The rapid growth of electronic commerce increases the potential for conflicts over contracts which have been entered into online(e.g. about price, late delivery, defects, specifications...). Using arbitration as a dispute resolution alternative is becoming increasingly popular especially in cases involving intellectual property rights and technology disputes since speed and secrecy are essential. The use of online dispute resolution(ODR) mechanisms to resolve such e-commerce conflicts is crucial for building business, consumer confidence and permitting access to justice in an online business environment. However, the use of the Internet and the World Wide Web in dispute resolution has an impact on the types of communication implied in the relevant processes(negotiation, mediation and arbitration). This paper deals with legal issues with respect to the practice of online arbitration. The paper begins with a brief introduction to the theories behind arbitration. These sections will be followed by a discussion on the specifics of online arbitration and the problems the process faces online arbitration by the legal community.