A federal trial court judge in Fayetteville, Arkansas must interpret Arkansas state law. The Arkansas Supreme Court has previously interpreted this law. No federal court has interpreted this law. Will the federal trial judge be required to follow the precedent set by the Arkansas Supreme Court?

A. Yes, this is a “civil law” system, not a “common law” system.
B. No, the federal trial court exclusively follows laws from the U.S. Supreme Court.
C. No, because federal trial court judges in Arkansas exclusively follow precedent of the 8th Circuit Court of Appeals.
D. Yes, the Arkansas Supreme Court issues binding precedent for the interpretation of Arkansas law.
E. No, because federal judges may only apply federal law when deciding a case.

Answer: D. Yes, the Arkansas Supreme Court issues binding precedent for the interpretation of Arkansas law.

Business

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Which of the following organizations requires publicly owned companies to be audited by independent accountants (CPAs)?

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A person who executes customer orders to buy and sell securities on the floor of the NYSE is called a:

A. supplemental liquidity provider(SLP). B. designated market maker(DMM). C. runner. D. Floor broker. E. market maker.

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