Dispute resolution organization
Encyclopedia
A dispute resolution organization, or DRO, is a conceptualized organization providing services such as mediation and arbitration through the private sector. It is an important aspect of anarcho-capitalist theory.
opines that court decisions need not be enforced by the government in order to be effective. Even before the decisions of dispute resolution organizations were considered legally enforceable in government courts, merchants obeyed them to avoid the risk of ostracism and boycotts. A merchant who refused to abide by the verdict would be blacklisted and thus become unable to avail himself of an arbitrator's services in the future.
notes that contracts could provide for appeals courts, if the parties were willing to take on the risk of extra expense occasioned by appeals. For a New Liberty
also cites appeals courts as a means of settling disputes among people who subscribe to different dispute resolution organizations. Thus, if Brown, a subscriber to Metropolitan Court Company is accused of a crime against Jones, a subscriber to Prudential Court, then the case may be heard in both courts; if the courts agree on Brown's guilt or innocence, then that judgment will stand; but if they disagree, then an appeals court agreed to by Metropolitan and Prudential will decide the case.
In the United States, the American Arbitration Association
handles about a fourth of the business arbitration in the country. Judgments in arbitrations arising from contractual arbitration agreements are ultimately enforceable in United States Federal Court because of the Federal Arbitration Act
. Trade associations handle the vast majority of such disputes. The Council of Better Business Bureaus operates arbitration programs for consumers and encourages businesses to precommit to arbitration of consumer complaints. Major private courts include Judicial Arbitration and Mediation Services Company, Civicourt, and Judicate. Many firms specialize in minitrials.
Enforceability of verdicts
Murray RothbardMurray Rothbard
Murray Newton Rothbard was an American author and economist of the Austrian School who helped define capitalist libertarianism and popularized a form of free-market anarchism he termed "anarcho-capitalism." Rothbard wrote over twenty books and is considered a centrally important figure in the...
opines that court decisions need not be enforced by the government in order to be effective. Even before the decisions of dispute resolution organizations were considered legally enforceable in government courts, merchants obeyed them to avoid the risk of ostracism and boycotts. A merchant who refused to abide by the verdict would be blacklisted and thus become unable to avail himself of an arbitrator's services in the future.
Appeals courts
The Market for LibertyThe Market for Liberty
The Market for Liberty is an anarcho-capitalist book written by Linda and Morris Tannehill, which according to Karl Hess has become "something of a classic." It was preceded by the self-published Liberty via the Market in 1969. Mary Ruwart credits the Tannehills and their book with winning her over...
notes that contracts could provide for appeals courts, if the parties were willing to take on the risk of extra expense occasioned by appeals. For a New Liberty
For a New Liberty
For a New Liberty: The Libertarian Manifesto is a book by American economist and historian Murray N. Rothbard, first published in 1973, that helped launch the modern libertarian movement in the United States, and was the first modern free market anarchist manifesto For a New Liberty: The...
also cites appeals courts as a means of settling disputes among people who subscribe to different dispute resolution organizations. Thus, if Brown, a subscriber to Metropolitan Court Company is accused of a crime against Jones, a subscriber to Prudential Court, then the case may be heard in both courts; if the courts agree on Brown's guilt or innocence, then that judgment will stand; but if they disagree, then an appeals court agreed to by Metropolitan and Prudential will decide the case.
Examples in practice
Many such organizations exist. For instance, Ethan Katsch and Karim Benyekhlef formed the Internet Dispute Resolution Organization which features a tested online dispute resolution interface. A perceived advantage of dispute resolution organizations over governmental court systems is that the former can exist in a competitive marketplace in which entrepreneurs on the lookout for profits seek to outdo their rivals in providing good service, low prices, and other features valued by their clientele. However, such organizations would not necessarily need to be for-profit; many dispute resolution organizations today are nonprofit organizations funded largely through grants from charitable foundations as well as local governments with an interest in taking some of the adjudication burden off of their court system. In an anarcho-capitalist society, voluntary communities might provide such grants.In the United States, the American Arbitration Association
American Arbitration Association
The American Arbitration Association is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. It is headquartered in New York...
handles about a fourth of the business arbitration in the country. Judgments in arbitrations arising from contractual arbitration agreements are ultimately enforceable in United States Federal Court because of the Federal Arbitration Act
Federal Arbitration Act
In United States law, the Federal Arbitration Act is a statute that provides for judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held in Southland Corp. v. Keating...
. Trade associations handle the vast majority of such disputes. The Council of Better Business Bureaus operates arbitration programs for consumers and encourages businesses to precommit to arbitration of consumer complaints. Major private courts include Judicial Arbitration and Mediation Services Company, Civicourt, and Judicate. Many firms specialize in minitrials.
See also
- Private military companyPrivate military companyA private military company or provides military and security services. These combatants are commonly known as mercenaries, though modern-day PMCs refer to their staff as security contractors, private military contractors or private security contractors, and refer to themselves as private military...
- Private defense agencyPrivate defense agencyA private defense agency is a conceptualized agency that provides personal protection and military defense services voluntarily through the free market. A PDA is not a private contractor of the state and is not subsidised in any way through taxation or immunities, nor does it rely on conscription...
- Private GovernancePrivate GovernancePrivate Governance occurs when non-governmental entities, including private organizations, dispute resolution organizations, or other third party groups, make rules and/or standards which have a binding effect on the "quality of life and opportunities of the larger public." Simply put, private—not...
- Reputation ratingReputation systemA reputation system computes and publishes reputation scores for a set of objects within a community or domain, based on a collection of opinions that other entities hold about the objects...
- Social network serviceSocial network serviceA social networking service is an online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities. A social network service consists of a representation of each user , his/her social...