1.1                          A bill for an act 
  1.2             relating to civil actions; clarifying provisions 
  1.3             governing actions for fraud under the uniform 
  1.4             commercial code; clarifying actions for economic loss 
  1.5             arising from the sale of goods; amending Minnesota 
  1.6             Statutes 1996, sections 336.2-721; and 604.10. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 336.2-721, is 
  1.9   amended to read: 
  1.10     336.2-721 [REMEDIES FOR FRAUD.] 
  1.11     Remedies for material misrepresentation or fraud include 
  1.12  all remedies available under this article for nonfraudulent 
  1.13  breach.  Neither rescission or a claim for rescission of the 
  1.14  contract for sale nor rejection or return of the goods shall bar 
  1.15  or be deemed inconsistent with a claim for damages or other 
  1.16  remedy.  Section 604.10 does not bar tort actions for fraud or 
  1.17  intentional misrepresentation or limit remedies for such actions.
  1.18     Sec. 2.  Minnesota Statutes 1996, section 604.10, is 
  1.19  amended to read: 
  1.20     604.10 [ECONOMIC LOSS ARISING FROM THE SALE OF GOODS.] 
  1.21     (a) Economic loss that arises from a sale of goods that is 
  1.22  due to damage to tangible property other than the goods sold may 
  1.23  be recovered in tort as well as in contract, but economic loss 
  1.24  that arises from a sale of goods between parties who are each 
  1.25  merchants in goods of the kind is not recoverable in tort. 
  1.26     (b) Economic loss that arises from a sale of goods, between 
  2.1   merchants, that is not due to damage to tangible property other 
  2.2   than the goods sold may not be recovered in tort. 
  2.3      (c) The economic loss recoverable in tort under this 
  2.4   section does not include economic loss due to damage to the 
  2.5   goods themselves. 
  2.6      (d) The economic loss recoverable in tort under this 
  2.7   section does not include economic loss incurred by a 
  2.8   manufacturer of goods arising from damage to the manufactured 
  2.9   goods and caused by a component of the goods. 
  2.10     (e) This section shall not be interpreted to bar tort 
  2.11  actions for fraud or intentional misrepresentation or limit 
  2.12  remedies for such actions. 
  2.13     Sec. 3.  [EFFECTIVE DATE.] 
  2.14     Sections 1 and 2 are effective the day following final 
  2.15  enactment and apply to actions pending on or commenced on or 
  2.16  after that date.