Updating definitions to halt the spread of frivolous lawsuits

Section 4 of the Protection of Lawful Commerce in Arms Act (15 U.S.C. 7903) is amended— (1) by striking paragraph (1) and inserting the following: (1) Engaged in the business The term engaged in the business means devoting time, attention, and labor to the sale, manufacture, or importation of a qualified product as a regular course of trade or business.; (2) in paragraph (2), by striking commerce and all that follows through the period at the end and inserting commerce, including any owner and employee of such person; (3) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10), respectively; (4) by inserting after paragraph (3) the following: (4) Proximate cause The term proximate cause means that the plaintiff was directly injured by the allegedly unlawful conduct of the defendant.; (5) by striking paragraph (5), as so redesignated, and inserting the following: (5) Qualified product The term qualified product means a firearm (as defined in subparagraph (A), (B), or (C) of section 921(a)(3) of title 18, United States Code), including any antique firearm (as defined in section 921(a)(16) of such title), ammunition (as defined in section 921(a)(17)(A) of such title), or a component part of, or an accessory intended for use with, a firearm or ammunition, including ammunition magazines or clips, optical devices, or other products intended to be included in, attached to, or used while attached to, or in conjunction with, a firearm or ammunition, that has been shipped or transported in interstate or foreign commerce.; (6) by striking paragraph (6), as so redesignated, and inserting the following: (6) Qualified civil liability action (A) In general The term qualified civil liability action means a civil action, proceeding, or administrative proceeding, or any claim asserted therein, brought by any person against a manufacturer or seller of a qualified product, or a trade association, for damages, punitive damages, injunctive or declaratory relief, abatement, restitution, fines, or penalties, or other relief, resulting from, on the basis of, arising out of, or in relation to the criminal or unlawful misuse, alteration, or modification of a qualified product by the person or a third party, under any theory of liability, including statutory claims or claims arising from tort or contract, but shall not include— (i) a claim brought against a transferor convicted under section 924(h) of title 18, United States Code, or a comparable or identical State felony law, by a party directly harmed by the conduct of which the transferee is so convicted; (ii) a claim brought against a seller for negligent entrustment or negligence per se; (iii) a claim— (I) in which a manufacturer or seller of a qualified product knowingly violated chapter 44 of title 18, United States Code, chapter 53 of the Internal Revenue Code of 1986, the Arms Export Control Act (22 U.S.C. 2751 et seq.), or the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.), or an equivalent State statute, that is intended to and exclusively imposes specific and concrete obligations on manufacturers and sellers regarding the manner in which qualified products are manufactured, distributed, or transferred to unlicensed persons; (II) in which the violation was a proximate cause of the harm for which relief is sought; and (III) that is not premised on nuisance or negligence, whether based in statute or common law; (iv) a claim for breach of contract or warranty in connection with the purchase of the product; (v) a claim for death, physical injuries or property damage resulting directly from a defect in design or manufacture of the product, when being lawfully used as intended or in a reasonably foreseeable manner, except that where the discharge of the product was caused by a volitional act which meets the elements of a criminal offense, then such act shall be considered the sole proximate cause of any resulting death, personal injuries or property damage; or (vi) a claim or proceeding commenced by the Attorney General to enforce the provisions of chapter 44 of title 18, United States Code, or chapter 53 of the Internal Revenue Code of 1986. (B) Negligent entrustment As used in subparagraph (A)(ii), the term negligent entrustment — (i) means the supplying of a qualified product by a seller for use by another person when the seller knows, or reasonably should know, the person to whom the product is supplied is themself likely to, and does, use the product in a manner involving unreasonable risk of physical injury to the person or others; and (ii) does not include instances in which the harm was caused by a person who was not entrusted with the qualified product directly by the seller. (C) Rule of construction The exceptions enumerated under clauses (i) through (v) of subparagraph (A) shall be construed so as not to be in conflict, and no provision of this Act shall be construed to create a public or private cause of action, claim, or remedy. (D) Minor child exception Nothing in this Act shall be construed to limit the right of a person under 17 years of age to recover damages authorized under Federal or State law in a civil action that meets one of the requirements under clauses (i) through (v) of subparagraph (A). (E) Foreign State and Governments (i) Definition The term foreign state or government includes any entity, agency, or instrumentality of a foreign state or government. (ii) Prohibition No foreign state or government may bring a civil action, proceeding, or administrative proceeding, or any claim asserted therein against a manufacturer or seller of a qualified product, or a trade association, for damages, punitive damages, injunctive or declaratory relief, abatement, restitution, fines, or penalties, or other relief, resulting from, on the basis of, arising out of, or in relation to the criminal or unlawful misuse, alteration, or modification of a qualified product by the person or a third party, under any theory of liability, including statutory claims or claims arising from tort or contract, in any Federal or State court. The exceptions to immunity provided under clauses (i) through (v) of subparagraph (A) shall not apply to any claim brought by a foreign state or government and may not be asserted by any foreign state or government in any Federal or State court.. (7) by striking paragraph (7), as so redesignated, and inserting the following: (7) Seller The term seller, with respect to a qualified product— (A) means— (i) an importer (as defined in section 921(a)(9) of title 18, United States Code) who is engaged in the business as such an importer in interstate or foreign commerce and who is licensed to engage in business as such an importer under chapter 44 of that title; (ii) a dealer (as defined in section 921(a)(11) of title 18, United States Code) who is engaged in the business as such a dealer in interstate or foreign commerce and who is licensed to engage in business as such a dealer under chapter 44 of that title; (iii) a person engaged in the business of selling ammunition (as defined in section 921(a)(17)(A) of title 18, United States Code); or (iv) a person engaged in the business of selling any other qualified product in interstate or foreign commerce at the wholesale or retail level, including import and export; (B) includes any owner or employee of the seller; and (C) does not include any manufacturer..