1Amending Title 42 (Judiciary and Judicial Procedure) of the
2Pennsylvania Consolidated Statutes, in particular rights and
3immunities, providing for liability rules applicable to
4product sellers and manufacturers.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Title 42 of the Pennsylvania Consolidated
8Statutes is amended by adding a section to read:

9§ 8340.3. Liability rules applicable to product sellers and
10manufacturers.

11(a) Innocent seller.--No product liability action based on
12the doctrine of strict liability in tort shall be commenced or
13maintained against any seller of a product which is alleged to
14contain or possess a defective condition unreasonably dangerous
15to the buyer, user or consumer unless the seller is also the
16manufacturer of the product or the manufacturer of the part
17thereof claimed to be defective giving rise to the product
18liability action. Nothing under this subsection shall be

1construed to limit any other action from being brought against
2any seller of a product.

3(b) Product misuse.--A product liability action may not be
4commenced or maintained against a manufacturer or seller of a
5product that caused injury, death or property damage if any of
6the following apply:

7(1) At the time the injury, death or property damage
8occurred, the product was used in a manner or for a purpose
9other than that which was intended and which could not
10reasonably have been expected and the misuse of the product
11was a cause of the injury, death or property damage.

12(2) The manufacturer or seller of the product provided
13warning or instruction that, if heeded, would have prevented
14the injury, death or property damage.

15(c) Presumptions.--The following presumptions shall apply to
16product liability actions:

17(1) In any product liability action, it shall be
18rebuttably presumed that the product which caused the injury,
19death or property damage was not defective and that the
20manufacturer or seller of the product was not negligent if
21any of the following applies:

22(i) The product, prior to sale by the manufacturer,
23conformed to the state of the art, as distinguished from
24industry standards, applicable to the product in
25existence at the time of sale.

26(ii) The product complied with, at the time of sale
27by the manufacturer, any applicable code, standard or
28regulation adopted or promulgated by the United States or
29the Commonwealth.

30(2) Noncompliance with a government code, standard or

1regulation existing and in effect at the time of sale of the
2product by the manufacturer which contributed to the claim or
3injury shall create a rebuttable presumption that the product
4was defective or negligently manufactured.

5(3) Ten years after a product is first sold for use or
6consumption, it shall be rebuttably presumed that the product
7was not defective and that the manufacturer or seller of the
8product was not negligent and that all warnings and
9instructions were proper and adequate.

10(4) In a product liability action in which the court
11determines by a preponderance of the evidence that the
12necessary facts giving rise to a presumption have been
13established, the court shall instruct the jury concerning the
14presumption.

15(d) Definitions.--As used in this section, the following
16words and phrases shall have the meanings given to them in this
17subsection:

18"Manufacturer." A person or entity who designs, assembles, 
19fabricates, produces, constructs or otherwise prepares a product 
20or a component part of a product prior to the sale of the 
21product to a user or consumer. The term includes any of the 
22following:

23(1) A seller of a product who has actual knowledge of a
24defect in the product.

25(2) A seller of a product who creates and furnishes a
26manufacturer with specifications relevant to the alleged
27defect for producing the product.

28(3) A seller of a product who otherwise exercises some
29significant control over all or a portion of the
30manufacturing process.

1(4) A seller of a product who alters or modifies a
2product in any significant manner after the product comes
3into his possession and before it is sold to the ultimate
4user or consumer.

5(5) A seller of a product who is owned in whole or
6significant part by the manufacturer or who owns, in whole or
7significant part, the manufacturer. A seller not otherwise a
8manufacturer shall not be deemed to be a manufacturer merely
9because he places or has placed a private label on a product
10if:

11(i) He did not:

12(A) otherwise specify how the product shall be
13produced; or

14(B) control, in some significant manner, the
15manufacturing process of the product.

16(ii) The seller discloses who the actual
17manufacturer is.

18"Product liability action." Any action brought against a 
19manufacturer or seller of a product, regardless of the 
20substantive legal theory or theories upon which the action is 
21brought, for or on account of personal injury, death or property 
22damage caused by or resulting from any of the following:

23(1) The manufacture, construction, design, formula,
24installation, preparation, assembly, testing, packaging,
25labeling or sale of any product.

26(2) The failure to warn or protect against a danger or
27hazard in the use, misuse or unintended use of any product.

28(3) The failure to provide proper instructions for the
29use of any product.

30"Seller." An individual or entity, including a manufacturer, 

1wholesaler, distributor or retailer, who is engaged in the 
2business of selling or leasing any product for resale, use or 
3consumption.

4Section 2. This act shall apply to all actions instituted on
5or after the effective date of this section.

6Section 3. This act shall take effect in 60 days.