What's Wrong Here?

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Answer:

Yes, someone actually used newspaper to plug the holes in this ceiling/floor penetration. This is clearly a violation of the requirements of 300.21, which states, “Electrical installations in hollow spaces, vertical shafts, and ventilation or air-handling ducts shall be made so that the possible spread of fire or products of combustion will not be substantially increased. Openings around electrical penetrations through fire-resistant–rated walls, partitions, floors, or ceilings shall be fire-stopped using approved methods to maintain the fire resistance rating."

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