This is an extract from dissertation on Online Dispute Resolution (ODR):
Soon after the advent of the Internet as a way of doing business we needed to come up with a way to settle disputes. This has become known as “Online Dispute Resolution” (ODR). ODR is a form of Alternate Dispute Resolution (ADR). Both ODR and ADR or used for resolution of disputes on a form other then the traditional means of the judicial processes (Federal, 2003). Much enthusiasm exists for ODR because of the apparent speed, flexibility and affordability relative to traditional litigation in the courts, plus their ability to alleviate pressure on an already overloaded court system.
There are many Advantages to ODR. The court system is a very expensive and very slow. That is why e- commence is turning to ODR to replace litigation. ADR is cheaper, faster and more predictable than litigation. Instead of both sides paying for armies of lawyers, a single mediator or arbitrator can be used. This is one of the reasons ODR is extreme low cost because the high expensive lawyers are not needed. For a set low cost the natural ODR person will work with both parties to try to resolve the dispute (Onlineresolution). While there may be a dispute, a cost effective and confidential mechanism is much less likely to cause the animosity requisite to motivate parties to permanently terminate business relationships (Global, 2003). Some of the most common ways to handle ODR is though mediation, arbitration, Non-binding dispute resolution techniques (Federal, 2003) Continue reading