Martin has an investment account with William, who is a broker with City Brokerage. Martin believes that William has mishandled his account by churning it. If he files a complaint against William seeking compensation, the case will most likely be decided by:
A)the office manager of City Brokerage.
B)a civil suit judge.
C)a jury.
D)an arbitration panel.
E)the SEC Hearing Board.

Question

Quizplus · Accepted Answer

In most cases involving disputes between investors and brokers, there is typically a binding arbitration agreement in place that requires the parties to resolve their differences through arbitration rather than going to court. Therefore, it is most likely that this case would be decided by an arbitration panel rather than a civil suit judge, jury, or the SEC Hearing Board.

Martin Has an Investment Account with William, Who Is a Broker