Simplified Arbitration is a method of resolving disputes over $50,000 or less. There is no hearing; one arbitrator reads the submissions and renders a final decision.
Applying "Simplified Arbitration" to Securities Exams:
Arbitration is used by FINRA to settle civil (money) disputes. A customer must agree to arbitration by signing an arbitration agreement. Simplified arbitration is similar to small claims court. If the dispute is for $50,000 or less, a single arbitrator replaces a full panel; he or she reviews the dispute and renders a binding decision. There are no appeals to arbitration or simplified arbitration.