When lights or appliances in a circuit demand more current than the circuit can safely carry, it can lead to overheating of the wiring, which poses a fire hazard. Circuit breakers or fuses are designed to trip or blow, respectively, interrupting the flow of electricity to prevent damage and ensure safety. If these protective devices fail, it can result in electrical fires or damage to the appliances and wiring. Therefore, it's crucial to ensure circuits are properly rated for the load they will carry.
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