Part 4Consumer rights and disputes

Chapter 4Alternative dispute resolution for consumer contract disputes

Interpretation of Chapter 4

291Meaning of “ADR” and related terms

(1)

This section has effect for the purposes of this Chapter.

(2)

“ADR” means any method of securing or facilitating an out-of-court resolution of a consumer contract dispute that is carried out by an independent third party acting in relation to both parties to the dispute.

(3)

But the term “ADR” does not include anything carried out by a person in their capacity as—

(a)

a judge, or

(b)

a member of the staff of a court or tribunal.

(4)

The following are examples of ADR (if carried out as mentioned in subsection (2) in relation to a consumer contract dispute)—

(a)

mediation;

(b)

arbitration;

(c)

early neutral evaluation;

(d)

action under an ombudsman scheme.

(5)

In subsection (2) “resolution” includes—

(a)

a decision binding both parties;

(b)

a decision which, if accepted by the consumer, binds the trader;

(c)

settlement of the dispute between the parties.

(6)

“ADR provider” means a person who does either or both of the following—

(a)

carrying out ADR in relation to a consumer contract dispute, or

(b)

making special ADR arrangements.

(7)

“Special ADR arrangements” are (subject to subsection (8)) arrangements made by an ADR provider with another person (whether or not that other person is an exempt or accredited ADR provider) for ADR to be carried out by that other person in relation to one or more consumer contract disputes.

(8)

Arrangements made by a person acting for only one of the parties to a consumer contract dispute are not special ADR arrangements.

(9)

For the meaning of “exempt ADR provider” and “exempt redress scheme” see section 295.

(10)

“Accredited ADR provider” means a person who is for the time being accredited under this Chapter (whether or not their accreditation is limited to particular descriptions of ADR or special ADR arrangements).

(11)

In this section “judge” includes—

(a)

a member of a tribunal,

(b)

a justice of the peace or, in Northern Ireland, a lay magistrate,

(c)

a clerk or other officer entitled to exercise the jurisdiction of a court or tribunal, and

(d)

a holder of any other public office with functions of a judicial nature.