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

question 140

Multiple Choice

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. Assume that James appeals the decision of the arbitrators to a state court. He wants to argue that using the New York Stock Exchange rules was unfair to him. Most likely, James will:

• A) win hands down; the rules are unfair
• B) win, if he shows that the rules favor stockbrokers
• C) win, based on the legal doctrine of res judicata
• D) lose, because the arbitrators were acting like judges
• E) lose, because the courts routinely uphold arbitration proceedings

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Definitions:

Stringent Demands

Requirements or conditions that are very strict, precise, and difficult to meet, often imposed in a work setting or by regulatory bodies.

Restricted Control

Restricted control refers to limitations placed on the autonomy or freedom of individuals or organizations, often for regulatory or safety purposes.

Preventive Stress Management

A strategy aimed at reducing stress levels through proactive measures and stress resilience-building techniques.

Goal Setting

The process of identifying something that you want to accomplish and establishing measurable objectives and timeframes to help you achieve it.