Courtroom Procedures & Protocols Flashcards

Which statement best describes FINRA arbitration for customer disputes?

Answer: The award is final and binding with very limited grounds to appeal

Arbitration awards are final and binding and rarely vacated by courts.

A broker-dealer's customer agreement contains a pre-dispute arbitration clause. The clause must:

Answer: Disclose that arbitration is final and binding and that discovery is limited

Clauses require clear disclosure of arbitration's nature and limitations.

Under FINRA's customer code, claims generally become ineligible for arbitration after how many years from the event?

Answer: Six

The FINRA eligibility rule bars claims filed more than six years after the event.

Mediation differs from arbitration because mediation is:

Answer: Voluntary and non-binding unless the parties settle

A mediator facilitates settlement but cannot impose a decision.

A customer files a FINRA arbitration claim. Which is typically true about arbitrator selection?

Answer: Parties may take part in selecting the panel from lists

Parties rank and strike names from lists provided by FINRA.

A customer who signed a predispute arbitration agreement wants to sue in court. A member firm may:

Answer: Move to compel arbitration based on the agreement

Courts generally enforce valid arbitration agreements and stay litigation.

An arbitration award against a registered representative must be paid within what period under FINRA rules?

Answer: 30 days

FINRA requires awards to be paid within 30 days of receipt unless a motion to vacate is filed.