Electronic commerce is important, and perhaps, inevitable. Thus, consideration of the legal implications of the growth and development of electronic commerce is essential. However, the lack of suitable dispute resolution mechanisms in cyberspace will constitute a serious obstacle to the further development of electronic commerce. Bearing this in mind, this article argues that when Alternative Dispute Resolution (“ADR”), particularly arbitration and mediation, moves to cyberspace, the form of online alternative dispute resolution (“OADR”) can maximise the growth of e–commerce. Having said that, in order to be consistent with fair process rights, OADR process must guarantee the non–repudiation and integrity of the information transferred during the proceedings in order to ensure that the contents of a record have not been altered, that a file or program has been entirely transmitted, and that data really is the data that it is claimed to be. This article concludes that it is important to provide electronic authentication which guarantees the validity of virtual agreements, that is, not only the contractual clauses defining recourse to OADR, but also the contracts in which the parties decide to submit an existing dispute to OADR.
Journal of International Arbitration