Arbitration clause is a contractual clause that specifies arbitration as the method for resolving disputes, avoiding court litigation. Johnny Luna signed an binding mandatory arbitration agreement as part of his employee manual when he worked for Poly-America in Mont Belvieu, Texas.Our original ClauseBuilder online tool assists individuals and organizations in developing clear and effective arbitration and mediation agreements. Example - All disputes arising out of this contract will be submitted in first instance to an arbitral tribunal of the American Arbitration. Association. Check out our detailed guidance on drafting an arbitration clause specifically tailored to your contract, here, and a sample clause, here. How do I choose arbitration? Learn More About the Arbitration Process in Texas and How It Helps to Resolve Disputes Outside of a Courtroom Setting.