Series 66 – Uniform Combined State Law Exam Dispute Resolution & Mediation 5

Question 1

An investor loses money and wants to rescind a purchase under the Uniform Securities Act. What must the investor generally tender?

Accepted Answer

The security

Answer

Rescission requires tendering the security (or its value if disposed of) in exchange for consideration, interest, and fees.

Question 2

Which person has authority to issue a cease-and-desist order against a firm for violating the Act?

Accepted Answer

State securities administrator

Answer

The administrator may issue orders and seek civil or administrative remedies.

Question 3

A firm and customer agree after a dispute arises to submit the matter to arbitration. This is known as a:

Accepted Answer

Submission agreement

Answer

A submission agreement is signed once the dispute exists; FINRA uses a Uniform Submission Agreement.

Question 4

Which is true regarding an explained decision in FINRA arbitration?

Accepted Answer

It is provided if all parties jointly request it in advance of the hearing

Answer

Under Rule 12904, explained decisions are available when all parties jointly request them before the hearing.

Question 5

Statutory employment discrimination claims by an associated person against a member are:

Accepted Answer

Arbitrated only if the parties agreed to it after the dispute arose

Answer

FINRA Rule 13201 excludes statutory discrimination claims unless agreed after the dispute arises.

Series 66 – Uniform Combined State Law Exam Practice Test