Which of the Following Is True of Arbitration Procedures

question 41

Multiple Choice

Which of the following is true of arbitration procedures?

• A) Arbitration is a voluntary procedure that cannot be forced on the parties.
• B) Judicial review of the arbitrator's award occurs in most cases.
• C) The award resulting from the voluntary arbitration procedure is final.
• D) If the arbitrator made erroneous rulings during the hearings, the award can be set aside.
• E) The arbitrator's award is binding on the parties only if there was no error of law on the part of the arbitrator.

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Definitions:

Stock Investments

Financial assets representing ownership interest in companies; shareholders may receive dividends and have voting rights.

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits in the form of cash.

Net Income

The remaining profit for a company after removing all costs and tax obligations from the overall revenue.

Insignificant Influence

A situation where an investor does not have significant control or influence over the operations and management of a company in which they hold an investment.