Ex-Amazon Seller Seeks to Vacate Arbitration Award as ‘Completely Irrational’
Former Amazon third-party seller Zongheng Domain Network wants U.S. District Judge Jennifer Rochon for Southern New York in Manhattan to vacate an arbitration award in Amazon’s favor because the arbitrator’s ruling is “completely irrational, manifestly disregards the law" and “violates…
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a strong public policy,” said the seller’s memorandum of law Tuesday (docket 1:23-cv-03334) in support of its amended vacatur petition. The arbitrator wrongly found Section 2 of Amazon’s contract with the seller is “a valid liquidated damage clause and enforceable,” said the memorandum. Rochon’s July 20 order denied the seller’s motion to remand the vacatur petition to New York County Supreme Court where it originated before Amazon removed it (see 2307210035). The seller seeks recovery of $508,000 in sales proceeds that Amazon seized, and the arbitrator let Amazon keep, when it deactivated the seller’s online store for allegedly manipulating customer product reviews (see 2305080023).