ARBITRATION OFFERS THE CONSUMER A DESIRABLE ALTERNATIVE TO EXISTING METHODS OF DISPUTE RESOLUTION. THE INFORMALITY AND FLEXIBILITY OF THE ARBITRATION PROCEEDING PERMITS THE EQUITABLE AND CONCILIATORY PROCEDURE ENCOURAGES THE DEVELOPMENT OF POSITIVE COMMERCIAL RELATIONSHIPS BETWEEN THE PARTIES. VARIOUS CONSUMER ARBITRATION PROGRAMS HAVE BEEN ESTABLISHED, INCLUDING STATE-MANDATED COMPULSORY ARBITRATION PROGRAMS FOR THE RESOLUTION OF SMALL CLAIM CONSUMER DISPUTES, ARBITRATION UNDER SMALL CLAIMS COURT CONSTANT SUPERVISION, AND PRIVATELY CONDUCTED CONSUMER ARBITRATION HELD PURSUANT TO AN AGREEMENT BETWEEN THE PARTIES THEMSELVES. THESE PRIVATE ARBITRATIONS ARE OFTEN ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION OR THE BETTER BUSINESS BUREAU, ORGANIZATIONS FAMILIAR WITH ARBITRATION AND CONSUMER DISPUTES RESPECTIVELY. GOVERNMENTALLY CONDUCTED CONSUMER ARBITRATION PROGRAMS HAVE ATTEMPTED TO MODIFY THE ARBITRATION PROCESS TO MAKE IT MORE APPROPRIATE FOR THE RESOLUTION OF CONSUMER DISPUTES. PRIVATE PROGRAMS, RATHER THAN DEVELOPING AN INDEPENDENT CONSUMER ARBITRATION PROGRAM, VIEW CONSUMER DISPUTES AS A SUBSPECIES OF COMMERCIAL DISPUTES AND THUS RELY ON THE WELL-DEVELOPED RULES OF COMMERCIAL ARBITRATION. THIS IMPOSES A MECHANISM ON THE PARTIES, PARTICULARLY THE CONSUMER, THAT IS NOT SENSITIVE EITHER TO THEIR NEEDS OR TO THE NATURE OF THE DISPUTES, AND THUS CAN EASILY LEAD TO THE UNJUST AND THEREFORE INEFFECTIVE RESOLUTION OF CONSUMER DISPUTES. A FIRST STEP IN INCORPORATING A SPECIAL CONSUMER ARBITRATION MODEL FOR PRIVATE PROGRAMS IN A CONSUMER ARBITRATION STATUTE WAS TAKEN WITH THE ENACTMENT OF THE MAGNUSON-MOSS WARRANTY ACT, WHICH PROVIDES FOR ADVISORY RATHER THAN BINDING ARBITRATION, AND INCLUDES OTHER PROVISIONS TO ENSURE THE FAIRNESS AND IMPARTIALITY OF THE ARBITRATION PROCEEDING. HOWEVER, OTHER SERIOUS SHORTCOMINGS OF THE COMMERCIAL ARBITRATION MODEL MUST BE ELIMINATED AND REPLACED WITH PROVISIONS TAILORED TO THE PARTICULAR NATURE OF CONSUMER DISPUTES. REFERENCE NOTES ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED)