Arbitration Commercial and Industry-Specific Arbitration 1

Question 1

What is FINRA arbitration primarily used for in the US financial industry?

Accepted Answer

Resolving disputes between investors and broker-dealers or between industry parties

Answer

FINRA arbitration resolves customer disputes with broker-dealers and investment advisors as well as inter-industry employment and business disputes in the securities sector.

Question 2

What is 'construction arbitration' commonly used to resolve?

Accepted Answer

Disputes over design defects, delays, payment, and change orders in construction projects

Answer

Construction arbitration addresses disputes between owners, contractors, and subcontractors over payment, delays, defects, and contract interpretation on building projects.

Question 3

In US labor arbitration under collective bargaining agreements, what is a 'grievance arbitration'?

Accepted Answer

Arbitration to resolve a union member's claim that the employer violated the collective bargaining agreement

Answer

Grievance arbitration resolves disputes over whether an employer's action violated the terms of an existing collective bargaining agreement, as distinct from interest arbitration over new contract terms.

Question 4

Which federal statute governs labor arbitration arising from collective bargaining agreements in the US?

Accepted Answer

Labor Management Relations Act (LMRA) Section 301

Answer

LMRA Section 301 provides federal jurisdiction for suits to enforce collective bargaining agreements, and federal common law governs labor arbitration under this statute.

Question 5

What type of arbitration clause is common in consumer financial service agreements and has faced significant scrutiny?

Accepted Answer

Mandatory pre-dispute arbitration with class action waivers

Answer

Consumer financial service arbitration clauses often include mandatory pre-dispute arbitration with class action waivers, limiting consumers' ability to pursue collective relief.

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration Commercial and Industry-Specific Arbitration 1