online arbitration international experiences and lessons for vietnam

Online arbitration is an ideal dispute resolution mechanism to solve disputes arising from B2B transactions for various reasons, among others, because it allows parties to select a speci

FOREIGN TRADE UNIVERSITY

MASTER THESIS

ONLINE ARBITRATION: INTERNATIONAL EXPERIENCES AND LESSONS FOR VIETNAM

Major: International Trade Policy and Law

NGUYEN BAO HOA

Ha Noi - 2020

FOREIGN TRADE UNIVERSITY

Student: Nguyen Bao Hoa

SUPERVISOR: Assoc Prof Nguyen Minh Hang

Ha Noi - 2020

DECLARATION

I confirm that that this Master Thesis has been written solely by the undersigned and contains the work of no other person or people except where explicitly identified to the contrary I also state that said Master thesis has not been submitted elsewhere for the fulfillment of any other qualification It was written with the thorough guidance of my supervisor - Assoc Prof Nguyen Minh Hang

Hanoi, … 18th 2020

Author

Nguyen Bao Hoa

ACKNOWLEDGEMENT

The dissertation has been completed with the great guidance of Acc Prof Nguyen Minh Hang I would like to express my sincere thanks for her patience and massive help with reading the whole of the thesis and making valuable comments for

my research

By this occasion, I am much grateful to the Department of Graduate Studies and Foreign Trade University - who have always create most favorable conditions for MITPL6 students in completing our study Thank you so much for their generosity and I owe a debt of gratitude to all helpers

ABSTRACT

Alternative Dispute Resolutions are mechanisms designed to solve disputes outside the scope of traditional jurisdiction New technologies may be incorporated to ADRs in order to facilitate the procedure and make it more efficient and less expensive manner In this thesis I will metion about the specific case of arbitration procedures that are conducted exclusively through electronic means of communication

Online arbitration is an ideal dispute resolution mechanism to solve disputes arising from B2B transactions for various reasons, among others, because it allows parties to select a specialist they both trust to solve the controversy with an award that

is binding for both parties, but that respect the minimum necessary formalities of the procedure Additionally, the use of electronic means of communication allows the procedure to be conducted in a faster pace, from any location, and allowing parties to get access to the documents of the procedure at any place at any time

There is currently no legal framework designed specifically for the conduction

of online arbitration procedures; therefore, the rules for traditional commercial arbitration should be used Even though the rules of traditional arbitration allow the existence of the online version, due to its special characteristics, online arbitration requires a set of rules designed especially for it

Online arbitration requires a legal framework that regulates the use of electronic means of communication in the procedure, the way in which notifications shall be performed and acknowledgement of receipt granted The legal framework should also prescrible the obligation of the parties to take the necessary measures to ensure that the security and confidentiality of all the information exchanged in the procedure Finally, parties should be able to select the extra judicial mechanisms that they deem convenient for enforcing the award in an easy and fast manner

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENT ii

ABSTRACT iii

TABLE OF CONTENTS iv

LIST OF ABBREVIATIONS vi

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF ARBITRATION AND ONLINE ARBITRATION 10

1.1 Arbitration and its advantages 10

1.1.1 Arbitration 10

1.1.2 Advantages of Arbitration in comparison with traditional jurisdiction 11

1.2 Online dispute resolution 13

1.2.1 Concept of online dispute resolution 13

1.2.2 Characteristics of online dispute resolution 15

1.3 Online arbitration 17

1.3.1 Concept of online arbitration 17

1.3.2 Structure and legal basis of electronic arbitration 20

1.3.3 Advantages and disadvantages of online arbitration 20

1.3.4 Block-chain regulation and Machine Made Justice in Online Arbitration 23

1.3.5 Applicable law to online arbitration 25

CHAPTER 2: APPLICATION OF ONLINE ARBITRATION IN THE WORLD AND IN VIETNAM 32

2.1 International experience of online arbitration in the world 33

2.1.1 Experience of online arbitration in EU 33

2.1.2 Experience of online arbitration in Iran 35

2.1.3 Experience of online arbitration in US 36

2.1.4 Experience of online arbitration in Singapore 40

2.1.5 Experience of online arbitration in Indonesia 41

2.2 Online arbitration in Vietnam 43

2.2.1 Legal provisions on online dispute resolution and online arbitration 43 2.2.2 The application of online arbitration in Vietnam 50

2.2.3 Opportunities of applying online arbitration in Vietnam 56

2.2.4 Difficulties when applying online arbitration in Vietnam 59

CHAPTER 3: RECOMMENDATIONS AND SUGGESTIONS 62

3.1 Recommendations for the state of Vietnam 62

3.2 Recommendationsfor e-commerce businesses 67

3.3 Recommendations for online arbitration providers 69

3.4 Recommendations for IT and telecommunications infrastructure vendors 70

3.5 Recommendations for consumers 72

3.6 General trend around the World after pandemic 73

3.6.1 Trends after Corona Virus Pandemic 73

3.6.2 Legal framework for digital transformation for legal proceedings in Vietnam 75

CONCLUSION 77

REFERENCE 81

LIST OF ABBREVIATIONS

No Acronym Explanation

1 SIAC Singapore International Arbitration Center

2 LCC London Commercial Court

3 DIFCC The Courts of the Dubai International Financial

Centre

4 UAE United Arab Emirates

5 CISG United Nations Convention on Contracts forthe

International Sale of Goods (Vienna, 1980)

6 LCIA The London Court of International Arbitration

7 ODR Online Dispute Resolution

8 ADR Alternative Dispute Resolution

9 QMUL Queen Mary University of London

10 SIFoCC Standing International Forum of Commercial

Courts

11 VIAC Vietnam International Arbitration Center

12 VMC Vietnam Mediation Center

13 UNCITRAL The United Nations Commission on International

INTRODUCTION

1 Rationale

International trade continues to increase in online volume, resulting in a sharp increase in disputes arising from such online commerce Accordingly, arbitration is the preferred method for resolving international trade disputes, in which online arbitration is the standard of alternative dispute resolution in the near future, especially in the field of e-commerce When the court could not afford to resolve the dispute, online arbitration has become a legal method of dispute resolution everywhere in the world with different levels of scope and application For online arbitration to be accepted, it is necessary to determine which basic rules will govern the choice of law, jurisdiction and enforcement of the award Online arbitration can inherit the characteristics of traditional arbitration, can also shorten the time of making judgments, save time and cost for all parties, apply modern technology to support aid dispute process In addition, online arbitration is particularly suitable for e-commerce, when the number of disputes arising is becoming more and more complicated in large numbers along with the rapid growth of payment and e-commerce

