In the case a change or error should occur in the transmission between the parties of an electronic transaction document, the procedure shall be as follows:
(1) If the parties have agreed to use any security procedure to detect changes or errors, and one of the parties followed the procedure but the other did not, and the latter party would have detected the error if it had acted according the security procedure agreed upon, the party that acted according to the procedure may extricate itself from the effects of the erroneous or altered electronic document.
(2) If an individual person commits an error in an automated transaction, and the electronic agent of the other party does not provide the opportunity to prevent or to correct said error, said person may extricate itself from the effects of the electronic document arising from the error if, at the time of learning of the error, the person:
(a) Immediately notifies the other person of the error and that he/she did not intend to be bound by the electronic document received by the other person;
(b) takes reasonable steps, including those reasonable steps provided by the other party, to return or destroy, if so instructed by the other party, any consideration arising from the erroneous electronic document, and
(c) does not use or derive any benefit from the consideration received from the other party.
(3) If the specific situation in either subsection (1) or subsection (2) of this section does not apply, the change or error shall have the effect provided in any other applicable law or in the contract between the parties, if any.
(4) Subsections (2) and (3) of this section shall not be varied by agreement between the parties.
History —Aug. 8, 2006, No. 148, § 10.