ApplicationController 

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class ApplicationController < ActionController::Base

  # Include the library needed for authentication functionality.
  include AuthenticationSystem

AuthenticationSystem 

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module AuthenticationSystem

  class NotAuthorized < RuntimeError; end

  rescue_from AuthenticationSystem::NotAuthorized, :with => manage_permission_denied

  def manage_permission_denied(exception)
  ...

Error 

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 NameError

undefined local variable or method `manage_permission_denied' for AuthenticationSystem:Module