It's probably just an older style transformer, they were built that way, and this one has been painted black.
Much much more likely the transformer would fail with turn-to-turn shorts (causing it to draw excess current and heat up) long before it ever developed a primary-to-secondary short, by which point there would have been significant amount of magic smoke pouring out of the transformer.
Some simple tests you can do:
1) Plug it in and make sure it doesn't draw excessive current all on its own. There will be a bit of current due to magnetizing the transformer and some losses but it shouldn't be anything significant.
2) Check voltage at output.
3) Check voltage from both output terminals to ground. There may be some small voltage due to capacitance between the windings if the transformer isn't screened (a grounded layer between the windings), but this voltage should drop off quickly when adding 100k resistor to ground. In other words, if the isolation is good there should be virtually no current available between the output terminals and ground.
4) Plug in a load and make sure it's able to supply it correctly.
If in doubt about the breaker, replace it. They're cheap enough.
Other than that, make sure the power cord is in good condition and all connections are secure.
I plugged it in and the draw from the wall is about 0.42A, according to my Kill-A-Wall, as I don't have a AC clamp meter. I didn't expect it to be that high. Is that normal?
Checking the voltages using my BK2709B:
- Across the output terminals: 131VAC (voltage at the wall is 124.2VAC)
- Left output terminal and case: 49.6VAC
- Right output terminal and case: 131VAC
I didn't expect such high voltages between the outputs and ground. I assume this is what you meant by the voltage due to the capacitance, but should it be this high? I tried connecting a 100k resistor to the case and measuring from each output terminal to the resistor, but I get the same voltages.
In current mode, I measured 47uA from the left and 17uA from the right, which I guess is what you meant by there's virtually no current.
As for the breaker, I guess it works, as I accidentally tripped in when I forgot to switch back from resistance to volts. The meter still seems ok. Doh!