ADR has become increasingly popular as an alternative to court
proceedings which are traditionally perceived to be slow and
expensive. On-line ADR overcomes the geographical issues that can
make court proceedings unsuitable for certain cross-border
disputes.
“This is a crucial time for e-commerce,” said Colin Rule, CEO of
the company behind the internet-based service. “Consumers and
businesses are increasingly reluctant to engage in transactions
on-line because there's no way to work out any problems that arise.
On-line dispute resolution is essential to build trust in on-line
marketplaces.”
Any party to a dispute can contact the web site and explain its
position in confidence and state its preference among the choices
of mediation, arbitration, evaluation or negotiation.
OnlineResolution.com then contacts the other party to see if it
is willing to use the site's services and if it shares the first
party's preferred means of resolution. For a fee, OnlineResolution
will then work with both parties with the aim of resolving the
dispute. If agreement is reached, the details are set out in a
document which the parties can then choose to make legally binding
if they wish.