46-4-204 - Effect of change or error.
46-4-204. Effect of change or error.
(1) If a change or error in an electronic record occurs in a transmission between parties toa transaction, the following rules apply:
(a) If the parties have agreed to use a security procedure to detect changes or errors andone party has conformed to the procedure, but the other party has not, and the nonconformingparty would have detected the change or error had that party also conformed, the conformingparty may avoid the effect of the changed or erroneous electronic record.
(b) In an automated transaction involving an individual, the individual may avoid theeffect of an electronic record that resulted from an error made by the individual in dealing withthe electronic agent of another person if the electronic agent did not provide an opportunity for theprevention or correction of the error and, at the time the individual learns of the error, theindividual:
(i) promptly notifies the other person of the error and that the individual did not intend tobe bound by the electronic record received by the other person;
(ii) takes reasonable steps, including steps that conform to the other person's reasonableinstructions, to return to the other person or, if instructed by the other person, to destroy theconsideration received, if any, as a result of the erroneous electronic record; and
(iii) has not used or received any benefit or value from the consideration, if any, receivedfrom the other person.
(2) If neither Subsection (1)(a) or (b) applies, the change or error has the effect providedby other law, including the law of mistake, and the parties' contract, if any.
(3) Subsections (1)(b) and (2) may not be varied by agreement.
Enacted by Chapter 74, 2000 General Session