Unless you are prepared to pay cash in one payment, you will sign an arbitration agreement to buy that car. The New Car, Used Car, Wheelchair, and Farm Equipment Lemon Laws provide a legal remedy for buyers or lessees of new and used cars that turn out to be lemons.A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts. (a) Gather Documents. Bring to the hearing records of everything pertaining to the purchase and the problem, including a copy of the purchase contract. Typically, an arbitration clause is located towards the end of a contract. If the contract does contain the clause you may proceed to step 2. Are you going to award Dorothy damages to her vehicle? Fill out the Judgment of Award under the fact scenario given. This month we discuss what the Rule means for arbitration agreements ("arbitration agreements" or "Agreements") already in effect on March 19.