Online Dispute Resolution on Warranties

Mechanisms to end consumer disputes have been documented over time and a major focus on the necessity to come up with alternative means to deal with these disputes is on the rise. Scholars have spent a considerable amount of time piecing up shreds of evidence as to why there have never been adequate policies to resolve disputes between buyers and sellers. Debates have arisen to discuss the advantages and the disadvantages of various attempts to solve these problems up to date, there have never been known policies that curb this deficiency in the market. Online dispute resolution on warranties still remains a major concern between sellers and buyers. Consequently, it should be noted that the buyers are the most affected since they are the ones who get deliveries of goods bought from online stores which with time cease to function as intended. This can be a major worry considering that these appliances bought were to be used to assist the buyer in some way and when these appliances break down a week or a month after purchase, it causes a lot of inconveniences. The purpose of this study is to highlight major facets of online dispute resolution on warranties and further to discuss the process of online mediation with respect to highlighting the gaps in online dispute resolution and the ways in which it can help address this challenge.

The significance of warranties can be articulated from an economic point of view that they are signals of quality and insurance against variations in the product performance and outlook. A warranty is a legitimate commitment of the manufacturer or a dealer who is liable to the buyers in the case where the purchased products malfunction or fail to meet the expectations of the buyer. It provides the buyer with the confidence to purchase a new product in the market which they have never tried before since it has a warranty covering its malfunctioning and other related challenges. Electronics and appliances are some of the hardest-working items in anyone’s household and with this fact, these items normally break down and wear out faster than any other appliances in the house. With today’s advancements in technology and complex characteristics, the cost of repairing these appliances and electronics can almost double or equal the product’s original price. With this fact in mind, it is essential that policies which curb against these products wearing out before due time be formulated to guard consumers against purchasing counterfeit electronics and appliances. Although a warranty serves this purpose, at times the buyer is met with situations where these warranties do not stand and there is a need for a resolution strategy to help the consumer from incurring losses of purchasing products which do not benefit them in the long run. The duration of lifetimes of a warranty is still confusing since it is still difficult to comprehend its measures of coverage. Despite its complications in defining warranty, it has received huge popularity in the product market since it guarantees a long reliable function of the products.

Online dispute resolution can be defined as a form of online settlement that utilizes alternative methods for dispute resolution on warranties on electronics, furniture, and appliances. The definition covers disputes that are fully or partially settled through the internet and have been reported on the internet but with the arbitrators outside it. Focusing on the literature review of the subject, there are synonymous terms that can be used interchangeably to mean the same thing as online dispute resolution such as alternative dispute resolution but this term is not universally used but is only limited to some countries.

Furthermore, to be able to conduct an online dispute resolution warranties on electronics, furniture, and appliances it is crucial to start by identifying the broad domain that the dispute resolution will cover, and in this study, my broad domain will be the family set up where these electronic, furniture and appliances are most utilized. A number of technical and ethical issues have been reported by users who claim that using this technology comes with a cost. There exist varied dilemmas that arise with the use of technology. These challenges can range from the practical time-consuming challenges through to the unlikely impersonation and online theft. Another challenge that meets the buyer in case of warranty issues is whether the dissonance in technological familiarity affects the equality between the aggrieved parties. First, the challenge that arises from these parties has to be the question of equality. When utilizing a certain technology, the difference in levels of knowledge can be a source of imbalance that occurs between these parties that is the seller and the buyer. Some people may experience broadband issues and this is going to hinder the process of online resolution since it will be difficult to follow the mediation process with technology that utilized obsolete technology in the arbitration process. The problem here is whether to allow one form of technology which one party is opposed to being utilized in the process of online dispute resolution or to adapt to other similar ways of attending to the problem.

Besides, identity and good faith is the other challenge facing the process of online dispute resolution on warranties to electronics, furniture, and appliances. As it has always been the norm, the internet has a strong culture of maintaining people’s anonymity. It is always difficult to know and differentiate whether the person speaking behind a computer is the real person that sold us the goods. In fact, it is imperative to expose ourselves to telephone calls and video sessions to aid in averting mediation scams which would otherwise have wasted our time and resources incurred in the resolution of the dispute. Although it may seem unrealistic to subject the resolution process to video call sessions, some buyers have reported cases of being scammed by such online activities to an extent of even receiving spam emails from pseudo-lawyers, and insurance entities offering cheap services to resolve a dispute.

The other challenge that arises from this domain is the dispute resolution process. Are the processes of dispute resolution fixed to certain procedures or they are flexible to accommodate changes and modifications to suit the affected parties. The process of resolution online should ensure that the confidentiality of the affected parties is not disclosed to outside parties. Also of the essence to note is the manner in which agreements will be formalized. How will a signature be appended on an agreement online? Here, some will agree that the mediation process adopted by a party should always be the one that serves all their needs without having to incur other expenses of covering for what the chosen online dispute resolution process cannot cover.

For my online dispute resolution, my main specific focus would be on warranties on electronics, furniture, and appliances in a household. I chose to specify this area since it is the worst hit in terms of warranty issues due to the fact that households are the major consumers of electronics, furniture, and appliances. Many buyers suffer in silence due to the purchase of counterfeit appliances or substandard furniture which wears out before serving the intended purpose they were bought for. With little or no policies to ensure that such practices are done away with, many buyers are living in fear of purchasing products only to reach home and discover that they were malfunctioning and thus a waste of resources. Nowadays, it is so costly to repair an electrical or furniture appliance in a household since the costs incurred are equal to the price of the new appliance. The main players involved here are the buyers who are the homeowners and the sellers who are vending the products. Here, the most appropriate population would be the middle-class people who can afford the electronic and furniture appliances that come with warranties. These consumers will be targeted since they lack the know-how on the procedure and processes of online dispute resolution on warranty. One of the most fundamental aspects of online dispute resolution is finding an organization that carries out an online resolution on warranties and that can assist consumers from fraudulent sellers.

