November 09, 2011
Topic: Answers Too
In this paper, I will summarize the arguments between Toys R Us and Amazon.com.
I will also summarize the rationale given by the judges for their decisions in this argument.
1. After a lengthy trial, the Court found that defendant Amazon.com had breached an agreement it had entered into with plaintiff ToysRUs.com LLC ("Toys R Us"), by permitting third parties to sell toys on Amazon's web site. Finding that this breach went to the substance of the parties' agreement - which as interpreted by the Court provided that Toys R Us was to be the sole third party toy retailer on …show more content…
Disadvantages are that they lost Toys R Us as a retailer on their site and they could be making more money if they had entered into a different agreement. They are also losing all the percentages from all the other small companies that purchase toys through Amazon.com. They could have steered other marketers that were reluctant to take advantages of their website because of the battle that embroiled between them and Toys R Us.
3. I would have recommended that Amazon could not enter into an agreement with Toys R Us exclusively, but allow them to only let other outlets that sell Toys R Us toys along with Toys R Us. Because, this would allow Amazon to still honor the agreement it entered into with Toys R Us and still show a substantial profit. Amazon could be seeing the profits from the other retailers selling Toys R Us products. Toys R Us would still see the profits from the sales of other retailers and they would not undersell Toys R Us products. They entered this agreement before they could realize the consequences and the profits that could be made. They entered it knowing what it could lead to, but did not think ahead to what the future could and would hold for an agreement. I am sure if they could do it all over again they would think a lot further into the future and what it would hold for both companies. Unfortunately, that chance has come and gone and there are no redo, because it went so far beyond the point of return during the long and lengthy