16-1610.   Effect of change or error.If a change or error in an electronic record occurs in atransmission between parties to a transaction, the following rules apply:

      (a)   If the parties have agreed to use a security procedure to detect changesor errors and one party has conformed to the procedure, but the other party hasnot, and the nonconforming party would have detected the change or error hadthat party also conformed, the conforming party may avoid the effect of thechanged or erroneous electronic record.

      (b)   In an automated transaction involving an individual, the individual mayavoid the effect of an electronic record that resulted from an error made bythe individual in dealing with the electronic agent of another person if theelectronic agent did not provide an opportunity for the prevention orcorrection of the error and, at the time the individual learns of the error,theindividual:

      (1)   Promptly notifies the other person of the error and that the individualdid not intend to be bound by the electronic record received by the otherperson;

      (2)   takes reasonable steps, including steps that conform to the otherperson's reasonable instruction, to return to the other person or, ifinstructed by the other person, to destroy the consideration received, if any,as a result of the erroneous electronic record; and

      (3)   has not used or received any benefit or value from the consideration, ifany, received from the other person.

      (c)   If neither paragraph (a) nor paragraph (b) applies, the change or errorhas the effect provided by other law, including the law of mistake, and theparties' contract, if any.

      (d)   Subsections (b) and (c) may not be varied by agreement.

      History:   L. 2000, ch. 120, § 10; July 1.