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

question 181

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. If Ellen and James did mediate this dispute, their mediator:

• A) would have to be an attorney
• B) would have to represent one of them
• C) could be anyone at all, in any state
• D) might have to be professionally trained
• E) must be professionally trained according to federal law

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Definitions:

Mid-Sized Companies

Businesses that occupy the middle ground in terms of their revenue, number of employees, and overall market presence, between small and large companies.

Clan Culture

An organizational culture characterized by a family-like atmosphere, where loyalty, tradition, and personal commitment are valued.

Socialization Process

The method through which individuals learn the norms, behaviors, and social skills appropriate to their society or culture.

Clan Culture

A corporate culture model that emphasizes collaboration, trust, and a family-like atmosphere within an organization.