If you think thats bad you should see the other end where it goes out into the A/C unit, and the tail of 10/2 coming out of it and into a 50A welder receptacle in a non weatherproof enclosure under the deck! ( originally that circuit had a 40 amp breaker on it as well!)
Maybe the Canadian Code differs, but that might actually be acceptable under the NEC, provided the receptacle is used only for a welder (I mean the ampacity part, not the non-weatherproof enclosure). It all depends on the type of welder and the duty cycle; there are derating factors that sometimes allow you to use a 40A breaker with #10.
