Dispute Resolution & Mediation Flashcards
7 cards from real Series 66 – Uniform Combined State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Dispute Resolution & Mediation flashcards as text
Under FINRA's Code of Arbitration Procedure for customer disputes, within how many years of the occurrence or event giving rise to a claim must the claim be filed to be eligible for arbitration?
Answer: Six years
FINRA Rule 12206 makes a claim ineligible once six years have elapsed from the occurrence or event.
A customer demands arbitration against a member firm over a dispute arising from the firm's securities business. What is the firm's obligation under FINRA rules?
Answer: It must arbitrate if the customer requests it
FINRA Rule 12200 requires members to arbitrate at the customer's request even without a written agreement.
Which statement best describes mediation?
Answer: A neutral third party helps the parties reach a voluntary settlement
A mediator facilitates negotiation but has no power to impose a decision.
Under FINRA simplified arbitration, claims of what amount or less are decided by a single arbitrator, typically on the papers?
Answer: $50,000
FINRA Rule 12800 applies simplified procedures to claims of $50,000 or less, exclusive of interest and expenses.
How soon must a party pay a FINRA arbitration award after receiving it, unless a motion to vacate has been filed?
Answer: 30 days
FINRA Rule 12904 requires payment of awards within 30 days of receipt.
A broker-dealer's customer agreement contains a pre-dispute arbitration clause. Where must the disclosure about arbitration appear?
Answer: Immediately before the signature line in a highlighted manner
FINRA Rule 2268 requires the arbitration disclosure to be highlighted and immediately precede the signature line.
Which grounds may a court rely on to vacate an arbitration award under the Federal Arbitration Act?
Answer: The award was procured by corruption or fraud, or arbitrators showed evident partiality
The FAA permits vacatur only for narrow grounds such as corruption, fraud, evident partiality, misconduct, or exceeding powers.
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