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Legalease
Legalease, Lawyer
Category: Legal
Satisfied Customers: 16288
Experience:  15 years exp all aspects of general law
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I'm in the process of setting up a new account with a brokerage

Customer Question

I’m in the process of setting up a new account with a brokerage firm in NY and have been asked to sign a pre-dispute arbitration agreement. Is this typical? Can I refuse and still open the account
Submitted: 6 months ago.
Category: Legal
Expert:  Legalease replied 6 months ago.
Hello there ---The company has the right to require arbitration in a contract if they wish to do so and your only recourse is to walk away. However, the law requires that any arbitration decision be appealable into the local court if you are not satisfied with the outcome so that is where you still have your right to a jury trial if you are not happy with the arbitration decision in any case. I will say that arbitration is not a bad idea in many cases -- so long as it is arbitration through a nationally recognized firm and you have an input into the arbitrator selected, they usually draw from retired judges and people in the industry who actually have some intelligence in such matters rather than an overworked judge in a small state courtroom. Arbitration has been used very successfully in the construction industry and in their contracts for many years. If you are getting a fairly decent rate with this firm you may want to go forward with it --- however, if you look into other brokerage firms I think you are going to find that many of them have such arbitration clauses in their contracts these days in an effort to keep costs down. -Please let me know if you have further questions. If not, can you please press a positive rating above so I will be paid for my time. I am paid nothing unless you press the middle, or the fourth or fifth star to the right of the middle star above. THANK YOU VERY MUCH-MARY
Expert:  Legalease replied 6 months ago.
Hello there ---If you have no further questions, can you please press a positive rating so I will be paid for my time for assisting you with these questions? I am paid NOTHING unless you press a positive rating above in the ratings section (pressing the middle star, or the fourth or fifth star to the right of the middle star are all positive ratings). Pressing a positive rating will not cost you any additional money -- it is just the trigger to Just Answer to pay me for my time. THANK YOU VERY MUCH !!!-MARY

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