If the script has failed... then RESUME command would continue with the next line - INDEED... the next line after the line which failed. The whole point in scripts is so you can let it run - uninteripted - as well as not baby sat. This is a great place to use FileLogOn at the start of a script... so you can investigate the point of the failure.
Scripts have no user input or error handling, so if something fails bad things can happen. The script could be continuing forward from a state where you expect it to work, but instead its issuing E;ALL;SAVE;CLOSE or simply firing off unknown options to one of the looping commands.
If you want more complex handling of error conditions, you will need to switch to something other than scripting.