FINRA ELABORATED QUESTIONS WITH CORRECT ANSWERS

FINRA ELABORATED QUESTIONS
WITH CORRECT ANSWERS


Mediation - CORRECT ANSWER- k k k


Arbitration and ______ are two distinct methods of resolving secu
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rities disputes between two or more parties. Disputes, claims or c
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ontroversies arising out of business dealings with any FINRA bro
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kerage firm can be resolved in arbitration or ______.
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Arbitration - CORRECT ANSWER- k k k


______ is a formal dispute resolution process in which the parties
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—
customers, brokers, or brokerage firms making or responding to a
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kclaim—
select a neutral, third party called a(n) ______, to listen to the arg
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uments set forth by parties, study the testimonial and/or documen
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tary evidence, and render a decision on the matter. By ______ yo
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ur claim, you forego the opportunity to have the same matter deci
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ded by a court of law because an ______ award is final and bindin
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g.

Mediation - CORRECT ANSWER- k k k


______ is an informal, voluntary and non-
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binding process. A(n) ______ facilitates negotiations between dis
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puting parties. The ______'s role is to help the parties find a mutu
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ally acceptable solution to the dispute.
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First - CORRECT ANSWER-
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Arbitration and mediation are important methods of dispute resol
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ution that have been used successfully by the securities industry
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and others, but they generally should not be your ______ steps.
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,Arbitration - CORRECT ANSWER- k k k


______ is a method of resolving a dispute between two or more p
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arties by neutral, qualified individuals, who serve as decision-
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makers after weighing the facts of each case presented. The deci
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sion-
makers are called ______. ______ of securities disputes against
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brokerage firms, brokers, or both provides a prompt and inexpens
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ive means of resolving issues. There are certain laws governing t
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he conduct of an ______ proceeding. The most important of thes
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e is perhaps the fact that an ______ award is final and binding, su
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bject to review by a court only on a very limited basis. Parties sho
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uld also recognize that ______ their claims precludes them from
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pursuing the same claims through the courts. k k k k k k




Request for Mediation - CORRECT ANSWER- k k k k k


You may file a ______ ______ ______ at any time, whether or no
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t you have already filed an arbitration claim. However, ______ is
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a voluntary process —
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kno party is required to ______ a dispute. When we receive your r
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equest, FINRA Dispute Resolution staff will contact the other part
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y or parties to the dispute to explain the ______ process, and see
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k their agreement to ______.
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Mediation - CORRECT ANSWER- k k k


Initiate a ______: This is the first step of the ______ process. Wh
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en one party expresses an interest in ______, FINRA will contact
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the other parties to determine their interest, The parties may sub
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mit all or some of the issues in dispute to ______, and may _____
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_ selected substantive or procedural issues.
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Complaint - CORRECT ANSWER- k k k


If you file a ______ with the Investor ______ Center, FINRA can i
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nvestigate any potentially fraudulent or suspicious activities by br
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okerage firms or registered representatives. You must initiate an
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arbitration or mediation to pursue monetary damages or other res
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titution.

,Attorney - CORRECT ANSWER- k k k


You should consider hiring an ______ to represent you during the
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karbitration or mediation proceedings to provide direction and advi k k k k k k k k


ce. Even if you do not choose to hire an ______, brokerage firms
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are generally represented by an ______. If you cannot afford an _
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_____, some law schools provide legal representation through se
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curities arbitration clinics. You can also check: (1) American Bar
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Association;
(2) Public Investors Arbitration Bar Association; (3) Martindale -
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kHubbell

Database - CORRECT ANSWER- k k k


FINRA's Arbitration Awards ______ enables users to search onli
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ne for FINRA and NASD arbitration awards free of charge, seven
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days a week. k k




Exchanges - CORRECT ANSWER- k k k


FINRA provides dispute resolution services for several ______ th
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at are not able to staff or operate a dispute resolution program. Th
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ese services include administration of the ______'s member-
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member, member-investor and member-employer securities- k k k k


industry related disputes. The term "member" may include broker
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age firms that are not members of FINRA.
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Code of Mediation Procedure - CORRECT ANSWER-
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This Code contains the official FINRA rules governing mediations
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. (7 pages)
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Statement of Claim - CORRECT ANSWER- k k k k k


The arbitration process begins with a party filing a ______ _____
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_ _____ with FINRA. The party who files the ______ ______ ___
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___ is called a claimant. The party against whom the ______ ___
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___ ______ is filed is called the respondent. The ______ ______
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_____ should provide the details of the dispute, including relevan
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t dates, names of entities and individuals involved, and the type of
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krelief requested and the respondents from whom the claimant is
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seeking relief or damages. The type of relief a claimant may requ
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, est, includes, but is not limited to, actual monetary damages, inter
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est, and specific performance.
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Answer - CORRECT ANSWER- k k k


An ______ is a written document that specifies the relevant facts
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and available defenses to the Statement of Claim. A respondent fi
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les an answer to the claimant's Statement of Claim.
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Number - CORRECT ANSWER- k k k


The ______ of arbitrators appointed to a case depends on the am
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ount and type of relief requested in the Statement of Claim.
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Initial Prehearing Conference (IPHC) - CORRECT ANSWER-
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Once the panel is appointed, FINRA schedules the ______ ____
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__ ______ (______). The ______ is the first time that the parties
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and arbitrators meet to set the schedule for the case and usually
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held by telephone. During this telephone conference, the arbitrati
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on panel will schedule evidentiary hearing dates, establish discov
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ery deadlines, set briefing and motion deadlines, determine whet
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her mediation is desirable, and address other preliminary matters
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.

Discovery Process - CORRECT ANSWER- k k k k


The ______ ______ allows the parties to obtain facts and informa
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tion from other parties to the arbitration in order to support their o
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wn case and prepare for the hearing. The Codes of Arbitration Pr
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ocedure require parties to cooperate with each other to the fullest
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extent practicable in the voluntary exchange of documents and in
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formation to expedite the arbitration process. The Codes contain
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rules that govern the ______ ______, including making ______ r
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equests, responding to such requests, objecting to ______ reque
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sts, and arbitrator authority to issue sanctions against parties for
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______ abuses. k




Closing - CORRECT ANSWER- k k k


After ______ the record, the arbitration panel considers all of the
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