Export Compliance Daily is a Warren News publication.

Ex-Seller Cites No Federal Authority to Back its Vacatur Petition, Says Amazon

Shenzhen Zongheng Domain Network, a former Amazon third-party seller, failed to establish grounds under federal law for vacating an arbitration award in Amazon’s favor, said Amazon’s reply Friday (docket 1:23-cv-03334) in U.S. District Court for Southern New York in Manhattan…

Sign up for a free preview to unlock the rest of this article

Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

in support of its cross-motion to confirm that award. Zongheng 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). Zongheng’s latest brief “inexplicably fails to address any of Amazon’s arguments in support of confirmation and in opposition to vacatur,” said Amazon’s reply. “Nearly every sentence” of Zongheng’s filing previously appeared in its memorandum of law in support of its vacatur petition, it said. Zongheng’s brief “repeats its prior arguments, in large part literally word for word,” it said. Arguments to which a litigant fails to respond are waived, which is “fatal” to Zongheng’s vacatur petition, said Amazon. Zongheng doesn’t contest that federal law provides the legal standards for the motions to confirm and vacate the final award, it said. But Zongheng cites no federal authority that would provide a basis to vacate the final award, it said. Zongheng cites no federal authority at all, relying on New York state court citations that are not “precedent” in the Southern District of New York, and don’t, in some cases, even concern the Federal Arbitration Act, “which governs this dispute,” it said.