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which are not apparent to all. Such hazards must be controlled and limited not at at the option of the producer but as a matter of right to the consumer. Many hazards described in this report are unnecessary and can be eliminated without substantially affecting the price to the consumer.

Unfortunately, in the absence of external compulsion it is predictable that there will continue to be an indecent time lag between exposure to a hazard and its elimination. Other advanced nations apparently have discovered this flaw in the output of competitive free enterprise and have made safe products an ongoing governmental objective.

This report proposes means which afford American industry an opportunity to progress voluntarily toward product safety and which, at the same time, should guarantee a new dynamism to that effort. Our suggested procedures are equitable to the consumer and producer alike. The goal is clear. This Nation's safety standards and practices must have an exemplary quality consistent with the primacy of American technology.

The operative processes responsible for the unacceptable conditions we found are truly impersonal. Producers, sellers, and buyers have been trapped by complex economic forces which have been understood by too few and addressed all too seldom.

A major concern of our recommendations has been to provide government with an adaptive instrumentality for protecting the consumer from product hazards for a reasonable time to come. The historic stream of product safety flows swiftly and erratically. The quality of protection appropriate at a given time depends on technology, the economy, and the temper of our humanitarian concern. If acted upon, this final report will be a beginning to an era of consumer protection rather than an end to our endeavors.

Although this report is directed to the President and Congress, we earnestly hope that consumers, businessmen, and the professional and academic communities will find its contents useful in the common search for methods to protect human life and safety in an environment which seems progressively to magnify the challenge to "live and be well."

By direction of the Commission.

Dorld Rrefie

Arnold B. Elkind, Chairman

50-291 0.70 - 5

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Practices of Manufacturers

Awareness of Responsibility
Human Engineering
New Product Design

Analysis of Replies
Conclusions
CHAPTER 5
CONSUMER EDUCATION EFFORTS:

IMPORTANCE AND VALUE OF INFORMATION SERVICES
The Untutored Consumer
Formal Education

Limited Information
Symbols of Safety

Truth in Certification
Conclusions
CHAPTER 6
THE ECONOMICS OF SAFETY: PRICE OF SAFEGUARDS; COST OF INJURY

Cost Data
Trade-offs
Market Forces

Role of Consumer

Role of Manufacturer
Enter the Third Party

Third Party Role
How High the Risk
Large Purchasers
Insurers . .

The Government
Conclusions

63 63 64 65 65 66 66

67

68 68 69 69 69 69 70 70 70 70 71 71

PART IV
Law and Administration

CHAPTER 7
REMEDIES AFTER THE INJURY: IMPACT OF COMMON LAW ON CONSUMERS

73

Consumers in Court.
Fair Compensation
Responsive Courts
Strict Liability

Assumption of Risk
Warnings
Endorsements

Standards in Evidence
Code Changes

Privity
Notice of Defect
Disclaimers

Statute of Limitations
Death Ceilings
Jurisdiction
Small Claims
Court Delays
Conclusions

73 74 74 74 75 75 76 76 76 76 77 77 78 78 78 78 78 78

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