Out-of-court proceedings or alternative dispute resolution (ADR) is a peaceful, voluntary alternative method for settling disputes without litigation in the court. ADR institutions usually use a third party to help the consumer and the trader reach a solution. The main purpose of this article is to share the main insights and experience about the out-of-court proceedings in various countries and present main trends of ADR development. First of all, in this article, ADR is presented and its main advantages or disadvantages, (...) main reasons of its origin are outlined. For example, ADR institutions are indeed a low-cost and quick alternative for consumers to settle disputes with businesses. These are the main reasons why ADR originated and developed so fast in the United States of America. Secondly, it is important to analyse various definitions used to describe ADR and its characteristics, because it is a very complicated and complex phenomenon. ADR and the principle of legal accessibility are also very closely related issues which are deeply analysed in this article. (shrink)

Out-of-court proceedings or alternative dispute resolution (ADR) is a peaceful, voluntary alternative method for settling disputes without litigation in the court. ADR institutions usually use a third party to help the consumer and the trader to reach a solution. The main purpose of this article is to share the main insights and experience about the out-of-court proceedings in various countries and European Union Member States, to discuss the most important problems concerning ADR and propose possible solutions of these problems. First (...) of all, in this article, ADR is presented and its main advantages are outlined. For example, ADR institutions are indeed a low-cost and quick alternative for consumers for settling disputes with businesses. ADR mechanisms are highly diverse. There are public and private institutions as well as institutions established on the basis of cooperation between the public sector and the industry or consumer organizations and the industry. Although there is a high correlation between the nature of the institution and the funding, i.e. private institutions are usually financed by the industry and public institutions by public funds, ADR bodies established by public law can also be financed by the industry (especially in highly regulated markets). In the majority of the institutions, the participation of the industry in the ADR procedure is voluntary. (shrink)