SIE Exam Question 484: Answer and Explanation

Question: 484

A firm has been taken to arbitration by a customer. The disputed amount is $47,400. Which of the following is true?

• A. There will be a hearing, and the arbitrator's decision is final.
• B. There will be a hearing, and the decision may be appealed.
• C. There will be a hearing with up to three arbitrators.
• D. There will not be a hearing, and the decision may not be appealed.

Correct Answer: D

Explanation:

D: There will be no hearing unless specifically requested by a public customer, and the decision of the arbitrator is final and binding. Claims under $50,000 will be resolved in simplified arbitration.