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I bet that there are situations where it would be quite useful to have 'dual rated' cable that was both one of the 'SO' family of cords, and _also_ listed as a type NM cable.

Jon, I'll see your bet and raise you one. [Linked Image]

I can't think of anyplace it would be advantageous at all.

Just a personal observation, but most of the places I've seen rotten cord has been where it's NOT been flexed, has been in a stationery position for years, and when someone goes to flex it, the insulation crumbles off of the individual conductors.
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On different notes, pendant comes from the same word as pendulum, appendage, etc., which are free to swing, & attached on one end.
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(BTW) 400.8(7) Was added in the 2005 NEC to include "where subject to physical damage" as a use not permitted. The "better because it gives some if hit" argument is no good. Could this be just the reason it was added? to clarify the intent?