Predispute Arbitration Agreements
Broker-dealer customer account agreements generally contain a predispute arbitration clause requiring customers to arbitrate all future claims. The parties agree to arbitrate any disputes, should they arise, rather than file suit in a court of law.
FINRA requires any predispute arbitration clause to be highlighted and immediately preceded by the following language:
This agreement contains a predispute arbitration clause. By signing an arbitration agreement the parties agree as follows:
• All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
• Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modi