It sounds like a Cal/OSHA issue for jobsite safety, and it is. However, it can also be a problem in a existing home or an older installation. Electrical codes have changed over the years. These changes have all been to protect us with better, safer, designs and practices. Even with these advancements, just like anything else, electrical components will wear out. The problem is this can cause fires or electrocution and will damage equipment that is still in operation.