Cases Chapter 1 - Introduction to Electronic Commerce
CASES
CHAPTER 1 - INTRODUCTION TO ELECTRONIC COMMERCE
CASE 1: AMAZON.COM
Required:
1. In 2004, Toys R Us sued Amazon.com for violating terms of the agreement between the companies (specifically, Toys R Us objected to Amazon.com’s permitting Amazon Marketplace retailers to sell toys) (Note: when the lawsuit was filed, Amazon Marketplace was called “zShops”). Amazon.com responded by filing a countersuit. After more than two years of litigation, a New Jersey Superior Court judge ruled that the agreement had been violated by both parties. The judge ordered that the agreement be terminated and denied both companies’ claims for monetary damages. Use your favorite search engine and the links in the Online Companion for Case C1 to review the judge’s findings and ruling. Prepare a report of about 200 words in which you summarize each company’s arguments and the judge’s rationale for her decision. Conclude the report by stating how you would have ruled on the case. Support your ruling with logic and facts.
Answer: Amazon.com has been known in the web industry for building a business name that is a powerful one. Jeff Bezos who was intrigued by the rapid growth of internet look for a way to capitalize and that ended to calling his online bookshop as Amazon.com. Years later, Amazon.com has expanded its structure by having business partners such as Toys R Us. During 1999 shopping holiday season, Toys R Us had experienced difficulties in selling online and making deliveries on time that’s why Toys R Us signed an agreement with Amazon.com in 2000 that placed Toys R Us products on the Amazon.com web site. Amazon.com agreed not to sell toys itself or on behalf of other partners for whom it might provide online sales services in the future but in 2004, Toys R Us claimed that Amazon.com violated the said agreement. Toys R Us objected to Amazon.com’s permitting Amazon Marketplace retailers to sell toys. Two years after, the judge had concluded that the two parties violated the
CHAPTER 1 - INTRODUCTION TO ELECTRONIC COMMERCE
CASE 1: AMAZON.COM
Required:
1. In 2004, Toys R Us sued Amazon.com for violating terms of the agreement between the companies (specifically, Toys R Us objected to Amazon.com’s permitting Amazon Marketplace retailers to sell toys) (Note: when the lawsuit was filed, Amazon Marketplace was called “zShops”). Amazon.com responded by filing a countersuit. After more than two years of litigation, a New Jersey Superior Court judge ruled that the agreement had been violated by both parties. The judge ordered that the agreement be terminated and denied both companies’ claims for monetary damages. Use your favorite search engine and the links in the Online Companion for Case C1 to review the judge’s findings and ruling. Prepare a report of about 200 words in which you summarize each company’s arguments and the judge’s rationale for her decision. Conclude the report by stating how you would have ruled on the case. Support your ruling with logic and facts.
Answer: Amazon.com has been known in the web industry for building a business name that is a powerful one. Jeff Bezos who was intrigued by the rapid growth of internet look for a way to capitalize and that ended to calling his online bookshop as Amazon.com. Years later, Amazon.com has expanded its structure by having business partners such as Toys R Us. During 1999 shopping holiday season, Toys R Us had experienced difficulties in selling online and making deliveries on time that’s why Toys R Us signed an agreement with Amazon.com in 2000 that placed Toys R Us products on the Amazon.com web site. Amazon.com agreed not to sell toys itself or on behalf of other partners for whom it might provide online sales services in the future but in 2004, Toys R Us claimed that Amazon.com violated the said agreement. Toys R Us objected to Amazon.com’s permitting Amazon Marketplace retailers to sell toys. Two years after, the judge had concluded that the two parties violated the