Michigan Laws 450.840 – Change or error in transmission of electronic record
Current as of: 2023 | Check for updates
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If a change or error in an electronic record occurs in a transmission between parties to a transaction, the following rules apply:
(a) If the parties have agreed to use a security procedure to detect changes or errors and 1 party has conformed to the procedure, but the other party has not, and the nonconforming party would have detected the change or error had that party also conformed, the conforming party may void the effect of the changed or erroneous electronic record.
Terms Used In Michigan Laws 450.840
- Agreement: means the bargain of the parties in fact, as found in their language or inferred from other circumstances and from rules, regulations, and procedures given the effect of agreements under laws otherwise applicable to a particular transaction. See Michigan Laws 450.832
- Automated transaction: means a transaction conducted or performed, in whole or in part, by electronic means or electronic records, in which the acts or records of 1 or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract, or fulfilling an obligation required by the transaction. See Michigan Laws 450.832
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Michigan Laws 450.832
- Electronic agent: means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual. See Michigan Laws 450.832
- Electronic record: means a record created, generated, sent, communicated, received, or stored by electronic means. See Michigan Laws 450.832
- Person: means an individual, corporation, partnership, limited liability company, association, governmental entity, or any other legal entity. See Michigan Laws 450.832
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Michigan Laws 450.832
- Security procedure: means a procedure employed for the purpose of verifying that an electronic signature, record, or performance is that of a specific person or for detecting changes or errors in the information in an electronic record. See Michigan Laws 450.832
- Transaction: means an action or set of actions occurring between 2 or more persons relating to the conduct of business, commercial, or governmental affairs. See Michigan Laws 450.832
(b) In an automated transaction involving an individual, the individual may void the effect of an electronic record that resulted from an error made by the individual in dealing with the electronic agent of another person if the electronic agent did not provide for the prevention or correction of the error and, at the time the individual learns of the error, all of the following apply:
(i) The individual promptly notified the other person of the error and that the individual did not intend to be bound by the electronic record received by the other person.
(ii) The individual takes reasonable steps to return to the other person or to destroy any consideration received as a result of the erroneous electronic record.
(iii) The individual has not used or received any benefit or value from any consideration received from the other person.
(c) If neither subdivision (a) nor (b) applies, the error has the same effect as provided by law.
(d) Subdivisions (b) and (c) cannot be varied by agreement.