The main content of the thesis will review the research and development of online arbitration in the world, study and refer to the experience of developing online arbitration of developed countries in the world and developing countries Like Vietnam, through which, the writer made recommendations to effectively apply online arbitration in Vietnam

found that the problem with online arbitration is difficult in selecting the appropriate law to apply to the dispute Arbitrators may only need to apply applicable legal rules

to determine the law governing the value of the dispute, but it is often unclear what choice of laws rules will govern a particular dispute when Legal systems cannot be clearly defined when applied in Cyberspace Frank (1997) also argues that contractual obligations are the only effective means of contracting parties with online courts Therefore, the incorporation of online terms must be included in the user registration agreements Accordingly, the use of online systems to resolve binding disputes will be less restrictive

Eddie (2000) argues that in the context of national legal systems related to censorship technology, there have been calls for adjustment of international commercial arbitration to consider the issue of online arbitration Accordingly, the parties to the Internet dispute will be comfortable, resolving their disputes through the same means that they are doing business Online arbitration also provides an incentive for the parties to agree on a dispute settlement system and the parties will be able to bypass formal legal institutions and maximize government intervention Eddie also discusses a number of special and very important issues that will need to

be addressed to ensure the proper and legal functioning of online arbitration including: time frames applicable to online arbitration; rights of the parties to the dispute regarding access to the material; requests concerning communication between the parties and the arbitrator; procedure to cater for authenticated or authoritative situations; and instructions on the appearance and enforcement of online arbitration.Meanwhile, Llewellyn et al (2002) found that large costs, jurisdiction and transnational lawsuits were not feasible to perform in court,not provide an equal playing field for online arbitration in disputes between merchants although at the time this system may not exist or be inadequate for disputes between consumers and traders

Eddie's study (2000) also suggested a mechanism for online arbitration to work in practice, such as The World Intellectual Property Organization (WIPO) to resolve intellectual property disputes Accordingly, online arbitration begins by accessing procedures through the website and then electronically submitting a request at the WIPO Arbitration Distribution Center All claims about claims, facts and legal arguments, documentary evidence need to be submitted electronically and online The arbitration center determines the location of the arbitrator and the language used After the end of the required requirements, a final award is given and

no appeal is given Accordingly, the steps mentioned above for the strict time frames are specified in the WIPO rules.The parties contact via digital means and send requests by completing the corresponding electronic and online forms via secure channels, and receive automatic notifications, payment of electronic fees, databases

of document storage and storage, and secure channels are all via Internet-based systems

Eddie (2000) also provides other examples of an online Arbitration that clearly shows that organizations have realized the potential advantages and predicted the need to resolve disputes by online arbitration such as Cybertribunal is a project of the Faculty of Law in University.Montreal; The Office of Online Inspection is provided

by the Massachusetts Center for Information Technology and Dispute Resolution at the University of Massachusetts providing mediation services primarily to other parties; The Virtual Judge Project is a joint venture of the American Arbitration Association and Villanova LawSchool related to trademark infringement, fraud disputes

Tiffany (2000) in her study confirmed that the best regulation of trade on the Internet can be done by combining current international law while drafting new flexible laws to supplement and clarifyapplicable laws And the same combination can be applied to online arbitration to create some law certainty.In order to conduct

arbitration online, Tiffany (2000) listed six arbitration tribunals that the arbitrator can submit including the American Arbitration Association (AAA); International Chamber of Commerce (ICC); London Court of International Arbitration (LCIA); Stockholm Chamber of Commerce (SCC); International Center for Settlement of Investment Disputes (ICSID); and the United Nations Conference on International Trade Law (UNCITRAL).

Tiffany et al (2000) also argued that the statutory arbitration rules of most countries will maintain the decision of the judgment officer to be binding, except for the discovery of fraud or arbitration such as evidence of corruption among arbitrators; the referee has exceeded their powers.For online arbitrators, due to their independent geography and number of participants, the parties involved may include defendants, petitioner and arbitrators and may be located in many other geographical locations (usually 6 or more) Up to six national courts may have relevant jurisdiction for review purposes Accordingly, the location of the arbitrator is determined by the geographical location of the server If the parties disagree with the position of the arbitrator, the arbitral tribunal may determine the appropriate location

Another issue that was also raised in the study was that although the parties agreed to the terms of the online arbitration in the contract, it was impossible to determine whether the local court would help or hinder the arbitration Referees and many local rules will have to follow Therefore, online arbitration is a useful alternative dispute resolution but still needs to create new or amend the old arbitration rules

Regarding transparency in online arbitration, Bashar (2009) states that unless the result of online arbitration is published, system users cannot find out what the law

is applied to However, the owner of a trademark or a trader will have many dispute resolution cases and may gain unwarranted advantages Thus, in a well-defined, highly developed, legal and commercial environment, such as e-commerce, online

referees face the challenge of establishing certainty as mentioned This can be done

by requiring the decisions of the online arbitrator to be provided publicly by the ODR provider

Karen et al (2002) have found that the more difficult issue is whether consumers should refuse online arbitration in the process of contract formation, which depends on the transparency of the arbitration process Online arbitration only becomes a method of resolving international disputes between businesses and consumers when the online arbitration process must be an open process, allowing consumers to participate in online commerce At the same time, it is necessary to limit the occurrence that suppliers often conduct secret procedures Karen's research suggests that the key means to achieve this allows consumers to observe the entire process and increase the transparency of the system Research by Karen et al (2002) also shows that courtroom doors in the United States are open to anyone interested in observing the process Published decisions represent the solidity of the US legal system while many other countries do not publish decisions

The European Commission considers transparency must be included in any out-of-court dispute resolution process, including significant online Accordingly, decisions published from online arbitration will also show that this process is an attempt to fairly resolve international online disputes Online arbitration providers should provide arbitral awards and relevant statistical information Publicizing decisions will not be too difficult because the online proceedings will automatically create a record; Disputes between consumers and businesses are quite similar to those between businesses.1 In addition, some countries have acknowledged the exception appropriately to keeping confidential decisions not only for online arbitration but also for offline arbitration between businesses

1 Karen Stewart; Joseph Matthews, Online Arbitration ofCross-Border, Business to Consumer Disputes, 56 U.Miami L Rev 1111 (2002)

