Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

What type of arbitration involves a single arbitrator reviewing all evidence?

1. Traditional arbitration

2. Expedited arbitration

3. Simplified arbitration

4. Binding arbitration

The correct answer is: Simplified arbitration

Simplified arbitration is characterized by the involvement of a single arbitrator who reviews all the evidence presented by the parties. This type of arbitration is designed to be quicker and more cost-effective than traditional arbitration, making it suitable for disputes that may not require extensive procedural steps. In simplified arbitration, the process is streamlined, allowing for a faster resolution of issues while still ensuring that both parties have the opportunity to present their cases. Traditional arbitration may involve multiple arbitrators and a more complex process, while expedited arbitration also focuses on a quicker resolution but may still have additional procedural rules. Binding arbitration is a term that generally implies that the decision made by the arbitrator is final and legally enforceable, but it does not specify the number of arbitrators or the review process. Simplified arbitration is specifically designed to ensure efficiency with a single arbitrator managing the evidence and decision-making.