ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


College and Career Videos 565 videos

College Tour: University of Redlands
14258 Views

Get ready to sing some nonsense words, because today we're taking a look at the University of Redlands. You'll know what we're talking about soon e...

College Tour: University of Chicago
123 Views

Grab a char-dog and watch out for flaming birds, it's time to take a tour of the University of Chicago. Oh and erm, if you would sign this waiver f...

College and Career Goals 1.3 The Graduation Maze Runner
104 Views

We're talking about the tasks you'll need to complete before graduating here...not a literal life-threatening maze. Colleges aren't that cruel...

See All

Finance: What is Arbitration? 6 Views


Share It!


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...

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11939 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...