Who Decides Whether The Case Is Litigated In Court Or Arbitration?
Many brokerage account agreements contain an arbitration clause requiring that any future disputes be resolved through arbitration rather than litigation. While arbitration is an effective, often advantageous, method of resolving a dispute, signing an agreement may mean that arbitration is the only forum other than mediation available to you. Even without signing an arbitration agreement, you would still have the right to seek arbitration of disputes as an option under most securities industry rules. The two most popular forums are the NYSE and NASD. If an arbitration agreement was not signed the customer might have the option to litigate in the courts or by arbitration. An arbitration panel hears the majority of cases.
Other Arbitration FAQs
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Q:
Are Companies Required To Inform Stockholders Of Their Involvement In A Lawsuit?
A: Companies are only required to report legal proceedings in their registration statement, quarterly report, and annual report. They do not have to make special reports … More -
Q:
Can I Get Information Concerning The Secs Ongoing Investigation Of A Public Company?
A: The SEC has a policy of maintaining confidentiality about any details of its investigations until the cases are filed with the courts or a similar judicial body. This … More -
Q:
Is It Possible To Obtain The Results Of An Sec Investigation?
A: You can only find out which companies or individuals have been charged with an offense, and this information may be obtained from the Enforcement Actions Section of … More -
Q:
Is It Possible To Find Out If There Have Been Complaints Filed With The Sec About A Particular Company?
A: Yes, the Enforcement Actions Section of the SEC provides this information, and you can often get similar information by way of the Freedom of Information Act. -
Q:
What Is The Difference Between Court And Arbitration?
A: In an arbitration proceeding there are no juries and the rules of evidence do not apply. Arbitration is usually faster and less costly then litigation in a court setting. -
Q:
How Does Arbitration Work?
A: In arbitration, a panel of one to three arbitrators hears and weighs the arguments and evidence of both sides of a case, then renders a binding decision. The … More -
Q:
Who Conducts The Arbitration Proceedings?
A: The three main forums for resolving securities arbitration disputes are; The American Arbitration Association, The New York Stock Exchange and The National Association … More -
Q:
Is A Lawyer Required For Arbitration?
A: There is no requirement for you to be represented by an attorney in the arbitration. But you should realize that the large brokerage company would typically have teams … More
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