Amazon.Com Case Study

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IT ELECTIVE
(E-BUSINESS)

Chapter 1
Case 1
AMAZON.COM

Angeles, Catherine Marie
Cabral, John Kevin
Pangilin, Kristel Mae
Sabater, Shenalou

1. New Jersey judge ruled that Amazon.com Inc. violated its agreement to give toy retailer Toys"R" Us Inc. the exclusive right to sell toys and baby products on Amazon's Web site. In the ruling,New Jersey Superior Court Judge Margaret Mary McVeigh said Toys "R" Us can sever theagreement it signed with Amazon in August 2000, in which it agreed to sell toys on Amazon.com'sWeb site, effectively putting Amazon in control of the Web address www.toysrus.com. The rulingpaves the way for Toys "R" Us to operate the Web site independently. Judge McVeigh deniedmonetary damages to both parties.Toys "R" Us filed suit in the New Jersey state court in May 2004 alleging Amazon breached thecontract. Amazon countersued in June 2004, alleging the toy retailer failed to keep items in stockand otherwise adhere to their agreement.The Amazon was disappointed to the judge findings they said that they strongly disagree with the judge's ruling, and they are in the process of reviewing a number of different options Regardless of the outcome and they remain committed to ensuring a great selection of toys for our customers atgreat prices. For its part the Toy R Us said that the company are preparing for the decision and iscommitted to providing customers online access to its web store. The Amazon spokesman said that the company disagrees with the suggestion that other retailers will be wary of working withit. They said that this ruling is specific to Toys "R" Us and it really doesn't have any impact on otherrelationships with merchants and partners.

The judge found its ruling to be fair because amazon.com did not have the necessary reports that were required to be given yearly to Toys r us as part of the agreement, so after 2 years of battling on March 1, 2006 the Judge ruled against Amazon.com and gave Toys R Us the win and settled for...
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