However, if both parties initial the arbitration clause, they must submit any dispute arising out of the purchase agreement to arbitration. ADR is the common term for different ways of settling a dispute.ADR includes mediation, arbitration, neutral evaluation, settlement conferences. Free Consultation - Call (510) 747-8034 - Richard H. Poulson helps companies with business matters in Mediation and Arbitration cases. Small Claims Court is an option for those who are filing a limited civil case. Small claims cases are resolved quickly and inexpensively. A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts. The revised language now states "Seller agrees to pay the obligation of Buyer to compensate Buyer's Broker under a separate agreement (CAR Form SPBB attached). CAR mediation and arbitration provisions are designed to promote efficient and cost-effective resolution of disputes in real estate transactions. This pre-printed, non-negotiable language means California car buyers cannot use the public court system to sue a dealer for fraud, breach or contract.