First, find out if your purchase is eligible for arbitration, then go to your Purchases and select the vehicle you want to arbitrate. 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. Arbitration is a process that involves using a neutral third-party to review the evidence in a lemon law case. Pennsylvania's Automobile Lemon Law is designed to protect Pennsylvania consumers from unsafe and defective new cars. Companies often try to trick customers into binding arbitration agreements.