Flashcards in Chapter 1.11 Deck (11):
1
What is not required to be arbitrated?
A claim alleging employment discrimination including sexual harassment. But it may be arbitrated if the parties involved have agreed to arbitrate.
2
Who is permitted to issue subpoenas for both parties whether for discovery or for appearance at a hearing?
Only Arbitrators
3
Simplified Arbitration Procedure
May be used if the dispute doesn't exceed $50,000. One single arbitrator will be appointed to resolved the matter.
4
If claim is more than $50,000 but not more than $100,000.....
1 arbitrator is appointed unless the parties agree in writing to 3 arbitrators
5
If the claim is more than $100,000 or does not request monetary damages....
3 arbitrators are appointed unless the parties agree in writing to 1 arbitrator.
6
Arbitration Panel Composition
Customers in arbitration have the option to choose an all-public panel in all cases with 3 arbitrators. The customers include:
-1. Majority-public panel where the public is comprised of a chair-qualified public arbitrator, a public arbitrator, and a non-public arbitrator OR
-2. Optional all public panel which allows any party to select an all-public arbitration panel.
7
What are parties required to do prior to arbitration?
-Required to exchange any documents that they intend to present in the arbitration hearing at least 20 calendar days prior to the hearing date.
8
The arbitration and mediation rules provide that:
-Parties may represent themselves
-Parties may be represented by an attorney in good standing admitted to practice in any jurisdiction in the U.S.
-Parties may be represented by a person who is not an attorney(unless they are currently suspended or barred from the securities industry or suspended or barred from the practice of law).
**Promissory note disputes will be resolved by FINRA appointed chair qualified public arbitrators.
9
Pre-dispute arbitration agreement
When a customer opens a new account, the customer will receive a copy of the pre-dispute arbitration agreement.
-The customer must provide the firm with a signed acknowledgement of receipt of the agreement
-All parties to the agreement agree to arbitrate and waive court claims
-Decisions of arbitrators are final and binding and cannot be appealed
-Upon the request of a customer, member firms are required to provide a copy of the customer's predispute arbitration agreement within 10 business days.
10
When is a controversy not eligible for submission for arbitration?
If 6 or more years have elapsed from the date of the event.
11