I agree with Ed's view... what the heck is a number 12 wire doing in a 50 amp cord service box? It should be at least a size 10.
But then I'm not sure I get why the cord end went into a J box at that point anyway, rather than directly into the SurgeGuard box. Must be some sort of code requirement. Reckon when I get time I'll have to go check out my own configuration.
Dave, aren't we talking a late model Contessa here? Or did I get turned around somewhere in this thread? Not sure what you mean by downsizing from 50 to 30 amp.
A plastic box might not have shorted to ground, but eventually the loose wire would cause problems, and plastic melts pretty fast, as some of those with Belkin power strips in their audio/video overheads can attest.
Joel