Is it compulsory to pass the Ethics section to pass the exam? Thanks
lol. I hope not.
Yups it is 
You can still pass the exam if you fail ethics, but you have to do REALLY well in the other sections. And, if you are close to the edge, they’ll fail you if you failed ethics. If two people got a 69%, one passed ethics and one failed ethics, the one who failed ethics will fail exam.
is it negotiable?
There is a subjectivity to it…the exams are graded mathematically right away, then they layer in all sorts of subjectivity on top of it. So yes, its negotiable in that they may negotiate about it with eachother, but they will certainly not involve you in the negotiations…
Ethics is very important to the CFAI. I believe that if you fail ethics - you fail the test, hands down. No pressure
Smarshy said it best, except for the 69% part. We never know the exact MPS. Only your cumulative score matters, you don’t have to pass any particular section of the exam. A strong ethics score may push a borderline exam to a pass. Keep in mind that ethics has the second-highest point allocation after FSA, so you better crush the rest of the exam if you fail ethics. http://cfainstitute.org/cfaprog/courseofstudy/topicareaweights.html