§ 554d-112

554D.112 Effect of change or error. If a change or error in an electronic record occurs in a transmission between parties to a transaction, the following rules apply: 1. If the parties have agreed to use a security procedure to detect changes or errors and one 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. 2. In an automated transaction involving an individual, the individual may avoid the effect of an electronic record that resulted from an error made by the individual in dealing with theelectronic agent of another person if the electronic agent did not provide an opportunity forthe prevention or correction of the error and, at the time the individual learns of the error, allof the following apply: a. The individual promptly notifies the other person of the error and that the individual does not intend to be bound by the electronic record received by the other person. b. The individual takes reasonable steps, including steps that conform to the other person’s reasonable

e individual does not intend to be bound by the electronic record received by the other person. b. The individual takes reasonable steps, including steps that conform to the other person’s reasonable instructions, to return to the other person or, if instructed by the otherperson, to destroy the consideration received, if any, as a result of the erroneous electronicrecord. c. The individual has not used or received any benefit or value from the consideration, if any, received from the other person. 3. If subsection 1 or 2 does not apply, the change or error has the effect provided by other law, including the law of mistake, and the parties’ contract, if any. 4. In a consumer transaction, any substantive law limiting a consumer’s liability shall apply to an electronic transaction. 5. Subsections 2, 3, and 4 shall not be varied by agreement of the parties.2000 Acts, ch 1189, §12 Sat Dec 23 11:03:58 2023 Iowa Code 2024, Section 554D.112 (17, 0)