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If C is getting user input, and the user input is invalid, C should just reget the user input. When it has valid input, it should pass that back to B. Otherwise, it should continue to ask the user to fix up the input.
I see your point, but I look at it differently. You want to decouple your functions. Your function that validates the data should do just that: validate the the data. Either the data is validated or it throws an exception which other portions of your program might handle differently. This function's role is not to acquire the data. If you do that, you have a less robust function as you're forcing it to do too much. You could conceivably get around this by passing the function an object that knows how to fetch data, based upon what type of object it is, but I still feel this is doing too much. Consider the following:
+--------------+ | presentation | +--------------+ | +--------------+ | dispatch | +--------------+ | +----------------+ | business rules | +----------------+ | +--------------+ | db api | +--------------+ | +--------------+ | database | +--------------+
That might be the tiers of a multi-tiered system that allows each tier to be developed seperately and replaced, if necessary. Your data validation might be in the "business logic" tier or in your "database API" tier, depending upon your needs. How does something in one of those two tiers refetch the data? They then have to know about the dispatch and presentation layers -- that's not good. As much as possible, different layers should not be overly dependant on one another or changing something in one layer will affect the others and drive up maintenance costs.
Instead, let's say that the validation (and I know this is not a great example) is in the database API layer. It does not know, nor does it care, why the validation fails. It just throws an exception. That exception is caught by the business logic layer and it determines if this is user error (they forgot to select from a menu), or something more serious (the third failed login attempt). At this point, the business logic layer can decide whether or not to log the error, rethrow the error, or do something entirely different. The dispatch layer might catch an error, if thrown, and send an error object to the presentation layer. The presentation layer is not going to want to handle the error the same way. It might simply say "bad username/password combination", while the business logic layer wants to know if someone is brute-forcing a login.
In other words, exceptions allow you to decouple different portions of an application and allow each section to determine how to handle the exception. How this is handled will vary depending upon the layer, but it can help to ensure more robust applications by providing a mechanism by which we are more likely to spot problems and handle them where they should be handled.
Hope that helps :)