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Self Mediation
(a.k.a. "The Quick Cancellation Option")
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Rent A Coder is now offering, a new arbitration option than can
save both parties considerable time and effort. It is called "Self
Mediation" (and sometimes "The Quick Cancellation Option")
and can occur when one or both parties wish to cancel the contract.
Like divorce in the legal system, the arbitration process on a cancellation
can be long and grueling...especially if the two parties contest each other
strongly, and the deliverables must be tested. In the United States (and
some other countries), a legal concept has been invented to help the opposing
parties come to a mutually agreeable solution in a much quicker amount of
time...the "no-fault" divorce. Self Mediation is modeled on the same
concept...by changing the focus of the discussion from the fault to what can be
agreed on.
If both parties can agree to the following issues, then they can now choose to Self Mediate:
- How much of the funds remaining in escrow should the coder receive? ($ amount?)
- Who will receive copyrights to the deliverables? (Buyer, Coder, or Split?)
- If there was an Expert Guarantee on the project...will the coder forfeit the expert guarantee or receive it back? (Coder forfeits it or Coder receives it back?)
Note: the Expert Guarantee cannot be split. If forfeited, it will be used to cover the cancellation fee (detailed below).
- Who agrees to assume the potential 3.5% cancellation fee? (Buyer, Coder or Covered by forfeited expert guarantee?)
Note: The cancellation charge is a "potential" charge becuase it is NOT always charged. Per the contract, it is
ONLY charged if a buyer gets a REFUND of funds...not if they simply transfer the funds to another
project. So, if the seller agrees to assume the charge, it is deducted from them immediately. Then the buyer either
chooses a transfer or a refund. Should they choose a transfer, then the charge would be refunded back to the Seller.
(Note:If the coder has no funds to cover this, then regardless of what is agreed upon, the buyer is responsible for the potential fee.)
Important qualifications:
A) Self mediation applies only to pay for deliverables projects. Pay for time projects already have a shortened
arbitration process.
B) Neither party can negotiate on ratings, because neither is allowed to rate
the other. Instead, the arbitrator places a neutral rating on both parties
saying "Seller and Buyer agreed to self mediate the following without formal
intervention by a Rent a Coder arbitrator…"... followed by the terms agreed to
by the two parties. The arbitration then shows up under the "self
mediated" column of both parties' profiles.
C) If the two parties cannot come to a mutual agreement on all of the above 3
items within 3 days...or if one of them wishes to prematurely end the Self
Mediation, then the process moves on to formal mediation/arbitration. Also, Self
Mediation is a "one time opportunity" that is only available before formal
arbitration starts in earnest. After that window of opportunity passes, neither
party may "change their mind" and request it again.
D) To prevent a party from abusing Self Mediation, a person can only choose it
on a limited # of projects. The limit is currently either 1 project or 10% of a
person's projects (if they have done more than 10 projects). After a person
exceeds this limit they must go into formal arbitration for further scrutiny.
E) If at any time, Rent A Coder learns with 100% certainty that either party was at fault, then Rent A Coder cannot in good faith allow the self mediation to continue, since that information would otherwise be hidden from other users of the site (who have a right to know that information).
If this occurs, the project will move to formal arbitration, regardless of the wishes of one or both parties.
F) This program starts 2/7/2005. It is NOT retroactive, meaning that
arbitrations which started before this date do not have a Self Mediation option.
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