Originally posted by tunk
One last question, If the circuit that was cut was properly grounded would a fire or other disaster still occur if the live wire was cut and grounded to a metal part of the car?
These are somewhat disconnected questions.
The circuit that was cut is now completely divorced from its normal path to ground, so 'properly grounded' does not apply.
If the live cut wire finds a NEW path to ground, it will quickly draw more current than the fuse will allow, and the fuse will blow. No fire potential in this scenario.