Online dispute resolution not only assures the customers of time-saving procedural benefits but also the much-needed advantage of increasing access to the legal system which in most cases would take ages before cases presented to the judicial system are solved. In essence, the gap that Online Dispute Resolution fills is the reduction of costs that would have been incurred. The often friendly nature of Online Dispute Resolution coupled with the remarkable technological features of the internet makes it the most suitable avenue of addressing warranty issues arising from clients.

Some of the gaps that Online Dispute Resolution technologies fill include speedy resolution of cases which would otherwise be subjected to pending in courts of law for longer periods. Online Dispute Resolution is not time-consuming unlike other methods of conflict resolution available today. Disputes are always settled within days and can help a great deal in speeding up a dispute resolution. Time-consuming procedures always hamper litigation, however, many of the procedures that would elongate their timeframe for dispute resolution are not required when it comes to online dispute resolution. Additionally, most of the Online Dispute Resolution companies are always on time to ensure that clients are served on time. Affected parties are always encouraged to just login into their site and fill in the required forms and then wait for the resolution process to commence. There are no experienced delays once the electronic forms have been duly filled and submitted to the resolution company to verify and start the resolution process.

Moreover, the other gap that Online Dispute Resolution addresses are that of expanding the reach of the justice system. The significance of online dispute resolution is that these systems can significantly reduce the cost of getting disputes resolved, hence paving way for other justice systems to ever marginalized groups of people. Comparing the cost of filing a case with online dispute resolution companies is much cheaper than following the avenues of justice through courts of law. Cost is one of the factors that make online dispute resolution the most preferred medium of disputes resolutions on warranty. The affected sides always reach a consensus at the lowest price possible and this saves on the costs related to a court setup and even on traveling and venue reservation that is mandatory in other forms of dispute resolution.

My design for the envisioned new technology-assisted process will incorporate state-of-the-art technology where parties involved in mediation can communicate without glitches. I will use Big Data and Predictive Analysis technology where it analyses the costs involved in the mediation process and the potential outcomes, and also improve operational efficiencies. This technology will encourage innovations. The key elements and resources needed for this project to be successful include a proper framework on how disputes would be resolved and the possible implications that might arise when the resolution process is underway.

As always, online platforms are marred with obstacles that come with the introduction of new technologies. Some of the most renowned obstacles include inadequate planning and preparation where it should be known what needs to be done prior to the mediation process. Inadequate preparation means that the parties affected by warranty issues and the mediators will not be able to properly and accurately evaluate the case at hand. Additionally, waiting too long to mediate can reduce the transactional cost and thus save resources which could have been spent. The suggested solution that I would prefer is that the mediators and the parties affected should prepare adequately for the dispute resolution thus saving on costs which might be incurred on the stalled process.

Failure to communicate and listen is the other challenge that can undermine the online dispute resolution process. In times of mediation, some parties can express anger and disappointment, and other emotions. In this melee, others can miss important information being passed across. Successful mediation stipulates that barriers to effective communication ought to be dealt with in the most appropriate manner before the mediation process begins. Again, misunderstanding the loss or the risk analysis is the other obstacle to online dispute resolution. At times, the parties involved might argue so much due to anger and emotions to a point where the losses incurred by the buyer or the consumer is not quite documented or adequately covered in the hearing. This calls for both parties to be sober and engage in a meaningful way.

My design model will incorporate online dispute resolution best practices such as negotiations. This is an informal, typically unstructured process where the aggrieved parties try to resolve their differences through direct interaction in the presence of a third party who always acts as the mediator. On the other hand, the arbitration will be part of my design model where confidential procedures involving the adjudication of rights following the rule of law will be administered to the parties involved.

My design model is simple and user-friendly and boasts of an easy interface where users do not need any assistance from anybody to fill in the forms concerning the issues to be resolved. Once the complainants have filed the dispute to the system, they are redirected to a page where they are requested to choose the best payment method that suits them. From here, the user is directed to the confirmation page where they are required to agree to the terms and conditions and also receive a notification to either their email or a short message to their phone with the reference number of the case. Some of the methods that I will use to promote the adoption of this new design model is majorly through the internet where I will strategize on the best platforms to promote my design and also encourage people to embrace this design model that will solve most of their problems.

In conclusion, my design model has been designed in a manner that all the challenges facing online dispute resolution agencies are all covered in one section where users can also read and understand the terms of service and how the resolution exercise will be conducted. Online dispute resolution of warranty on electronics and furniture appliances will be best dealt with in my design model that not only boasts of state of the art technology but a user-friendly interface that is devoid of buffering issues and other information technology issues.

References

1. Cortés, P. (2010). Online dispute resolution for consumers in the European Union. Routledge.
2. Gramatikov, M. (Ed.). (2012). Costs and Quality of Online Dispute Resolution: A Handbook for Measuring the Costs and Quality of ODR. Maklu.
3. Mania, K. (2015). Online dispute resolution: The future of justice. International Comparative Jurisprudence, 1(1), 76-86. doi: 10.1016/j.icj.2015.10.006
4. Moffitt, M. L., & Bordone, R. C. (Eds.). (2012). The handbook of dispute resolution. John Wiley & Sons.
5. Palfrey, T., & Romer, T. (n.d). Warranties, Performance, and the Resolution of Buyer-Seller Disputes. The Bell Journal of Economics, 14(1), 97. doi:10.2307/3003540
6. Taylor, K. (2015). Technological Advances Help Resolve Disputes. Retrieved from https://www.mediate.com/articles/TaylorKbl20151218.cfm