In the case of a cheap 16awg cord, yes you have created a dangerous situation, but it is not one that is considered part of a larger structure in terms of code. This is the electrical equivalent of spraying gasoline around at the gas station and acting surprised when it turns out poorly for everyone.

> however that's something that I wouldn't do, so its not really my issue

Electrical code is designed so that even an incompetent operator cannot produce a dangerous situation inside a building's electrical system. OSHA, USCSB, et. al. would be the first to tell you that relying on a specific individual to interlock a dangerous situation can result in extremely adverse outcomes.