All arbitration claims must be presented before the close of business on the day of sale. First, find out if your purchase is eligible for arbitration, then go to your Purchases and select the vehicle you want to arbitrate.So my question is, is this something that's common and I shouldn't be concerned about it, or should I back out from buying the vehicle? Arbitration is a process that involves using a neutral third-party to review the evidence in a lemon law case. The Texas lemon law is in place to protect auto buyers in the state of Texas that purchase a vehicle with an original warranty from a dealer or manufacturer. ONLINE PROPERTY TAX ARBITRATION SYSTEM - AVAILABLE NOW Visit Texas. An arbitration agreement is a legally binding agreement that offers an alternate dispute resolution between two parties or more. Car dealers that don't require you to sign an arbitration agreement when buying a car. A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts.