Series 66 – Uniform Combined State Law Exam Dispute Resolution & Mediation 4

Question 1

Under the Uniform Securities Act, a purchaser who sues for violation of the antifraud provisions may generally seek which remedy?

Accepted Answer

Rescission, with interest and attorneys' fees, less income received

Answer

The Act's civil liability section allows recovery of consideration paid plus interest and costs, less income received, upon tender of the security.

Question 2

May a customer waive compliance with the Uniform Securities Act by signing a contract provision?

Accepted Answer

No, any such waiver is void

Answer

The Act voids any condition, stipulation, or provision waiving compliance.

Question 3

An arbitrator is determined to be 'public' under FINRA rules. Which person would generally NOT qualify as a public arbitrator?

Accepted Answer

A person employed in the securities industry within the past five years

Answer

Individuals associated with the securities industry within the recent look-back period are classified as non-public.

Question 4

In customer disputes, a customer may choose which panel composition?

Accepted Answer

A majority-public panel or an all-public panel as the rules allow

Answer

FINRA rules allow customers to select an all-public panel in qualifying cases.

Question 5

Which is a principal advantage of mediation over arbitration?

Accepted Answer

It is confidential and allows creative, party-controlled solutions

Answer

Mediation is confidential and lets parties craft their own settlement.

Series 66 – Uniform Combined State Law Exam Practice Test