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? Please reference the Consumer Rules and the Consumer Due Process Protocol.An arbitration agreement is a legally binding agreement that offers an alternate dispute resolution between two parties or more. A mandatory binding arbitration clause in a car loan states you agree to resolve any disputes with an arbitrator rather than the courts. It included an arbitration provision between him and the car dealer that he couldn't skip over. Mandatory arbitration agreements can now be find in virtually every contract consumers sign. Arbitration is a alternative dispute resolution (ADR) in which an arbitrator renders a decision to resolve a dispute between parties. Learn what Arbitration Clauses are with examples and samples. We've created a guide to the most common clauses found in contracts to explore in 2022. Arbitration is a selection of a dispute resolution forum.