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In response to a congressional request, GAO examined ways to deal with the potential liability that providers of weather observations under contract with the National Weather Service (NWS) face arising from their employees' use of a two-way radio transmitter to advise pilots of local conditions. GAO found that: (1) NWS could use indemnity clauses in contracts if the clauses limited federal liability to its appropriations available at the time of the liability; and (2) the Product Liability Risk Retention Act enables certain businesses with common liability risks to form self-insurance pools which are subject to less regulation than conventional insurance companies.


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