I often do inspections on older houses that have been remodeled. This one turned out to be a pretty good one. There were a few things, there always are it seems. But this one thing stood out.
This very new disposal was installed and they used the old cable to do so. While that isn't necessarily a problem, two things needed to be done.
First, the cable should have been trimmed a bit to utilize new, smooth copper and get rid of the frayed material.
And, second, they should have used a connector clamp and secured the cable to the drain nearby.
Connector clamps are very important. Every electrical connection should have some sort of clamp.
Guaranteed, one came in the kit when this disposal was purchased. It would look much like this. 
Maybe they didn't think it was important, or didn't know, or actually found it in the box when they were finished and wondered what it was! Who knows? It is very easy to install.
Not surprisingly, there is a purpose in putting one in. They do two things - they secure the cable into the box so it cannot accidentally be pulled away, and they fill the hole so no sparks can escape. An electrical spark is about 2,500 degrees Fahrenheit and can easily cause a fire. The clamp is machined to perfectly pop into the hole into which the cable would go. It tightens down real easily, and it makes everything very secure.
My recommendation: When you see a remodel, one way to check to see how professionally it was done is to reach under the disposal and feel for a very secure clamp. You won't get shocked if you touch it. It is little stuff like this that makes a job top rate or otherwise.
Wisdom looks for the small and simple. And a professional pays attention to it!
Jay Markanich Real Estate Inspections, LLC 
Based in Bristow, serving all of Northern Virginia.
Office (703) 330-6388 Cell (703) 585-7560
Thanks for the tip and the photo. It truly is worth a thousand words.
You are very welcome, Jennifer. So, reach under there and feel around!
Jay,
I see so many jobs where the contractor didn't bother to use electrical connectors. I don't understand what they think they're saving. All they accomplish is to make me look harder.
Thanks for the excellent explanation on this. It is very often the case that the attention to details with the inexpensive parts can mean the difference between peace-of-mind and living with a hidden error that could be a ticking time-bomb! John
Suesan - and everywhere! Hot water heaters, ovens, dryer outlets, disposals! It goes on and on...
Alexander - the little things make all the difference. But if a contractor is concerned with the small details, they will be concerned with the larger ones.
My favorite saying is"the devil is in the details". This is one example
Susan - devilish work, to be sure. Actually not connecting that cable properly is dangerous.
What about the wire itself? I can't quite tell from the picture, but it looks like unprotected NM wire to me.
Reuben - it is a 55 year old house with some 55 year old wiring. This is the old wrapped wiring, with paper filler. You can see one of the cables inside. If it was to be trimmed off to new, unfrayed material I think it would be fine with a clamp.
Jay this is an awesome quote. Yours?
"Wisdom looks for the small and simple. And a professional pays attention to it!"
Si, mi amigo...
But you can use it if you want. Fees not charged.