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Finance: What is Arbitration? 5 Views


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Description:

What is Arbitration? Arbitration is like court for the financial world. It is used to settle disputes between investors and their brokers. An investor can file a claim that leads arbitration, much like a lawsuit would lead to a court hearing.

Language:
English Language

Transcript

00:00

finance a la shmoop what is arbitration? was it Shakespeare who mused about [Shakespeare on stage discussing arbitration]

00:08

killing all the lawyers, wasn't that Henry the sixth or something mmm well if he

00:12

done so well that'd make arbitration not necessary...So first what is arbitration?

00:17

well basically it's the adjudication of a case outside of the formal normal

00:22

court system which is massively clogged in the United States like it needs a [Man unclogging toilet]

00:28

million gallon enema kind of clogged... The cost of fully adjudicating cases has

00:32

become astronomically expensive and time-consuming and filled with silly [Contract loopholes highlighted]

00:37

loopholes that make getting to a real just conclusion painful if not

00:42

impossible so it has become common practice for parties entering a

00:45

partnership or a contract in whatever form to agree to arbitration if a big

00:50

fat hairy conflict arises down the road you know...In arbitration both sides agree [A hairy monster appears in the woods]

00:55

to hiring a separate judge usually a retired judge from the normal court

00:59

system.. In arbitration

01:03

everyone simply relies on the arbitrating judge to be fair lots of [Judge stamped fair]

01:09

silly loopholes go away and "justice" in whatever form is

01:14

arrived at well hopefully faster and if that doesn't work well you can always do [Shakespear carrying a lawyer on a ship and throws him overboard]

01:18

things to Shakespeare way...

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