Tjart v. Smith Barney, Inc.

Every firm in the securities industry requires its agents to register with a self-regulatory organization (SRO), such as the New York Stock Exchange or the National Association of Securities Dealers, and be bound by the rules promulgated for the SRO members. This is accomplished by having applicants sign a “Uniform Application for Securities Industry Registration or Transfer,” commonly called a “U-4.” This form contains an agreement to arbitrate “any dispute, claim, or controversy that may arise between [the applicant and her] firm . . . that is required to be arbitrated under the rules ...…