to warn or protect against a danger or
    27     hazard in the use, misuse or unintended use of any product.
    28         (3)  The failure to provide proper instructions for the
    29     use of any product.
    30     "Seller."  An individual or entity, including a manufacturer,
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     1  wholesaler, distributor or retailer, who is engaged in the
     2  business of selling or leasing any product for resale, use or
     3  consumption.
     4     Section 2.  This act shall apply to all actions instituted on
     5  or after the effective date of this section.
     6     Section 3.  This act shall take effect in 60 days.
















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