This is a change. No longer "looks at the face of his cards" but "withdraws his cards from the board."
It is not uncommon for a player to be found holding his cards from the previous board with his correct hand still sitting in the new board.
17D does not cater for numerous calls on the incorrect hand and an artificial adjusted score is then the only option. It may even be that the dummy is displayed before it is realized that anything is amiss.
17D2 Example 1
South opens 1H before he realizes he still has his cards from the previous board. 1H is cancelled.
South takes out the correct hand and makes the call of his choice and the auction proceeds normally from there.
17D2 Example 2
South opens 1H and West overcalls 1S before South realizes he still has his cards from the previous board. 1H is cancelled. South takes out the correct hand.
17D2 Example 3
The auction has proceeded 1H (1S) 1NT before South makes his discovery. The director awards an artificial adjusted score NS Average Minus / EW Average Plus
17D3 When the offender's incorrect cards are from a board he is yet to play, the director must return to monitor that board's auction. Particular problems may stem from things like the offender later being in a position to overcall rather than a position to open the auction.
It is just possible that the non-offenders are yet to play the board on which the offender called holding the wrong hand. Perhaps the cards were from the last board of a previous set that has since moved on to the next table. The non-offenders hold unauthorised information through no fault of their own. Their later auction also requires monitoring.
A procedural penalty may be given in addition to any rectification required. This is more likely to be considered when an artificial adjusted score is required on another board.
17E2 is a specific law for a specific situation. That it may seem to be at odds with more general laws is not relevant.
All three passes are cancelled. East is the offender. South has every right to accept the pass out of rotation and likewise West is entitled to pass. However, North retains the right to participate in the auction following 4S. The passes from East and West are authorized information to NS. Partner's pass and South's pass are unauthorised information to EW.
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