House passes product liability bill; White House threatens veto

WASHINGTON (Feb. 17)—For the second time in less than a month, the House of Representatives has passed a limited product liability reform bill which the Clinton administration opposes. The new bill, passed by a vote of 221-193, caps punitive damages at $250,000 or three times compensatory damages—whichever is less—in product liability lawsuits against companies with 25 or fewer employees; exempts retailers from liability for products received from manufacturers and sold without alteration; and applies uniform federal liability standards to supersede stricter rules in 41 states.