Group Spells Out B-To-B Dispute Guidelines

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January 04, 2001 (12:09 PM EST)

By Chuck Moozakis,

In an effort to help companies smooth their e-commerce transactions, the American Arbitration Association Thursday unveiled a new dispute management protocol.

The set of guidelines, drafted in concert with 20 companies ranging from Microsoft (stock: MSFT) and AT&T (stock: T) to PepsiCo (stock: PEP) and FedEx Corp. (stock: FDX) , aim to help online marketplaces resolve conflicts that may arise between buyers and sellers.

"As more business is conducted online, tools are needed to handle these disputes," said Debi Miller-Moore, vice president with the AAA's e-commerce group. Miller-Moore said 2 to 3 percent of business transactions require conflict resolution, a percentage she believes will remain about the same as businesses migrate to e-commerce.

The announcement includes a series of recommendations that companies should use as they attempt to resolve their disputes, Miller-Moore said.

Within the next few months, the AAA plans to flesh out the recommendations by offering specific guidelines that cover such activities as how suppliers should draft clauses that embrace "clear dispute policies," she said.

The arbitration group also plans to release dispute resolution applications that it will make available to exchanges. The applications, now being developed with a technology consulting firm, will let companies use the Internet to automatically resolve any problems they might encounter as they trade goods and services through online marketplaces. Miller-Moore said the AAA's branded applications will be available this spring.

The dispute management protocol can be found at the American Arbitration Association website: www.adr.org.