Amazon vs. Toys R Us

695 Words3 Pages
AMAZON vs. TOYS R US Task 1 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 toys to be sold on its z Shops Web pages). Amazon.com responded by filing a countersuit. Prepare a report of about 200 words in which you summarize the current state of the litigation.  Amazon Amazon signed a contract with Toys R Us which shows that Amazon can sell the toys of Toys R US company. But Amazon broke the contract by selling toys of other companies. So it was wrong. But on the other hand Amazon also affiliated with the Z shop which was affiliated with many small shops. So that we can say that Amazon was right at its place because if they only sell the products of Toys R US they could never earn the profit from other brands. Amazon cannot give a Long term commitment in a world where the technology is advancing almost on a daily basis is difficult to maintain. That is why Amazon right.  Toys R US Toys R US had a contract with Amazon. But if Amazon sells only the products of Toys R Us then the company will not get more profit and it cannot be part of others profit too. So that it is wrong. They should discuss about this matter with Amazon first. But there are many part to this agreement one part of the deal Amazon would be in charge of the online business while Toys R Us would handle the toy buying and inventory management. Whether or not this statement from Toys R US is true or not but Amazon is not upholding a 10-year exclusive contract with Toysrus.com. They cannot affiliate with other brands. Task 2  Outline the advantages and disadvantages that Amazin.com would have considered before it made the agreement with Toys R Us to limit competing toy sales. In about 200words, summarize these advantages and disadvantages. Advantages : • There are a lot of

More about Amazon vs. Toys R Us

Open Document