Fact Pattern 3-2
Ellen contracts with James to be her stockbroker, making stock trades for Ellen's account. Ellen need not pre-approve the trades that James makes, only trades for more than $20,000. Ellen and James include a clause stating "that in case of any disputes arising out of this contract; the dispute shall be arbitrated using the rules of the New York Stock Exchange."
Ellen learns that since signing her contract with James, he has routinely been making trades worth more than $20,000 without her permission, and losing money.
-Refer to Fact Pattern 3-2. Ellen and James arbitrate their dispute, who is most likely to be selected as an arbitrator?
A) a federal judge
B) a neutral expert on investment issues
C) a partial expert on consumer affairs
D) a mediator
E) a conciliator

Question

Quizplus · Accepted Answer

Since the dispute arises out of a stockbroking contract, a neutral expert on investment issues is most likely to be selected as an arbitrator. The clause in the contract also specifies the rules of the New York Stock Exchange, further indicating that an expert on investment issues would be most appropriate.

Fact Pattern 3-2 Ellen Contracts with James to Be Her Stockbroker, Making Stock