Thuy (2016) also investigated the online trade dispute resolution with the proposal of using ODR in which online arbitration This study focuses on the legal issues that hinder the application of ODR in general, in Vietnam The author also said that effective settlement of online trade disputes is one of the most important factorsto build trust and promote e-commerce in Vietnam

Bao and Hanh (2017) in his research said that ODR including online arbitration is a trend applied by many countries around the world This study has shown the advantages and disadvantages when applying the above form and confirms that online arbitration is one of the ODR forms that can be successfully applied in Vietnam

In conclusion, there have been many topics about online arbitration in the world, there are some topics about online arbitration in Vietnam, but there have not been any studies on online arbitration particularly and the experience of other countries to apply in Vietnam Referring to the experience of other countries, especially those that have successfully applied online arbitration with condition and, the level similar to Vietnam is extremely necessary because it will help Vietnam save

a lot of deploy time and cost At the same time, the study also answers questions about solutions for the transparency and fairness of e-commerce booming in Vietnam today

3 Researchquestions and objectives

The thesis will address the following research questions:

(1) The basic principle and caracteristics of online arbitration?

(2) Countries around the world including developed and developing countries such as Vietnam, has applied online arbitration? What experiences are drawn for Vietnam?

(2) Will Vietnam take advantage of strengths and overcome weaknesses in

developing online arbitration to widely apply this new type of dispute resolution, especially in the field of e-commerce? What solutions to be implemented for the state, the technology providers, technology infrastructure and consumers?

4 Scope of research

In this thesis, the author wants to limit its content to a scope of research, focusing on online arbitration rather than expanding and comparing different types of ODR in order to find the appropriate form for Vietnam The thesis focuses on the study of online arbitration in developed countries combined with the advances of science and technology Through these, the thesis proposes a number of recommendations for stakeholders in Vietnam to successfully apply online arbitration, including the very important role of state agencies and arbitration services providers in Vietnam

As for geographical scope, the study shall cover the theories of online arbitration and application in the world (such as US, Singapore, Iran, Indonesia and EU) and demonstrate how they are applied in Vietnam

As for time scope, the research shall examine on the development of online arbitration from 2000 up to now

5 Methodologies

This study was conducted by the following methods First, the method of examining the theory and the study of components related to online arbitration and the broader picture is online dispute resolution (ODR), especially in the context of the new trend in the world with the strong rise of information technology and the application of artificial intelligence The thesis is mainly based on secondary legal data from studies related to the application of laws in countries around the world and

to the reality in Vietnam Secondly, the conceptual analysis method is also used to analyze legal rules on a practical basis and the context of information technology

infrastructure changes very quickly and points out the strengths and weaknesses of online arbitration as well as advantages and disadvantages when applied in Vietnam

In the legal field, especially in online disputes, the opinion of commercial arbitrators directly handling disputes is very valuable for reference and consideration

to clarify the issue under study In addition, statistical and selective method (list and select the form of solution similar to the object to be studied) is also applied when this study provides a set of experiences and solutions that countries have applied in developing online and selecting appropriate solutionsto effectively apply online arbitration in Vietnam

6 Structure of thethesis

The thesis will focus on analyzing the benefits of online arbitration and looking for effective application of online arbitration and overcoming the weaknesses

of this method in countries around the world In addition to the introduction focused

on reviewing the history of development and the theoretical studies of online arbitration and conclusions, the content of the thesis will be divided into three chapters

Chapter 1 will be dedicated to examining the definition and characterization of component related to online dispute resolution, electronic contracts, and codes regarding online arbitration globally, regionally and Countries At the same time this chapter goes into depth analysis of the strengths and weaknesses of online arbitration

Chapter 2 presents key online development experiences in developed countries around the world such as the US, Europe, South Korea and regional countries with Vietnam such as Singapore and Indonesia This chapter also focuses

on a thorough analysis of the current Vietnamese laws relating to online arbitration in order to find out what needs improvement and what content can be used to apply in practical online arbitration In addition, the reality of online arbitration activities in

Vietnam is also presented with the advantages, difficulties and challenges posed

Chapter 3 sets out solutions and recommendations for the state, IT infrastructure development units, online arbitration service providers, e-commerce companies and consumers in order to promote the development of online arbitration, transparent efficiency of online dispute activities, contributing to promoting the development of e-commerce in Vietnam

CHAPTER 1: OVERVIEW OF ARBITRATION AND ONLINE

ARBITRATION

1.1 Arbitration and its advantages

This chapter will go through the main characteristics of arbitration and the advantages that it reprents Afterwards, we will go through the differences between the traditional and the online arbitration procedure

The content about the main characteristics of the online arbitration procedure and the current legal framework, which regulates traditional arbitration, is applicable for the online procedure or if they are incompatible, in which case a new set of rules will be required

1.1.1 Arbitration

Arbitration is “a method of dispute resolution involving one more or more neutral third parties who are chosen by or agreed to by the disputing parties, and whose decision is binding”4

Arbitration is one of many Alternative dispute resolutions (ADRs) that exist as

an alternative to traditional jurisdiction It has certain characteristics that differentiate

it from the others, for instance, its procedural rules are more formal, as parties have deadlines for the presentation of their arguments and evidence Unlike in negotiation

or mediation, a party that has agreed upon arbitration cannot walk out of the procedure Arbitration is intended to provide a final resolution for the dispute; it is not merely intended to mediation between parties or to conciliate them Actually, the resolution of the arbitrations (the award) is binding and enforcable

The above mentioned characteristics give arbitration considerable relevance among the available ADRs This does not mean that arbitration will always be the

4 Garner, Bryan A (editor-in-chief), Black’s Law Dictionary, West Group, 1996, p.40

ideal mean to slove a dispute Each ADR has its own advantages and drawbacks Therefore, in each case, parties should analyze which is the most convenient way to solve their particular dispute

1.1.2 Advantages of Arbitration in comparison with traditional jurisdiction

Arbitration comes equipped with certain characteristics that make it an attractive option for dispute resolutions Among others, arbitration has the following advantages:

(i) Election of the arbitration: Arbitration allows parties to choose the arbitrator

or panel of arbitrators who will solve the dispute

The possibility of choosing the arbitrators becomes useful in disputes involving technical or special knowledge For example, in e-commerce, in disputes involving the sale of software, parties may want to select an arbitrator who is an expert on the subject

