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I am wondering if signs ("beware of dog") would make any difference in a lawsuit? I have no background in law so I really don't know. Could that be considered that you have given fair warning to any trespassers?

You probably would want to do an additional something else to prevent the bite from even happening. but it might be something you could do that might be a visual shout-out to parents, so they can be more proactive.
 
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