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Question:

Why would an electrical receptacle be wired in this fashion?

An incoming cable (line) is connected to a standard receptacle with the hot (black) wire attached to the upper screw (brass) and the white (common) wire attached to the lower screw (silver). The outgoing cable (load) is attached to the other two screws in the same manner. In my limited residential experience, the line cable will be attached to opposing screw contacts (upper 2 screws) with the second cable (load) attached to the bottom two contact screws on a standard electrical receptacle. In what conditions would these cable contacts be split like this? I have a short along this circuit somewhere and I am wondering if this is the problem?

Answer:

That is wired properly. All your black goes to brass and all white goes to silver. Brass will always be on one side and silver will always be on the other. This was obviously wired this way before there were problems. It's fine. **REVISED** I would ask the guy who said the whites need to be pig tailed to give a code reference. There isn't one. Funny that the plugs manufacturer would even supply a second screw. LOL.
You're on track thinking this might be the problem. The color of the screws is supposed to be an indicator of which wire is connected, but they can be removed completely, therefore it's possible to replace them incorrectly. On a standard polarized receptacle, the black connects to the side with the short opening.This would be on the right when the equipment ground is down. To verify this, check and see if there is a connection between the two screws on the same side. there probably is.
It doesn't matter how its wired on a standard outlet as long as the white is going to silver and black to brass.A lot of times shorts happen due to devices that are plugged into the outlets. It is rare for an outlet to short. You can check for a shorted outlet by powering down the circuit by turning off the circiut breaker and then disconnect the wires on the outlet. measure the resistance between the prongs of the outlet or the silver and brass screws. It should measure open.
Actually that is an illegal wiring of a device in today's electrical field. All white (neutral) must not use a device for continuity. Proper wiring would be pigtailed or wire nutted. If the device fails so does the remainder of the circuit. losing the neutral on an appliance can lead to over voltage and fry the electronic power supply. My next question is do you have a short (breaker trips) or an open (no typical voltage across neutral and hot) And the worst offense of wiring is stabbing the wires in the back of the device. Never do this without a pig tail. The biggest reason trailer houses burn down is due to this huge wiring offense. Other problems you can search for: long nails or screws in walls, child puts long items through the back of the outlet. I have seen broken ground lead from plug shoved through back also. Mice chewing on wires to try and squeeze through holes. Smashed wires from GFCI being put in small metal nail on boxes of old construction. Just to name a few. The only time more then one screw should be used on receptacles is when you break the tab between the screws to split the receptacle.
you are correct as for using the upper set as load and other for supply, but that will not cause the short. you will have to look for exposed or chaffed wires, to find the short.

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