The Effectiveness of Alternative Dispute Resolution Mechanisms in Electronic Commerce Disputes

The heavy reliance of electronic communication tools to conduct businesses across the world has facilitated business transactions and other related aspects of business. An evaluation on the effectiveness of resolving e-commerce disputes by alternative dispute resolution methods (ADR) is dwelled upon in this article. There are many problems associated by relying on the traditional adjudication processes in courts to resolve e-commerce transaction disputes amongst which are; high cost, waste of time, corruption and jurisdictional problems. Disputes arising from e-commerce transaction are most often complicated to be resolved by courts based on this. This article raises questions on the effectiveness of using ADR mechanisms to resolve such disputes and shows its advantages. It also raises questions on the effectiveness of using the normal courts processes. The article is timely because of the heavy reliance nowadays on e-commerce and the frequency of disputes arising from such. The methodology used is qualitative with the use of the doctrinal research methods. The findings of this research is beneficial to the business world, business persons, those charged with conducting ADR and students of business and commercial law. Its findings reveal that processes like arbitration, mediation and online dispute resolution are more effective and accepted by contending parties in resolving their disputes as opposed to litigation. It is therefore recommended that e-disputants should use the opportunities and tools provided under ADR and Online dispute resolution (ODR) to resolve their disputes. That the ODR framework and guidelines should be properly established as a dispute resolution mechanism with worldwide recognition. It is also recommended that reciprocity amongst states should be encouraged in solving e-commerce transactions disputes. ADR methods being more effective in resolving e-commerce disputes, the education community is encouraged to incorporate e-commerce dispute settlement courses in their syllabuses with continuous training on the topic. That countries should encourage reciprocity to easily recognize and enforce ADR and ODR decisions.