Android Virus/Spyware

[testacon]

So I guess we all heard that Spyware/Viruses are starting to show more and more for the Android operating system, if not here's a link...

Android Spyware Distributed By Third Party Online Marketplaces -- InformationWeek

My question for you all is, how does one know if a vendor is reputable with it's software? I'm not one for installing anything on day one of a release anyway, but is there an approved vendor list out there that one can trust?

The article I linked to specifically mentioned 3rd party vendors/sideloading of apps but can't you get them as well from Google's marketplace? I'm all for being open but does Google actually verify if the app submitted does exactly and only what the app is advertised to do?

Just wondering how the rest of you handle this and what (if any) precautions you take?

Thanks!