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99TH CONGRESS
2D SESSION

Calendar No. 856

S. 2760

[Report No. 99-422]

To regulate interstate commerce by providing for a uniform product liability law,
and for other purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 14 (legislative day, AUGUST 11), 1986

Mr. DANFORTH, from the Committee on Commerce, Science, and Transportation,
reported the following original bill; which was read twice and placed on the
calendar

A BILL

To regulate interstate commerce by providing for a uniform
product liability law, and for other purposes.

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(2) "clear and convincing evidence" is that measure or degree of proof that will produce in the mind of

the trier of fact a firm belief or conviction as to the

truth of the allegations sought to be established; the

level of proof required to satisfy such standard is more than that required under preponderance of the evidence, but less than that required for proof beyond a reasonable doubt;

(3) "collateral benefits" means all benefits and advantages received or entitled to be received (regardless of any right any other person has or is entitled to assert for recoupment through subrogation, trust agreement, lien, or otherwise) by any claimant harmed by a product or by any other person as reimbursement of loss because of harm to person or property payable or

required to be paid to the claimant, under—

(A) any Federal law or the laws of any State (other than through a claim for breach of an obli

gation or duty); or

(B) any life, health or accident insurance or plan, wage of salary continuation plan, or disability income or replacement service insurance or any benefit received or to be received as a result of participation in any pre-paid medical plan or Health Maintenance Organization;

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(4) "commerce" means trade, traffic, commerce,

or transportation (A) between a place in a State and

any place outside of that State; or (B) which affects

4 trade, traffic, commerce, or transportation described in

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clause (A);

(5) "commercial loss" means economic injury, whether direct, incidental, or consequential, including

property damage and damage to the product itself, in

curred by persons regularly engaged in business activities consisting of providing goods or services for compensation;

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(6) for the purposes of title II of this Act, "dignitary loss" means noneconomic loss resulting from harm caused by a product, compensable under State law, in the amount of $100,000, and consisting of pain and suffering or mental anguish associated with (A) the death of a parent, child or spouse; (B) serious and permanent disfigurement; (C) loss of a limb or organ; or (D) serious and permanent impairment of a bodily function;

(7) "economic loss" means any pecuniary loss resulting from harm which is allowed under State law; (8) "exercise of reasonable care" means conduct of a person of ordinary prudence and intelligence using

the attention, precaution and judgment that society ex

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pects of its members for the protection of their own interests and the interests of others;

(9) "harm" means any harm recognized under the

law of the State in which the civil action is maintained,

other than loss or damage caused to a product itself, or commercial loss, with respect to which recovery is available under the commercial or contract law of the State;

(10) "manufacturer" means (A) any person who is engaged in a business to produce, create, make, or construct any product (or component part of a product) and who designs or formulates the product (or compo

nent part of the product) or has engaged another

person to design or formulate the product (or compo

nent part of the product); (B) a product seller with respect to all aspects of a product (or component part of a product) which are created or affected when, before placing the product in the stream of commerce, the

product seller produces, creates, makes, or constructs and designs or formulates, or has engaged another

person to design or formulate, an aspect of a product (or component part of a product) made by another; or

(C) any product seller not described in clause (B) which

holds itself out as a manufacturer to the user of a product;

S 2760 PCS

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