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Judiciary hearing: 'Holding Foreign Manufacturers Accountable'

Liability for contaminated Chinese drywall was just one topic in extensive legal discussions this morning during a Senate Judiciary Committee's subcommittee hearing, "Leveling the Playing Field and Protecting Americans: Holding Foreign Manufacturers Accountable." (Earlier post.) Prepared statements:

Teitz and Schwartz's statements were the most substantive dealing with legal issues, particularly questions of jurisdiction, service of process, and enforcing judgments regarding foreign manufacturers selling defective products into the United States. Schwartz also analyzes the many problematic provisions in last year's House bill, H.R. 5913, Protecting Americans from Unsafe Foreign Products Act. He concluded:

It is important to note that the extent to which foreign manufacturers should be subject to the U.S. tort system is an area of which there is not clear consensus in the business community. However, there is consensus that the U.S. tort system can "overheat" and impose liability that is above and beyond what is reasonable. Furthermore, the cost of the American liability system can significantly increase the prices of products that are subject to it. For these reasons, it is particularly important that Congress not inadvertently expand jurisdiction or liability in such a way that would further damage our already weakened economy.

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.