Auctions have experienced one of the most successful transitions from a 'bricks and mortar' presence into an online environment. However, online auctions have one of the highest percentages of disputes and online fraud. This research investigates people's perceptions of dispute resolution prior to an online transaction. People's perceptions of 'power to resolve' a dispute is investigated as factor that may impact people's perceptions of online trust of e-business. A research model is proposed that is founded in online trust theory. The research design is a quantitative study. Data collected is analysed using analysis of variance testing, and structural equation modeling (SEM). This research provides a better understanding of the dispute resolution phenomenon, and potentially opens up a new direction of research into dispute avoidance. A new 'power to resolve' construct is developed to extend theory.
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