Articles Posted in Business Law

In an era of rapid technological advancements, the field of dispute resolution has also embraced the digital age. E-mediation and e-arbitration have emerged as effective methods of resolving disputes online, offering convenience, cost-efficiency, and accessibility to parties involved. These processes, governed by specific rules and laws, utilize technology to facilitate the resolution of conflicts. In this article, we will explore e-mediation and e-arbitration rules and laws, their benefits, and their impact on the future of dispute resolution.

E-Mediation Rules and Laws

E-mediation is a process in which parties engage in mediation remotely, using electronic platforms and tools. The rules and laws governing e-mediation aim to ensure that the process remains fair, secure, and effective. While the specific rules may vary depending on the chosen e-mediation platform or jurisdiction, there are fundamental principles that apply.

Internet dispute resolution has evolved and become more prevalent in recent years. The internet has offered many advantages when it comes to electronic commercial transactions and communications. It has enabled e-commerce websites to gain access to domestic and foreign customers. Naturally, there could be disputes between the e-commerce websites and their customers, or alternatively, between the customers themselves. These disputes are usually related to contractual rights and responsibilities which can be resolved through alternative dispute resolution – e.g., arbitration, mediation.

Geographic location of the parties can create an impediment for dispute resolution purposes. This is especially true because in most circumstances the parties hire a third-party neutral to review their files and issue a final decision. Internet dispute resolution provides an option to have the parties reach a practical solution even though they may be in different jurisdictions. The parties and their neutral judge can be in geographically different locations and need not meet in person to reach a final decision. This, in and of itself, provides a huge advantage from a logistical point. It also brings down the cost of traveling since they can use videoconferencing technologies.

Technology tools and techniques have provided a relatively stable platform for internet dispute resolution procedures. The software and hardware technologies that are available today allow the neutral judge (e.g., arbitrator, mediator), and interested parties, to effectively participate in the dispute resolution procedure. They can securely send and receive files which may include sensitive or confidential information such as financial information. These technologies are using encryption for security reasons. This way, the parties can have trust and confidence in the process and effectively use it.

Internet dispute resolution is paramount in the age of technology and innovation. Cyber-negotiation strategies have proved to be effective for online dispute resolution providers. These providers allow the parties to resolve their disputes by submitting settlement offers and negotiating over the internet.

Cyber-mediation and cyber-arbitration are part of the online dispute resolution services. They present certain advantages and disadvantages when compared to traditional mediation and arbitration. For example, online dispute resolution is effective and easy especially since it does not require the parties to travel anywhere. It is less costly and time consuming when compared to the traditional options. However, the disadvantage may be that it is impersonal as the parties do not meet the neutral judge in person. So, in essence, the entire process takes place online and no one has the opportunity to have an in-person meeting.

In most contracts, there is some kind of dispute resolution provision that allows the parties to avoid a formal lawsuit. The provision can include language about a preselection of the service provider the parties have chosen for administering the dispute resolution process. This way, they can agree beforehand that all disputes will be resolved without a formal lawsuit in state or federal court. It is important to note that litigation can be time consuming and expensive and online dispute resolution providers can deliver an alternative option.

Internet dispute resolution procedures such as arbitration or mediation are necessary when there is an actual case or controversy between the parties. These types of alternative dispute resolution procedures provide a viable option for the parties to solve their legal claims before or during litigation. So, in general, an appointed neutral third party (i.e., arbitrator, mediator) reviews the case and renders a decision with the following caveat: Arbitration is usually a binding process but mediation is not binding between the parties.

Internet disputes arise in several areas such as business transactions that take place between commercial organizations and their customers. They take place during international e-commerce transactions. Internet disputes may also occur between users or subscribers of social media websites. In any event, all kinds of online disputes are taking place which should be addressed and resolved by a qualified neutral third-party – i.e., arbitrator, mediator.

International e-commerce transactions have expanded in recent years especially since there are multiple websites that provide a way to find and order products or services. These e-commerce websites (e.g., Amazon, eBay, Alibaba) sell a variety of products or services to their users or subscribers. So, naturally, there will be problems which is why there should be a fair and efficient resolution system.

There is a general presumption that workplace privacy does not exist under any circumstances. However, that is not always the case. The state Constitution grants privacy rights and a private right of action to file a lawsuit against employers who violate those rights. It states in relevant part that: “All people are by nature free and independent and have inalienable rights. Among these are enjoying and defending life and liberty, acquiring, possessing, and protecting property, pursuing and obtaining safety, happiness, and privacy.”

The courts have decided that the main issue is whether the employee has a “reasonable expectation of privacy.” So, for example, employers are allowed to monitor internet usage or business email communications. Nevertheless, employers are not permitted to conduct surveillance in bathrooms or locker rooms. An employer may be held liable for disclosing the employee’s termination reasons, arrests, convictions, credit reports, misconduct reports, medical information, or confidential communications.

Employers are usually interested in social media activities of their actual or potential employees. They may review their social media accounts to make hiring decisions. However, California Labor Code § 980 prohibits employers from requesting disclosure of usernames or passwords of social media accounts. It also prohibits employers to require the employees to access personal social media accounts in their presence. California Labor Code § 980 states in relevant part that an employer shall not require or request an employee or applicant for employment to do any of the following:

Workplace privacy rights and legal restrictions on workplace monitoring are important issues. Many employers monitor employee activities to increase productivity and avoid workplace violations. They may use special software to monitor the network activities which can include email, telephone, and internet activities. However, they should also consider the employee’s reasonable expectation of privacy.

An employer, that has a legitimate interest in monitoring its employees, should be allowed to monitor business-related communications without problems. A legitimate interest can be established when there is proof that surveillance was conducted to promote efficiency and productivity. Employers usually inform their employees that they are being monitored to avoid violating their privacy rights. In other words, once the employee knows that he or she is being monitored, then he or she does not have a reasonable expectation of privacy. However, any kind of workplace monitoring should be narrowly tailored in time, place, and manner.

The Electronic Communications Privacy Act (codified under 18 U.S.C. 2511, et seq.) is a federal statute that is designed to control the workplace monitoring of electronic communications. It generally prohibits employers from intercepting electronic communications of their employees. Nevertheless, there are the following exceptions: (1) business purpose exception; and (2) consent exception. The “business purpose exception” applies when the employer is able to show surveillance was being conducted for a legitimate business purpose. The “consent exception” applies when the employer is able to show surveillance was being conducted with the employee’s knowledge and consent.

Electronic data exists on multitude devices for everyone. In other words, electronic information such as letters, emails, pictures, or videos are being stored on your electronic devices on a regular basis. Now, we should be cognizant of this process and take steps to protect the electronic information and promote privacy rights.

The Fourth Amendment was enacted to promote an individual’s right to privacy and states as follows:

“The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

The parties are generally entitled to discovery of relevant and admissible evidence during litigation. This process includes the discovery of electronically-stored information (“ESI”) which can be stored at internal and external locations such as the local area network and cloud.  It has become more prevalent for companies to transfer their electronic files to the cloud to reduce costs. It is now more practical to upload and transfer data to a third-party’s servers. However, there are certain risks associated with this process. First, you will be relinquishing control over the electronic information. Second, you will not have control over the third-party’s information security protocols. In other words, even if the electronic information is originally encrypted, it may lose its encryption status if uploaded or transferred to the third-party’s servers.

It is important for attorneys to have a general understanding of the client’s network infrastructure. So, it is always recommended to interview the client’s information technology staff. This way, legal counsel can be better prepared to ask and answer discovery-related questions. Moreover, the relevant discovery rules are outlined in the Federal Rules of Civil Procedure 26, 33, 34, 37, and 45, and Federal Rule of Evidence 502.

Court Mandated Guidelines

International e-commerce laws have been evolving since the inception of the information technology age. International e-commerce transactions take place over a network of computers and have become more streamlined with technology advancements. The following topics will be evaluated and addressed in this article: alternative dispute resolution and insurance.

Alternative Dispute Resolution (“ADR”) is an important factor when it comes to international e-commerce transactions. It is much easier to resolve local disputes without geographical challenges. However, that is not the case with international commercial transactions because the parties can be anywhere in the world. So, tracking, identifying, or locating the customer is not an easy task for international commercial transactions and presents jurisdictional issues. In most cases, they are related to contractual disputes for the purchase and sale of products or services. There could be non-contractual disputes such as trademark, copyright, data protection, and domain name disputes. The parties should have the option to engage in mediation or arbitration to resolve the dispute. Mediation is conducted by a neutral expert who renders a non-binding decision after reviewing the file. Arbitration is conducted by a neutral expert who renders a binding decision after reviewing the file. Our international mediation and arbitration attorneys regularly provide professional legal services to clients.

In some European countries, the customers are permitted to file a lawsuit against the e-commerce company in their own country or where the e-commerce company is located even if the company has no business operations therein. For example, in LICRA v. Yahoo, the French courts issued an order against Yahoo, which is based in the United States, to prevent French residents from purchasing Nazi memorabilia through its website.

International internet laws are related to international commercial disputes, jurisdiction, judgment enforcement, free speech and censorship, e-commerce transactions, intellectual property rights, or cybersecurity and privacy.

International commercial disputes can take place in foreign jurisdictions since the internet has no borders. The internet comprises of commercial, educational, governmental, and international networks that use certain communication protocols – e.g., TCP/IP, UDP, ICMP, HTTP, POP, FTP, IMAP – to communicate with each other. These protocols are used for data transmission across computer networks. For example, TCP/IP enables data exchange by providing end-to-end communications. UDP is used by software programs to transmit short datagram messages. ICMP is used for diagnostics and generating system error reports. HTTP, which stands for Hypertext Transfer Protocol, is a client-server protocol that permits access to web resources. POP is used to extract and download emails from a remote server. FTP, which stands for File Transfer Protocol, is used to send or receive files to or from a server and client computer.  IMAP, which stands for Internet Message Access Protocol, is used by email clients to download messages from a mail server. In short, these protocols are used to send and receive electronic information across the network of computers.

The issue of jurisdiction is important because there could be various reasons why a state or federal court would not choose to exercise authority over the parties. The courts have set out parameters for determining whether they can exercise jurisdiction. These parameters include the location of parties, defendant’s physical presence in the jurisdiction, and nature of violations towards the plaintiff.