1.1                          A bill for an act 
  1.2             relating to civil actions; clarifying the effect of 
  1.3             the economic loss statute on actions based upon fraud 
  1.4             or intentional misrepresentation; amending Minnesota 
  1.5             Statutes 1996, section 604.10. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 604.10, is 
  1.8   amended to read: 
  1.9      604.10 [ECONOMIC LOSS ARISING FROM THE SALE OF GOODS.] 
  1.10     (a) Economic loss that arises from a sale of goods that is 
  1.11  due to damage to tangible property other than the goods sold may 
  1.12  be recovered in tort as well as in contract, but economic loss 
  1.13  that arises from a sale of goods between parties who are each 
  1.14  merchants in goods of the kind is not recoverable in tort. 
  1.15     (b) Economic loss that arises from a sale of goods, between 
  1.16  merchants, that is not due to damage to tangible property other 
  1.17  than the goods sold may not be recovered in tort. 
  1.18     (c) The economic loss recoverable in tort under this 
  1.19  section does not include economic loss due to damage to the 
  1.20  goods themselves. 
  1.21     (d) The economic loss recoverable in tort under this 
  1.22  section does not include economic loss incurred by a 
  1.23  manufacturer of goods arising from damage to the manufactured 
  1.24  goods and caused by a component of the goods. 
  1.25     (e) This section shall not be interpreted to bar tort 
  2.1   causes of action based upon fraud or fraudulent or intentional 
  2.2   misrepresentation or limit remedies for those actions. 
  2.3      Sec. 2.  [LEGISLATIVE INTENT.] 
  2.4      The amendment in section 1 is intended to clarify, rather 
  2.5   than to change, the original intent of Minnesota Statutes, 
  2.6   section 604.10. 
  2.7      Sec. 3.  [REVISOR'S INSTRUCTION.] 
  2.8      In the next and subsequent editions of Minnesota Statutes, 
  2.9   the revisor shall insert an annotation to Minnesota Statutes, 
  2.10  section 336.2-721, alerting the reader to Minnesota Statutes, 
  2.11  section 604.10, and the interrelationship of the two sections. 
  2.12     Sec. 4.  [EFFECTIVE DATE.] 
  2.13     This act is effective the day following final enactment and 
  2.14  applies to actions pending on or commenced on or after that date.