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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?
Decision Avoidance
The phenomenon where an individual or group deliberately chooses not to make a decision, often to avoid responsibility or negative outcomes.
Certainty Effect
The tendency for people to overweight outcomes that are certain relative to outcomes that are merely probable.
Entity Theorists
Individuals who believe traits and abilities are fixed and unchangeable.
Incremental Theorists
People who believe that abilities and intelligence can grow and change through effort and experience.
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