Cases Chapter 1 - Introduction to Electronic Commerce

1479 Words Jul 16th, 2013 6 Pages
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
…show more content…
3. In about 200 words, outline specific recommendations you would have made to Amazon.com in 2004 for negotiating a settlement with Toys R Us that would have benefited both companies and avoided litigation.
Answer: For the part of Toys R Us, it has been best done to talk to Amazon.com before directly filing a case against the site in respect to partnership relationship of both parties. For the part of Amazon.com, they should have been more sensitive and aware if they are violating agreements to their business partners so that it wouldn’t have ended to complication and having a case filed by their business partners. To settle the conflict between the two parties, the Amazon.com should have responded by accepting terms of agreements provided by the Toys R Us. Since Toys R Us is one of Amazon.com’s business partners, then they will be liable enough to consider terms of agreement accepted by both parties. By doing so, they could have avoided litigation and did not ruin their business relationship with each other.
4. In 2005, Circuit City and Amazon.com agreed to end their 4-year-old partnership in which Circuit City customers could place orders on Amazon.com’s Web site. In about 200 words, describe why this partnership, which made sense during the first wave of electronic commerce, might no longer be good for the two companies.
Answer: One possible reason follows: during the first wave of electronic
Open Document