Arbitration agreements in nursing homes are contracts that residents or their representatives may be asked to sign during the admissions process. This agreement removes a senior's right to take the nursing home to court in any cases of negligence, abuse, or other wrongdoing.Are nursing home arbitration clauses legal and binding? PKSD Law explains what you need to know about these controversial agreements. Add the name of the selected residents in the resident box on the Arbitration screen and identify the reason the resident is being selected. In fact, it is against the law for nursing homes to require you to sign these agreements as a contingency of admission. In the nursing home context, a defense attorney can easily establish that an admis- sion agreement was executed for the res- ident's benefit. Often, nursing home residents and their families unknowingly sign contracts agreeing to mandatory arbitration in the event of any legal action. Your agent fills out the reams of paper that seem necessary for your admission, including a binding Agreement to Arbitrate. Exemplar Arbitration Clauses.