Question
Jones files a lawsuit against BigMoney, LLC, a brokerage firm registered with the Securities and Exchange Commission. In the lawsuit the plaintiff alleges that BigMoney
Jones files a lawsuit against BigMoney, LLC, a brokerage firm registered with the Securities and Exchange Commission. In the lawsuit the plaintiff alleges that BigMoney violated the Securities Exchange Act by engaging in fraudulent excessive trading. BigMoney files a motion to dismiss the lawsuit because Jones had signed an agreement with BigMoney consenting to the terms of the agreement which stated all disputes between the parties must be resolved through arbitration. Jones argues that because of the nature of BigMoney's conduct she is entitled to file a lawsuit and the arbitration clause in the agreement should be nullified. Which party in this lawsuit is right and why?
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