First, find out if your purchase is eligible for arbitration, then go to your Purchases and select the vehicle you want to arbitrate. A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts.Most standard form purchase agreements include two alternative dispute resolution provisions: arbitration and mediation clauses. Mandatory arbitration agreements can now be find in virtually every contract consumers sign. Most CAR forms follow the same dispute resolution process. The steps are set forth in the diagram above and in word form below. Lemon law arbitration is a route that tends to stack the cards against the consumer. Tesla Opt-Out California Attorneys. 114 votes, 30 comments. When you sign the papers for your car, the last part of the contracts is an arbitration agreement.