Series 66 – Uniform Combined State Law Exam Dispute Resolution & Mediation 3

Question 1

In a customer dispute where the claim exceeds $100,000, how many arbitrators will generally hear the case under FINRA rules, absent party agreement otherwise?

Accepted Answer

Three

Answer

FINRA Rule 12401 provides for a three-arbitrator panel when claims exceed $100,000.

Question 2

A broker-dealer wants to enforce a pre-dispute arbitration agreement against a customer who is part of a putative class action. What do FINRA rules provide?

Accepted Answer

Class action claims are not eligible for FINRA arbitration, and the agreement cannot be enforced against class members

Answer

FINRA Rule 12204 bars class claims from the forum and prohibits enforcing arbitration agreements against class members.

Question 3

Which describes an arbitration award in a FINRA proceeding?

Accepted Answer

It is generally final and binding with no right to appeal on the merits

Answer

Awards are final and binding and subject only to narrow judicial vacatur.

Question 4

An associated person has a dispute with their member firm about compensation. Where must it generally be resolved?

Accepted Answer

Through FINRA's industry dispute arbitration procedures

Answer

FINRA Rule 13200 requires arbitration of most disputes among members and associated persons.

Question 5

Is mediation under FINRA's program binding on the parties unless they reach a settlement?

Accepted Answer

No, it is voluntary and non-binding, and a party may withdraw

Answer

FINRA mediation is voluntary and non-binding; no outcome is imposed without agreement.

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Dispute Resolution & Mediation 3