Most standard form purchase agreements include two alternative dispute resolution provisions: arbitration and mediation clauses. ADR stands for Alternative Dispute Resolution.It refers to processes that are "alternatives" to having a trial to resolve your dispute. A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts. CAR mediation and arbitration provisions are designed to promote efficient and cost-effective resolution of disputes in real estate transactions. Contra Costa County. "California law reflects a strong public policy in favor of arbitration as a relatively quick and inexpensive method for resolving disputes.