ONLINE ARBITRATION

PROGRAM
COMPANIES THAT OFFER ONLINE ARBITRATION PROGRAMS:
1. Resolution Forum, Inc. (RFI)- is a non-profit organization associated with the Center for Legal
Responsibility at South Texas College of Law. It offers arbitration services through its CAN-WIN
conferencing system and they are using standard browser software and RFI password, then parties to a
dispute access an online conference room. RFI also offers mediation process. When multiple parties
are involved, private communications and breakout sessions are possible via private messaging
facilities.
2. Virtual Magistrate Project (VMAG)- is affiliated with the American Arbitration Association, Chicago-
Kent College of Law, Cyberspace Law Institute, National Center for Automated Information
Research, and other organizations. VMAG offers arbitration for disputes involving users of online
systems; victims of wrongful messages, postings, and files; and system operators subject to
complaints or similar demands. VMAG attempts to resolve a dispute within 72 hours.
 TECHNOLOGY SOPHISTICATED
ADR WITH ANALYTICAL TOOLS
Several ODR providers offer an even more sophisticated option. In addition to providing multi-modally
sophisticated communication platforms, these providers offer accessory tools designed to assist disputant teams
assessing their interests and fashioning appropriate proposals
• This ADR offers providers offers face-to-face teleconferencing, and online exchange or a combination of
communication formats.
• Using a facilitator, the parties communicate to generate a list of the terms that have to be addressed such as price,
delivery date, and so forth.
• Privately, each side identifies a range of expectations for each term, an optimal resolution term, and optionally a
function or graph that represents how satisfied they would be along the range of potential outcomes for the term.
• They generate numbers that correspond to how important each issue to them.
• Parties issue proposals
• Software can generate possible concessions for each disputant and parties can register secret proposals on terms.
• Once the computer verifies an agreement on an individual term, they are added to a tentative settlement.
• The software uses the confidential information regarding interests and weights provided by
each team to generate alternative proposals that improve both disputants‘ expressed interests
as much as possible without reducing anyone’s income.
 BLIND-BIDDING SITES
• Blind- bidding ODR is completely automated.
• No human intermediator is involved.
• The service tends to be very rapid and inexpensive.
• The process may be either binding or advisory, as determined by the disputants.
• Each disputant’s negotiating team places a bid, which is kept secret from the other
disputant’s team.
• If the bids are within a prescribed distance from each other, the computer computes a
settlement, usually at the midpoint of the two bids.
• If the respondent’s offer exceeds the claimant’s demand, the claim usually is settled at the
amount of the offer.
 SPECIAL CONSIDERATIONS
ODR raises interesting, and difficult issues, as well as opportunities for conflict diagnosticians
and legal professionals. A number of psychological considerations make the ODR process
different from the face-to-face process, and these differences are examined in light of the
principles of conflict diagnosis.

In addition, ODR and cyber disputes raise tough legal issues that are only now being faced by
governments and legal policy makers.
 ADVANTAGES OF USING THE
INTERNET TO RESOLVE DISPUTES
• It enables communication to take place at the leisure of the participants and between
participants in disparate time zones.
• It may also be possible to facilitate communication between people who would otherwise be
unable to communicate.
• The use of computers makes ODR faster, more convenient, and more efficient.
• The results are easily publicized.
• The cost is low compared to the higher expense of litigation.
• ODR participants can consider the statements of others in repose and contemplation.
• An ODR participant who receives communication from another involved party can carefully
review what has been said and consider the possible meanings and implications at his
leisure, seeking further clarification if it is needed.
• If the participant is a knowledgeable conflict diagnostician, he can avoid overreacting to the
other participant in the heat of the moment and can gain time to apply conflict diagnosis to
the ongoing interaction.
• When the ODR participant does not reply, he can write several drafts of a contemplated
response and review to make sure that it conveys the content he intends to communicate.
• Can help equalize power imbalances based on the intimidation of physical proximity.
• The anonymity of the internet can mean that disputants may never know the race, gender,
age, or physical appearance of those they are dealing with.
• Its flexibility means it allows participation by all interested stakeholders as long as they have
personal computers and access to the internet.
 BENEFITS OF CYBER MEDIATION
• Cost savings, convenient and avoidance of jurisdictional issues.
• Parties may be able to to save a lot of money in cyber mediation since hiring a lawyer is
often unnecessary.
• The disputants do not have to travel lengthy distances to negotiate.
• Disputants can proceed to negotiate the settlement of disputes expeditiously instead of
waiting lengthy periods to go to trial.
• Parties are able to participate in the negotiation when they are ready and at convenient times
and places for meetings.
• The mediator can meet with either of them or both of the parties privately, without affecting
the flow of the mediation.
• Asynchronous internet communications have the advantage of of being the best
communications by the fact of its capability of being edited in contrast to the first and often
impulsive responses that take place in real time face-to-face mediation discussions.
• Jurisdictional issues can be avoided altogether because disputants can bind themselves to
resolution through an agreement.
 DRAWBACKS USING THE
INTERNET TO RESOLVE DISPUTES
• The lack of non-verbal cues can block effective communication and can inhibit helpers
from assessing the emotional status of clients and thus adds to the ambiguity of
communication.
• Asynchronous communication formats heighten the problem of misattribution of motive.
• The lack of human face and disputants may not be able to see their counterpart’s emotional
reactions or to hear their voice inflections.
• Disputants may not experience the same emotional closure and reconciliation when
settlement occurs, and the element of psychological ownership of the outcome may be
compromised.
• Disputants are likely to fill in the missing information with their suspicions about the other‘s
evil motives.
• It is not yet widely accepted.
• Online forums are not directly enforceable.
• Software for smoother and more visual interaction than presently available needs to be
developed.
• Efficiency, speed, and low cost could be ab obstacle to a party who wants to wear out his
opponent in a long, expensive and contentious battle.
• Jurisdictional issues.
 HURDLES OF CYBER MEDIATION
• It has limited capability, impersonality and confidentiality.
• It imposes an electronic distance on the parties.
• Cyber mediation loses the dynamics of traditional mediation.
• Lack of an established relationship or personal connection.
• Protection of confidential material is also an issue as this could enable a party to print out
and distribute email communications easily and without the knowledge of the other party.