This Comment examines the use of pre-dispute arbitration clauses in investment contracts. The author argues that, while the United States Arbitration Act mandates the enforcement of arbitration agreements, many courts have refused to enforce investment contract arbitration clauses fearing a lack of investor protection. The author reviews the use of arbitration in the securities industry, as well as the judicial decisions that have impacted its use. The author concludes that, with certain changes in the structure of these clauses, securities industry arbitration clauses should be enforced in order to protect investors and provide a more efficient method of resolving securities disputes.
Audrey V. Nelson,
Section 10(b) and Rule 10b-5 Federal Securities Law Claims: The Need for the Uniform Disposition of the Arbitration Issue,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol24/iss1/9