Chapter 1.11 Flashcards Preview

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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

What can FINRA do if a member firm does not pay an Arbitration panel award that has been ruled against them?

FINRA can impose a fine, suspend the member firm's principals, or suspend the firm.

**Inability to pay has been eliminated as a defense for not paying an arbitration award or settlement.