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Risky Business

Before a defective product becomes your downfall, learn how to protect yourself.

This story appears in the March 2005 issue of Entrepreneur. Subscribe »

The seeds of your destruction may sit on your store shelves or be used in your warehouse. Defective products that injure customers, employees, vendors or others who visit your company or buy its goods present a serious risk no entrepreneur can afford to ignore.

Such products are widespread. A November 2004 report by Consumer Reports found, for instance, 48 toys--or roughly 1 in 3 toys--its testers bought violated voluntary or mandatory safety standards.

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