● PROS &CONS ● Uroš Živković, LL.M. Lecturer at the University of Belgrade Faculty of Law

P RE - EMPTIVE CONSUMER PROTECTION : Adequate quality checks and control Regular inspection and monitoring Efficient system of informing consumers in a timely and complete manner Active participation of consumer associations Increasing the level in production standards and business/corporate ethics Applicable and efficient regulatory framework

P ROTECTION OF CONSUMERS IN THE MOMENT THE DISPUTE HAS ARISEN : Regular courts Litigation proceedings Duration of the proceedings Multiple instances in the decision making process General overload of cases pending before first instance courts Alternative mechanisms of dispute settlement Alternative to regularly competent courts ADR Arbitration

W HAT DOES ARBITRATION ENTAIL ? Arbitration agreement between the parties Institutional or ad hoc arbitration Independent and impartial arbitrator (or a three-memberer panel) Expedited(?) decision making in resolving the dispute Flexible procedural rules Greater party autonomy in the course of the proceedings Final and enforceable award that is equal to a national court decision One-instance decision making process (no appellate proceedings) Possibility to settle the dispute amicably

P ARTICULARITIES OF CONSUMER DISPUTES : Inequality of the parties in the drafting of the arbitration clause Formular clauses (problem of pre-drafted contracts) Parties’ inequality in the proceedings Difference in economic standing Overview of the existing practice in the EU - Spain

P ROS & C ONS OF THE CONSUMER ARBITRATION IN THE R EPUBLIC OF S ERBIA : Pros:Cons: Efficiency and cost- effectiveness of the procedure Confidentiality Expert oriented adjudicator (single arbitrator or a panel) Equality of the arbitration award and a national court decision Limitation of the choice of fora for the consumer Formular clauses “Inexistence” of the appropriate institutional mechanisms that could govern and administer the proceedings Who bears the costs of arbitration?

W HAT CAN ONE EXPECT IN THE FUTURE ? Proliferation of specialized, professional arbitrations organized within business and corporate associations that would resolve, among others, consumer disputes Problem “general” consumer disputes that would not be covered by existing arbitration mechanisms Increased activity in education of the consumers with respect to pros and cons of utilizing arbitration as a dispute settlement mechanism for consumer cases

P OSSIBLE SOLUTIONS ? Adopting the models that already exist on the EU level and that have proved to be efficient in consumer dispute resolution through active participation of local government and administration Organizing arbitration within existing professional associations

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