Final answer:
Under the UETA, when a party does not follow security procedures and fails to detect an error, the party who followed the procedures can avoid the effect of the error, making the non-compliant party liable for the error.
Step-by-step explanation:
Under the Uniform Electronic Transactions Act (UETA), when a party fails to follow agreed-upon security procedures and does not detect an error as a consequence, the typical outcome is that the party who did not follow the procedures bears the risk of error. Specifically, if a security procedure is in place and one party to the contract does not follow it, resulting in an inability to detect an error, option (c) generally applies: The party who followed the procedures can avoid the effect of the error. This means that the responsible party may have liabilities for the error and the transaction may not be enforceable against the party who complied with the security procedures.
It's important to note that the contract does not become void or a quasi-contract solely based on these circumstances. The UETA aims to hold parties accountable for the security measures they agree to use. The intent is to support the authenticity and integrity of electronic transactions, and ensure predictability in how errors are handled.