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The Consumer Product Safety Improvement Act (commonly referred to as the “CPSIA”) was enacted in August 2008 in the wake of a sharp increase in recalls of children's products, particularly the recall of toys during and after the 2007 holiday season. This article provides an overview of the CPSIA, including a summary of key provisions, an update on agency rulemaking to implement the law, and an assessment of the risks and challenges related to compliance with the law.
The CPSIA instituted significant new regulatory requirements applicable not only to toys and consumer products marketed to children, but to all consumer products that are regulated by the Consumer Product Safety Commission (the “CPSC”). Key components of the CPSIA include:
The CPSIA applies most significantly to all manufacturers and importers of products regulated under U.S. consumer product safety laws, including products regulated under the Federal Hazardous Substances Act (“FHSA”); Flammable Fabrics Act (“FFA”); Poison Packaging Prevention Act (“PPA”); and Refrigerator Safety Act (“RFA”).
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There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
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