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Default 88 Merc Outboard Won't Shut Off

The bl/y wire is attached to the switch box. You can remove this wire
and test it with an ohm meter or continuity tester. One lead to the
wire the other lead to ground. When key is turned off should show
continuity. The other possibility is a bad kill circuit in the switch
box. To test the kill circuit you will need a DVA meter. Usually only
repair facities have this meter. Hope this helps.