Alternative dispute resolution and the Internet

The movement from ADR to ODR Alternative dispute resolution (ADR) can be deemed to be a key technique in resolving disputes, a structured process with a third party intervention and an escape from court litigation. ADR includes arbitration, mediation/conciliation and negotiation. “Arbitration” is a form of adjudication with a neutral decision-maker – an arbitrator rather than a judge – and its award is normally enforceable as a court judgment. “Mediation” is different from arbitration in that a neutral third party – a mediator – will have no power to adjudicate or impose an award but seeks to help the disputing parties to reach a negotiated agreement. “Negotiation” is the most informal method of ADR where the parties communicate with each other with the aim of making a decision, which is voluntary and non-binding. Sometimes, negotiation can be assisted by a third party chosen by the disputing parties. From a commercial dispute perspective, as ADR aims to resolve disputes in a more friendly way rather than by going to court, it is used for merchants who are making efforts to establish or maintain a long-term business relationship with each other. As ADR is also considered to be more efficient, flexible, confidential and less costly, compared with traditional litigation, it is also useful for consumers who are seeking help for small claims.