The arbitrator’s specialized knowledge can help solve the dispute faster an in a more economical manner, while a traditional judge may not have sufficient knowledge to solve the dispute, or would need the opinion or advice of an expert, which may make the judicial procedure longer and expensive Furthermore, parties can create an arbitral panel composed of experts from different fields, e.g., a technical expert and a lawyer

(ii) Internationalization: Parties can select any location in the world for the arbitral

proceedings, this may be especially helpful in international disputes in which the parties involved reside in different countries

(iii) Neutrality and equality: Parties are able to select an arbitration with no

inclination towards one or the other, so that the neutrality and equality of the procedure is guaranteed

This characteristic is helpful in disputes involving parties with different nationalities In this case, they may deem it convenient to appoint an impartial arbitrator instead of going before the national court of one of the parties, whose impartiality may be doubtful.7

(iv) Flexibility: Arbitration allows flexibility in both procedure and time, provided

that minimum formalities required to guaranty the due process of law are observed Parties in arbitration will not be tied to the formal mechanisms of a normal court proceeding8, as an arbitral procedure can be tailored for each case

(v) Confidentiality: Arbitration is generally considered to be a confidential

procedure Arbitration agreements normally imply confidentiality obligations

in connection with all the information exchanges in the arbitral procedure9 On the other hand, judicial procedures are public and the information related to it may be disclosed

The confidentiality of the arbitral proceedings may stimulate e-business transactions if they know that in the event of a dispute, it will remain confidential Parties may want to keep the information regarding the arbitration confidential, as sensitive information may be exchanged in the process Additionally, in some cases, if the existence of a dispute is disclosed

to the public, a company may face financial or reputational damages

However, parties may allow, to a certain extent, the publicity of an arbitral procedure For instance, in the Netherlands, with the prior authorization of the parties, awards are published without indicating the names of the parties

7 T Schultz, G Kaufmann-Kohler, D Langer, & V.Bonet, Online Dispute Resolution: The State of the Art and the Issues, E-Com Research Project of the University of Geneva, Geneva, 2001, http://www

involved in the Journal of Arbitration

1.2 Online dispute resolution

1.2.1 Concept of online dispute resolution

Living in the age of technology, it is happened every minute that people located in different places and even with different time-zone make contracts with each other only by some clicks through their Internet connection This kind of contract naturally becomes the root for the development of Online Dispute Resolution The Online Dispute Resolution (hereinafter “ODR”) is often referred as a form of Arbitration Dispute Resolution which takes advantage of the speed and convenience of the Internet Since the beginning of 2000s, these ODR systems have been practiced by several justice systems and deliver a range of useful decisions in meditation, arbitration and judicial proceedings.10 The ODR concepts are believe to affect the perspective of people to justice and even change the ordinary thoughts and procedure experience naturally, in both public and private justice system, unpredictably

ODR systems are built on the platform of Internet base which allow parties to perform the whole process of dispute resolution, from administrative tasks, for

10See Ethan Katsh, ODR: A Look at History, in ONLINE DISPUTE RESOLUTION: THEORY AND

PRACTICE 1, 3 (Mohamed S Abdel Wahab et al, eds.) (2012)

instance, e-filing to the final decision or determination, all throughout a convenient online environment.11Therefore, technology keeps a critial role in the development of this dispute resolution system, besides human in order to aid or enhance their work ODR could be considered as one of the most useful, maybe in some circumstances, it could be treated as the only option in order to enhance the redress of consumer grievances, to strengthen their trust in such a competitive market,and to promote the sustainable growth of some type of field, such as e-commerce business field

It could be observed that ODR systems are increasingly institutionalized Several international organizations are allocating their resources to enhance the use

of ODR for the purpose of solving these types of issues A number of legal systems in North America and Europe have launched their judicial ODR systems.12 The European Commission also published a Directive on Consumer ADR and a Regulation on Consumer ODR establishing an ODR Platform Not only European Union but also the United Nations promoted the institution of cross-border ODR systems for commercial disputes.13

For its potential growth and impact, ODR is considered a “disruptive legal technology”14 that is possibly involve in the transformation of feature and future

11 There are different definitions of ODR in the literature See Introduction, in ONLINE DISPUTE

RESOLUTION: THEORY AND PRACTICE 1, 3 (Mohamed S Abdel Wahab et al, eds.) (2012)

12 See, e.g., S.B.C., CHAPTER 25, CIv RESOL TRIBUNAL ACT, 25 S.B.C (2012);

http://www.bclaws.ca/civix/document/id/complete/statreg/12025_01 (instituting ODR for small claims, traffic

cases, and certain property cases); the Money Claim Online judicial ODR platform (discussed supranote 6); and LORD JUSTICE BRIGGS, Civil Courts Structure Review: Interim Report, JUDICIARY OF ENG &

https://www.judiciary.gov.uk/wp-content/uploads/2016/01/ccsr-interim-report-dec- 15- finall.pdf

(recommending the establishment of an online court for claims up to £25,000)

13See Council On Online Dispute Resolution For Consumer Reports Regulation No 524/2013 of the European

Parliament and of the Council of 21 May 2013 on Online Dispute:

http://eur-ex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:165:0001:0012: EN:PDF;

United Nations Commission on International Trade Law (UNICITRAL) Rep on its 43rd Session, U.N DOC A/65/17 at 257 (2010); UNICTRAL's Working Group III (Online Dispute Resolution): http://www.uncitral.org/uncitral/commission/working_groups/30nlineDisputeResolution.html

14See RICHARD SussKIND, THE END OF LAWYERS? RETHINKING THE NATURE OF LEGAL

SERVICES 99-145 (2008)

development of contemporary legal system.15

1.2.2 Characteristics of online dispute resolution

The term ODR refers to an alternative measure and occurs outside the traditional court with a complete procedure Accordingly ORD reduces or even completely eliminates the need for the actual presence of the parties at a meeting or hearing in order to dispute a value that is not too large and the level of complexity can

be resolved

General characteristics

The main distinguishingcharacteristic of ODR processes from the traditional type is the deep reliance on information technology in service delivery, although not all ODR applications are "software" Accordingly, technology can make many dispute resolution processes more accessible, less expensive, easier and faster The quality of the process can be improved by creating new features with rapid technological advances along with the increasing internet increase in everyday life ODR is considered to become a natural next step in the process of developing dispute resolution

ODR has limitations that the online environment imposes upon people in communication The privacy, security, and neutrality of the online interface also cause a lot of inconvenience, so ODR systems are now mainly applied for simple and low-value disputes.16

The EU ODR Regulation does not contain the definition of ODR While according to UNCITRAL, ODR is: Dispute resolution mechanism through the use of

15 See Susskind supranote 12, 13; Orna Rabinovich-Einy, Balancing the Scales: The Ford-Firestone Case, the Internet, and the Future Dispute Resolution Landscape 6 YALE J OF L & TECH 2, 21 (2004) ("internet

society will alter the dispute resolution landscape in fundamental ways")

16 See, e.g., Betancourt &Zlatanska, supra note 25, at 263; Julia Hornle, Encouraging Online Dispute Resolution in the EU and Beyond, 38 EUR L REV 208 (2013) (criticizing ODR initiatives that "move away from due process and justify this with the argument that cross-border low-value and high volume disputes cannot be solved other than throughvery efficient, highly automated, and hence, cost-effective procedures.")

electronic communications and other information and communication technologies This argument does not provide any guidance in distinguishing ODR from traditional ADR techniques and should be considered unsatisfactory The UNCITRAL definition has only a very narrow specification of the types of technologies that ODR providers can incorporate into their services However, ODR vendors often combine these modern means of communication with the ability of computer information processing, along with the recent development of artificial intelligence to help technology play a key role in neutral decision making process.17

In addition, a clearer distinction between ODR and ADR, which is some form

of ODR with no obvious offline equivalents, has also emerged as an automatic negotiation process for bidding in the field of bidding called blind bidding Basically,

in a blind bidding process, the parties invited to submit their lowest and highest payment offers through an online platform, will not disclose any of these offers to across Instead, the software algorithm will try to match these offers to find equilibrium.18 This shows significant expansion and flexibility of ORD compared to traditional ADR

Instrumental & Principal ODR systems

Instrumental ODR systems are basically a virtual space to carry out the dispute resolution process with a specialized communication platform that allows online process execution This system helps the parties collect and provide information to expedite the process of dispute resolution: planning, interaction and decision making However, the system still controls users and provides general process direction Therefore, the characteristics of this ODR platform require that the third party (human) operate the system and communicate with the parties to the dispute.34 Software tools can be improved for effective handling when operating processes, but

17 M BARENDRECHT and C HONEYMAN, “Dispute Resolution: Existing Business Models and Looming Disruptions”, Disp Resol Mag 2013-2014, afl 20, 20

18 For a more extensive case study, see: P CORTÉS, ODR, supra note 2, 64-66

they do not have a decision-making role

Unlike instrumental ODR systems, Principal ODR systems play an active role

in facilitating dispute resolution, in addition to allowing communication and information access; this system is often supported by artificial intelligence to automate the capabilities of third parties that play a role in traditional dispute resolution This system is capable of educating parties about available options, identifying interests and goals, and identifying strategies In addition, the system also sets out the rules that apply and applies them, allows maximize mutual benefits, creates resolution and self-determines final result As such, principal ODR systems can reduce the expensive and limited dependence on traditional professional dispute resolution

1.3 Online arbitration

1.3.1 Concept of online arbitration

Similar to traditional offline arbitration, Online Arbitration also owns a functional scenario of “a mode of resolving disputes by one or more third persons who derive their powers from agreement of the parties and whose decision is binding upon them”.19 However, it could be seen from the definition point of view, Online Arbitration also owns a further element than traditional arbitration, which is technology and this element vitally differ this type of arbitration from traditional one This technology appearance is also reflected in the terminology for Online Arbitration, for instance, transnational online arbitration20 or internet arbitration.21

Basically, according to Slavomir (2011) online arbitration there are two basic models First, in order to control costs and ensure quick procedures, the parties

19 Henry P De Vries, “International Commercial Arbitration: A Contractual Substitute for National Courts”

(1982) 57 (1) Tulane Law Review at p.43

20 Antonis Patrikios, “The role of transactional online arbitration in regulating cross-border e-business – Part

II” (2008) 24 (2) Computer & Security Report

21See<http://www.net-arb.com/> last visited on 10Jan20

conclude transactions in traditional paper form, calling for arbitration online for disputes Accordingly, major arbitration institutions around the world provide online tools for parties to file and manage their cases online in order to transfer any dispute originating from the "real world" to "virtual world" Second, to sign a contract, businessmen around the world will use modern means such as signing via email exchange Similarly, for terms or agreements the arbitration can communicate via modern means to call for arbitration International contracts of great value often do not use the above-mentioned method, but they are quite common for small value transactions but in bulk transactions.

Online technology involves exclusively or partly to Online Arbitration proceedings.22 If several major parts are conducted entirely based on the support of online technology, occasionally, procedural parts of arbitral process are performed in person, such as in-person meetings instead of conference calls, yet the rest are still performed online, such arbitration still is considered an Online Arbitration case It could be initially concluded the vital role of technology and also a way to differentiate this type of Online Arbitration from offline or traditional arbitration

Even though Online Arbitration is seem more related to Internet, the concept

of this type of arbitration seems to be more related to Internet, it is evidenced that Online Arbitration can be considered an adjudicatory or right-based23 process as it also follows procedural elements, similar to offline arbitration process and delivers a final binding or non-binding arbitral award.24 In a sense, Online Arbitration appears

to be similar to offline arbitration from a conceptual perspective

Another important feature is that online arbitration is not merely a

22 Haitham A Haloush & Bashar H Malkawi, “Internet Characteristics and Online Alternative Dispute

Resolution,” (2008) Vol 13 (2) Harvard Negotiation Law Review, at p.342

23 A view of the scope of rights-based and Internet-based approaches by Alaska Judicial Council; Alternative Dispute Resolution; and the Alaska Court System, 1999, at p.2,< http://euro.com.cmu.edu/program/law/08-732/Courts/medguide99.pdf >, last visited on

24See Chinthaka Liyanage in Online Arbitration Compared to Offline Arbitration and the Reception of Online Consumer Arbitration: An Overview of the Literature, 22 Sri Lanka J Int’l L 173 (2010)

combination of traditional arbitration and online media There is a big difference between the core elements of online arbitration and traditional arbitration such as the fairness and independence of the arbitrator while other unnecessary elements exist in online arbitration, or the degree of compliance with such factors may vary Online arbitration can provide a very flexible method of dispute resolution recognized as a valid process and can be adapted to the needs of the parties.

In summary, online arbitration is a process by which the parties can submit disputes entirely online or in part online using internet technology, in a consensus manner for a decision maker chosen by the parties, to make a decision and to make a dispute resolution decision by the parties' agreement or a decision of the arbitral tribunal.Therefore online arbitration may be categorized as:

o Totally online binding arbitration: Every process from filing to making

a judgment is done entirely;

o Totally online non-binding arbitration: There is no stage of arbitration that must be mandated online;

o Unilaterally binding online arbitration: only one party shall perform procedures of online arbitration;

o Partly online binding arbitration: A process of arbitration can be conducted through face-to-face meetings such as signing an arbitration agreement or making a decision

o Partly online unilaterally binding arbitration: only one party shall perform some of procedures of online arbitration;

o Partly online non-binding arbitration25: There is some stages of

25 Farzaneh Badiei Online Arbitration Definition and Its Distinctive Features Faculté de droit, UNI MAIL, 40 Boulevard du Pont d‘Arve 1205 Genève, Switzerland

arbitration that must be mandated online.

1.3.2 Structure and legal basis of electronic arbitration

In Article 7(1) of Model Law26, the content does not include any clear guidance about the exchange of arbitration agreement by online means, for instance, emails or by asserting to an offer on a website; besides, it does not mention any possibility of the formation of arbitration agreements through electronic documents that are signed by electronic signature.27 Under New York Convention, the formation

of this type of agreement could be found in requirement of “agreement in writing”28, signed by parties or contained in an exchange of letters or telegrams.29 The exchange

of letters and telegrams was in 1958 added to make sure that arbitration could be agreed upon using the most modern means of communication.30

1.3.3 Advantages and disadvantages of online arbitration

1.3.3.1 Advantages

The application of an online arbitration mechanism costs significantly less than traditional dispute resolution systems (including time savings) In addition, thanks to the Internet platform, there are no physical boundaries for the parties involved, overcoming obstacles of location and distance The simplicity and convenience of the online settlement process, which does not require a lot of complicated procedures from stakeholders, are the corrective advantages of online arbitration.Along with increasing the development of modern software systems both

26UNCITRAL, UNCITRAL Model Law on International Commercial Arbitration art 7(2), U.N Doc A/40/17 (June 21, 1985), revised by UNCITRAL, Revised Articles of the UNCITRAL Model Law on International Commercial Arbitration, U.N Doc A/61/17 (July 7, 2006) [hereinafter Model Law]

27 See Model Law, supra note 3, at art 7(1)

28 By virtue of the more-favorable-right provision of art VII.1 NYC, a party seeking enforcement of a foreign award is not obliged to base its enforcement on the New York Convention It may choose to base the

enforcement on another treaty or national law (e.g art 1076 Dutch Code of Civil Procedure)

29See art II.2 NYC

30 See also J Arsic, International Commercial Arbitration on the Internet: Has the future come too early? Journal of International Arbitration, Vol 14 (Issue 3), 1997, pp.209–222

in developed and developing countries, the application of online arbitration may be able to spur international trade activities, leading to economic growth Specifically, the advantages of the above mechanism are as follows:

Firstly, the advantage is fast speed: All communications between parties will normally take place via electronic means so this process can be conducted faster than traditional arbitration

Secondly, online arbitration mechanism is easy access: The parties can easily access the procedure content and documents and they will be able to present any documents from any time and place

Thirdly, online arbitration mechanism save time and cost: The parties do not need to go to different locations to present evidence and documents because all procedures are done via the Internet

Fourth, the advantage is flexibility: The parties can also agree to create a more flexible process, set up convenient implementation stages and can choose the law according to the dispute to be resolved

In addition, the online dispute resolution (including online arbitration) process has a proven advantage in reducing hostile tensions between the parties The parties involved in the conflict feel less hostile, calmer and more confident when resolving disputes online The distance between the two sides to the conflict helps keep them calm and focused on the intrinsic issues and helps the dispute resolution process more effectively.31

Democracy is also considered one of the advantages of online arbitration, whereby all parties are equally considered in terms of status The argument is that the democracy inherent in online arbitration processes (compared to ADR processes

31 A.-M.B HAMMOND, <<How Do You Write "Yes"?: A Study on the Effectiveness of Online Dispute Resolution , in Conflict Resolution Quaterly, n 20(3), 2003, pp 261-277

based on face-to-face meetings) is likely to contribute to an agreement in which both parties are satisfied The common practice of disputes such as B2C is that of a strong party (seller) against a weak one (consumer), so the advantage of democracy is particular importance in case above.32

Finally, the advantage is decentralization: Arbitrators and parties may act from anywhere in the world without being bound by any particular local laws The parties discussed other issues through video conferencing.33

E-commerce online arbitrationadvantages

For e-commerce, online arbitration provides internet users with good and effective dispute resolution mechanisms and helps the parties to be more confident when participating in transactions Online arbitration allows parties to resolve their disputes through familiar mechanisms, quickly andinexpensively with an expert in the matter to resolve their disputes

Although online arbitration may be a suitable solution for the majority of e-commerce disputes, it is not the best solution in all cases For small value B2C transactions, other ADRs such as mediation or small claims procedures are more effective because the cost of the arbitrators and the procedure may be higher than the actual amount of the dispute 34

An online arbitration procedure may be the best option for related parties if the transaction involves larger and often larger amounts of money in B2B transactions This procedure avoids conflicts of jurisdiction, is flexible and simple but has a high

32 P JOHNSON, <<Enforcing online arbitration agreements for cross-border consumer small claims in China and the United States>>, in HastingsInt'L & Comp L.Rev., n 36, 2013, pp 577-582 The value of Johnson's statement is especially important because the future of online commerce depends to a great extent on the development and improvement of a mechanism where consumer confidence is built and an increasing access to justice in an online business environment is achieved; see D LAVI, op cit., p 876

33 Gabrielle Kaufmann-Kohler, Schultz, Thomas, Online dispute resolution, op cit,, p 68

34 Schultz, G Kaufmann-Kohler, D Langer, V Bonnet, Online Dispute Resolution…, op cit., p 69

procedural effect that will result in binding and enforceable results This is an advantage that mediation and other ADRs do not have Online arbitration is helpful to resolve single e-commerce disputes such as disputes involving domain names, intellectual property issues in e-commerce transactions can be effectively solved through In addition to e-commerce, most types of disputes can be effectively resolved through online arbitration.35

1.3.3.2 Disadvantages

Despite its advantages, online arbitrationalso has certain limitations

Firstly, written communication has drawbacks and is always considered to be lacking compared to direct communication, with the ability to convey richer information and more interaction between people with non-verbal suggestions such

as gestures, facial expressions and voice

Second, most of the processes are not binding or can be done if only the customer agrees before using Online Arbitration and handling in case of future disputes that the post-dispute agreements to ODR use is rare in practice due to technology reliability, online information security and process regulation 36

In addition, when participating in online arbitration, the parties may be attacked by hackers, lost information due to viruses, changed due to technological advances and other technical difficulties and obstacles, causing for increased investment in security and information backup mechanisms However, due to overcoming many inconveniences of traditional arbitration mechanism, basically the cost to maintain the online arbitration system is still lower than the traditional system

1.3.4 Block-chain regulation and Machine Made Justice in Online Arbitration

35 The UDRP

36 Paul Schwarzenbaker, Online Arbitration: A European and US Perspective, 10 Bocconi Legal Papers 387 (2018) p.7

Even with the recently emerging blockchain technology being viewed as a no-dispute environment in which transactions are irreversible and doneautomatically, the issue of dispute resolution has been and existing Accordingly, blockchain will inevitably create misunderstandings, conflicts and unforeseen situations, like any other field of human participation in an increasingly complex and rapidly growing context Accordingly the potential for the field of blockchain related to online arbitration is increasing.37

In addition, Blockchain encourages and facilitates new dispute resolution capabilities such as the ability to create new private decentralized dispute settlement mechanisms such as Aragon and OpenBazaar platforms and open source platform for smart contract disputes.38

Machine Made Justice

Language recognition technology, voice recognition technology and image processing technology give software systems human-like capabilities like never before However, the software is still unable to deduce and make decisions like a human being to the complex and dynamic nature of the legal phenomenon The software has not been able to identify strongly and accurately enough to establish rules to make reliable automatic binding decisions between contexts and in situations never encountered before Software makes it difficult to 'translate' rules and concepts

of justice into specific statements (Ayelet, 2018) Although recent advances in artificial intelligence technology have made software more intelligent and more

37 Orna Rabinovich-EinyEthan Katsch 2019 Blockchain and the Inevitability of Disputes: TheRole for Online Dispute Resolution Published by University of Missouri School of Law Scholarship Repository

38 Darcy W E Allen1, Aaron M Lane2 and Marta Poblet 2019 The Governance of Blockchain Dispute Resolution From: https://www.researchgate.net/publication/331155400

human-like but its use in online arbitration needs more research.

Traditionally, the Online Dispute Resolution System has often simulated traditional dispute resolution solutions, but instead of meeting face to face, it has become online However, many models of intelligent online dispute resolution with many advanced applications of Artificial Intelligence (AI) have operated in practice and provided support for smart negotiation and decision making (Arno & John, 2010) AI applications are a subset of IT applications and can be further improved using intelligent techniques or implemented in an intelligent way Accordingly, online referees can really benefit from AI applications There are many signs that it will not take long before AI becomes a practical component of the mainstream online arbitration system and careful application of AI can make online arbitration much more efficient (Arno, 2003)

1.3.5 Applicable law to online arbitration

Although there are currently no international legal regulations designed specifically for online arbitration, the rules for traditional arbitration can be applied to this rule However, due to its special characteristics, a set of rules specifically designed for online arbitrators will be convenient for the parties to dispute The current legal framework for traditional arbitration comes from international, regional and domestic regulations At the international level, the two main sources are the New York Convention and the Uncitral Model Law, which regulate the main aspects

of arbitration Most laws applied in countries have been governed by the mentioned

international instruments

1.3.5.1 International law

The New York Convention

The convention has been ratified by more than one hundred countries from different legal systems and is increasingly expanding Accordingly, the Convention

requires the national courts of the signatory states to recognize and enforce arbitral awards made abroad if all of the requirements have been complied with.39The Convention also sets out requirements that an arbitration procedure and a judgment must follow to be recognized and enforced Therefore, for an online arbitral award to

be recognized and enforced, it must comply with such requirements.Vietnam became member of this Convention in 1996

Karen et al (2002) in their study found that trade reservation is the biggest barrier to the use of online arbitration in cross-border B2C disputes With the same opinion, the New York Convention was drafted to enforce arbitration agreements in commercial disputes between the two businesses Ensuring that the contractual terms, especially, contractual terms for arbitration will be enforced is one of the goals of the New York Convention The study also argues that when two businesses engage in an online transaction, in keeping with the spirit of the New York Convention, the record between them demonstrates their intention to resolve any dispute by means of online arbitration then an agreement should be enforced However, in the case of a dispute being a consumer, the New York Convention does not provide a basic policy that is conducive to enforcing arbitration agreements As the inherent difficulty in the application of domestic laws to e-commerce has become more evident, standards of fair procedures for international arbitration for consumers are gradually being established Many countries have signed the text of the New York Convention, but it has not kept pace with consumer-related arbitration

The Convention requires signatory states to provide sufficient domestic regulations to apply the rules it prescribes and to ensure consistency, UNCITRAL has created Model Law for the countries to apply accordingly

The UNCITRAL Model Law

39 UNCITRAL website, http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention.html Consulted on February 2, 2010

The UNCITRAL Model Law on International Commercial Arbitration was adopted by UNCITRAL in 1985 and is adopted by many countries with some conformity and still keeping the general principles soModel Law is not a binding tool Accordingly, the Model Law has established common national standards for arbitration regimes and limits the powers of the courts, allowing arbitral tribunal to rule on its own jurisdiction.40

The model law covers all aspects of the arbitration process, from arbitration agreement to judgment aimed at harmonizing national legislatures on arbitration Thanks to the Model Law, it is possible to reach agreement between the parties involved in international arbitration and at the same time provide legal certainty.41

Legal initiative perspective

In a legal initiative perspective, OECD activities on Consumer Policy have been solving consumer disputes for many years through the development of E-commerce Principles; card payment protection; cross-border fraud; Recommendations on dispute resolution and consumer dispute resolution 42These recommendations include mechanisms for resolving disputes among consumers, thereby facilitating the recovery of economic losses due to business-to-consumer transactions with goods and services These recommendations essentially define the different types of mechanisms that need to be provided to consumers at the domestic and transboundary level

1.3.5.2 Regional law

There are several other regional conventions on arbitration such as the

40 Paul Schwarzenbaker, Online Arbitration: A European and US Perspective, 10 Bocconi Legal Papers 387 (2018) P.8

41 According to the UNCITRAL website

42 Paul Schwarzenbaker, Online Arbitration: A European and US Perspective, 10 Bocconi Legal Papers 387 (2018)

Inter-American Convention on International Commercial Arbitration (1975) or the European Convention on International Commercial Arbitration (1961) These conventions have been applied at a regional level However, more common are

custom applications in countries

1.3.5.3 National law

The final arbitration rules are based on national laws with certain identities (thanks to the Model Law), because each country has its own characteristics that the Model Law has not yet matched Local law will verify arbitration and judgment processes in order to comply with all requirements set out in specific domestic law

There is no provision in the legal framework that prohibits parties from participating in online arbitration The online version of the arbitration procedure should apply the rules of traditional arbitration at the most important points and it will

be more convenient to create a legal framework specifically designed for the online version in each country and region In particular, issues relating to the validity of electronic contracts should be clarified by courts or legislatures.43 The foregoing legal framework should recognize the validity of electronic documents and signatures; regulate the use of technology in procedures and other issues that may arise in the procedure from the use of electronic media

1.3.5.4 The Agreement

The first important question related to the validity of the online arbitration process is whether the parties can enter into an arbitration agreement online (instead

of using the traditional paper form)

The Convention44 requires the arbitral agreement to be in writing; therefore, it does not contemplate the possibility of entering into an electronic agreement On

43 Schellekens, M.H.M., “Online Arbitration and E-commerce.” Electronic Communication Law Revue Nr 9, Kluwer Lawinternational, p 125

44 Article II 1 of the Convention

the other hand, the Model Law45 sets forth that the arbitral agreement can be valid if its content is registered in any form

The above can be seen as either a contradiction between the two instruments,

or as an interpretation of the Convention UNCITRAL, recognizing “the widening use of electronic commerce and enactmentsof domestic legislation as well as case law, which are more favourable than the New York Conventionin respect of the form requirement governing arbitration agreements, arbitration procedings, and the enforcement of arbitral awards,” 46 issued a recommendation on 7 July 2006, suggesting that states must interpret the Convention in a broader sense, recognizing the validity of electronic arbitration agreements.47 This recommendation is not binding, and needs to be implemented in all the signatory states

We may take into consideration of the fact that the legislation of many contries fully admit the validity of electronic contracting and of electronic signatures, however, this is not a universal rule and many coutries still need to adapt its legislation to suit the fully validity of electronic contracting Even though such agreement seems to be valid, we would recommend the immediate modification of the convention (as it is the binding international instrument), in order to avoid any confusion about this issue

1.3.5.5 The Award

In order to enforce an arbitral decision, the Convention requires the interested party to present a duly authenticated original or copy of the award;48 similarly, the Model Law requires the award to be in writing and signed by the arbitrators 49 The

45 Article (2), (3) and (4) of the Convention

46 On http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/2006recommendation.html

47 Recommendation regarding the interpretation of article II (2) and article VII (1) of the Convention on the Recognition and Enforcement of Foreign arbitral awards (new York,1958) consulted on

http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/2006recommendation.html

48 Articles 20 and 31 (3) of the Model Law

49 Schultz, G.Kaufmann-Kohler, D.langer, V.Bonnet, Online dispute resolution, challenges for contemporary justice, Kluwer law international

above may represent a problem for online arbitration, as it is generally the case that the award would not be issued in paper, and it would not normally be signed (expect for the electronic signatures of the arbitrators, which is not regulated in all jurisdictions) However, the interpretation of the Convention and the Model Law may validate digital documents and electronic signatures in an award although such interpretation will depend on domestic legislation and each court’s criteria.

In any case, the arbitrators may just print, sign and authenticate the final award and hand it to the interested party; nonetheless, it could be convenient to modernize national legislation in this respect

There are no provisions in the legal framework that forbid parties from engaging in an online arbitration procedure, however, certain issues may be best attended with a special set of rules created specifically for the online arbitration procedure

The rules for the traditional arbitration are, in the most important points, applicable for the online version; nonetheless, it would be convenient to creat an especially for the online arbitration procedure

Enforcement of the award

Once an award has been issued, it needs to be complied with by the losing party As one of the characteristics of arbitration is that it is binding procedure, it is important to ensure that there is some definite procedure for enforcing the award Unfortunately, arbitrators lack imperium; therefore, they do not have the authority of enforcing the award by themselves, and require the assistance of a judicial court

Enforcement of an arbitral award in a national court may be quite a burdensome procedure It may require the translation of document, the presentation

of documents to the court, provision of service and notifications to the other party, and the possibility of an appeal In the most favorable scenario, it will take additional time to actually enforce it after the award has been rendered Parties may want to

avoid this procedure and get the award enforced in a more efficient manner Enforcing the award of an online arbitration will face the same inconveniences To overcome these hindrances, parties may agree upon extrajudicial mechanisms to expedite the enforcement of the award For example, parties can use an escrow or trustmarks Howevers, parties should agree upon the use of these extrajudicical mechanisms before the award is rended

CHAPTER 2: APPLICATION OF ONLINE ARBITRATION

IN THE WORLD AND IN VIETNAM

In commercial transactions, especially e-commerce with a high number of transactions, the participants in different countries and especially the transactions in the network environment with the participation of computer systems make disputes related to electronic contracts are increasingly complicated Online dispute resolution (ODR) in general and online arbitration in particular is dispute resolution mechanism that uses information technology to conduct dispute resolution.Two typical organizations that have used online dispute resolution are auctioning on eBay: SquareTrade.com and domain name disputes organized by international domain name management organization (ICANN)

SquareTrade and ICANN's online dispute resolution process don’t require face to face meetings and activities are conducted online This activity is becoming increasingly necessary for small-value disputes and long-distance transaction parties Furthermore, online dispute resolution is not only applied to e-commerce transactions, but can also be applied to traditional commercial transactions For example, SquareTrade has expanded its activities to resolve real estate disputes

ICANN has developed a standard procedure for resolving disputes related to online domain names so that it can quickly handle disputes related to this activity With a standard procedure developed by ICANN, dispute resolution organizations such as arbitration and courts can more easily evaluate and resolve related disputes

In addition to ICANN, there are organizations that have developed application programs to assist disputing parties in assessing their rights and obligations in the electronic transaction process Typically, SmartSettle has developed a model that allows parties to self-assess the extent of violations of rights and obligations in disputes related to e-commerce