Question: According to the Code of Arbitration, excluding claims alleging discrimination or sexual harassment, arbitration of disputes is mandatory for all of the following except:
A. Disputes between two member firms
B. Disputes brought by member firms against customers, if required by contract
C. Disputes brought by member firms against customers for claims in excess of $25,000
D. Disputes brought by associated persons against customers, if the customer consents
Correct Answer: C. Disputes brought by member firms against customers for claims in excess of $25,000
Rationale: Arbitration of disputes involving customers is mandatory only if the customer consents to arbitration or if required by contract. Claims alleging discrimination or sexual harassment cannot be arbitrated, except by agreement of all disputing parties.