Online Small Claim Dispute Resolution Developments - Progress on a Soft Law for Cross-Border Consumer Sales and the Development of a Global Consumer Law Forum

This article discusses online dispute resolution (ODR) developments in the context of the U.S. proposal to the Organization of American States (OAS) for development of a regional system and the pending consideration by the United Nations Commission on International Trade Law (UNCITRAL) of proposals for creation of a global ODR system. In particular, it addresses the advantages which result from incorporation into the ODR small claim low cost – high volume ODR process of a list of the bases for asserting claims. This list bypasses the need for the parties to resolve difficult and controversial issues of jurisdiction and applicable law in this type of transaction. High cost – low volume transactions require a comprehensive legal framework. Various proposals for creating such a soft law legal framework exist. The article discusses proposals for amending and extending the application of the International Institute for the Unification of Private Law (UNIDROIT) soft law Principles of International Commercial Contracts so that it would apply to consumer as well as commercial contracts. Voluntary incorporation by the parties of such a soft law into their high cost – low volume consumer or commercial contract would also bypass the need to resolve the difficult jurisdiction and applicable law issues which otherwise arise