Might not be readily apparent... disconnect it from the airbag, and from the harness. You can then test for continuity - you should have continuity from one pin of the harness side, to one pin of the airbag side, but NOT across the two pins. There are two reels inside the clear plastic case, and it'll be clear after looking at it how it works. As you'll see, if it's overextended one way or the other, the reels will break, and you'll have an intermittant connection as the broken ends of the reels scrape against each other. Provided everything appears to be in order, take care on reassembly to have the reel centered (equal distance between reels being fully loosened and fully tightened), and to not break the black follower tab, when you reinstall the steering wheel.
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina