Posted by Eugene Volokh:
Federal Preemption of Some Product Liability Lawsuits, and States' Rights:

   D.C. law holds manufacturers of semiautomatic guns liable when
   criminals use those guns to commit crimes in D.C., even though the
   manufacturers made and sold those guns entirely outside D.C. Last
   week, [1]I complained about this; D.C., I argued, shouldn't be able to
   impose its policy judgments on behavior in other states:

     You may have the perfect right to buy such a gun in some state
     (let's say Tennessee), sellers may have the right to sell it to you
     there, and Tennessee-based manufacturers may have the right to make
     it there, both under Tennessee law and under federal law. But
     because of the actions of the D.C. City Council, the manufacturers
     may find themselves having to stop selling the guns in Tennessee,
     for fear of being sued in D.C. Or they may at least increase the
     gun's price, which means that the D.C. City Council would have
     effectively imposed a tax on what happens in Tennessee. . . .

     [I]t's wrong for the D.C. City Council, which represents about 0.2%
     of the U.S. population, to make rules that affect 99.8% of the
     population. That's precisely the sort of burden on extra-state
     behavior that Congress has the power to lift (even if the burden is
     imposed by a quasi-sovereign state, rather than by the D.C. City
     Council, which is directly within Congress's plenary power), and
     that Congress indeed should lift.

   This reasoning, of course, would apply equally to other products, such
   as alcohol (which I mentioned in my original post) or whatever else.

   But what about states' rights, some readers asked? Here's one message
   that I got:

     [A]llowing federal preemption of such [product liability] claims
     would vastly expand federal power into an undisputed traditional
     domain of state law -- not the kind of thing I expected a defender
     of states' rights (such as yourself) to say.

   My position, though, is all about protecting states' rights to govern
   behavior within their own states. I do generally think that on many
   (though not all) issues Oregonians should be decided what's allowed in
   Oregon and Tennesseeans should be deciding what's allowed in
   Tennessee. Rules of behavior in Tennessee should generally be set by
   the Tennessee Legislature, not the federal Congress.

   But rules of behavior in Tennessee shouldn't be set by the California
   Legislature or the D.C. City Council, either. And that's precisely
   what the D.C. statute that I faulted does: By imposing tort liability
   on behavior in Tennessee, it operates as a tax, a regulation, or even
   (practically) a prohibition on what Tennesseeans can do in Tennessee.

   It's a violation of states' rights, not a vindication, for one state
   to impose such regulations -- whether framed as tort liability or
   otherwise -- on behavior in another state. (Let's treat D.C. as a
   state for these purposes, since my call for federal preemption would
   apply equally if it had been a state.) Likewise, it's a vindication of
   states' rights, not a violation, for Congress to step forward to
   protect the rights of other states against this sort of unilateral
   imposition by D.C. law, or, for instance, [2]by California law that is
   interpreted as holding Glock liable for Glock sales practices in
   Washington State.

   Finally, I would caution against appeals to tradition here. It's true
   that most tort law has traditionally been state law; but that's partly
   because historically most tort liability has involved either entirely
   intrastate behavior or behavior that's largely intrastate. In
   particular, I don't think there has been a long tradition of tort law
   imposing liability on defendants' purely out-of-state behavior in the
   first place, especially when defendants' behavior was lawful in the
   state in which it took place.

   Moreover, as the economy has gotten more nationally integrated,
   Congress has indeed preempted state tort liability in many fields.
   This is clearest in sectors that have heavily involved interstate
   behavior, such as air travel; but it has happened even in areas where
   much more of the behavior is intrastate, such as (in considerable
   measure) labor law, employee benefits law, and more. Whether these
   federal actions were right or wrong, they must surely be counted when
   one is deciding what's "traditional" here.

References

   1. http://volokh.com/archives/archive_2005_04_17-2005_04_23.shtml#1114111634
   2. http://volokh.com/2003_11_16_volokh_archive.html#106936065700403382

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