It's always easier to quote the actual law you have a question with, rather than just the number.

LAW 16 - AUTHORIZED AND UNAUTHORIZED INFORMATION

C. Information from Withdrawn Calls and Plays

2. For an offending side, information arising from its own withdrawn action and from withdrawn actions of the non-offending side is unauthorized. A player of an offending side may not choose a call or play that is demonstrably suggested over another by unauthorized information if the other call or play is a logical alternative.

On a given board, North is supposed to be dealer. After everyone looks at their cards, West tells South: "Hurry up, it's your bid". 
South believes West, and opens 1S; which West passes.

Someone then notices that North was the designated dealer, so the TD gets called.

South's 1S opening out of turn is withdrawn, and E/W are the offending side (the side that caused the infraction). 

North is allowed to know that South 'has a 1S opener', but East/West are not. 

Say North opens 1H, and East has an average 2344 15 count with a H stopper. 

If playing natural 1NT overcalls, the East hand demonstrably fits this description - they should make this call.

East is not allowed to know "well, both of my opponents have opening hands and my partner does not - so overcalling 1NT here will lead to a bad result". 

East choosing to pass over 1H is a player of the offending side choosing a call which is demonstrably suggested over another logical alternative by unauthorized information. This is something they may not do.

Basically any time someone has a bidding/play decision in spots like this, they're not allowed to make any inspired choices which happen to work well when the UI is factored in.