Hacker News new | ask | show | jobs
by TheSocialAndrew 1661 days ago
They almost definitely have an arbitration clause in the agreement, since companies like Amazon, eBay, Airbnb wish to avoid going to court altogether so as not to establish a precedent. This could be favorable to you because they are more likely to settle without either party incurring a lot in legal expenses, but on the other hand it's likely that the arbitration clause asks that each party split the arbitration cost (typically under $5,000 each) regardless of the outcome.

I'm not an attorney but I've dealt with situations like yours. If I were you, I would pursue the arbitration because they are likely to settle.
1 comments
nikkwong 1661 days ago
Yeah, I have talked to other sellers and lawyers and Amazon would take it to arbitration if I decide to pursue. I believe the cost of going to arbitration against them is $8000 in Seattle; because I have to pay the arbitrator, my own lawyer and other related fees. I should have specified above that I'd be going to arbitration against them and not to court--I didn't expect anyone to read my comment.

Unfortunately though, I've heard from most sellers in a similar situation that Amazon almost always wins in these arbitration cases. I'm not sure if that's true or not but the amazon sellers forums are ominous on this point. I posted this question there a month ago [0] and invoked a lively debate; but the gist was that it's risky and I could easily expect to lose. How unfair is that.

Maybe everyone on the forum is wrong though and they would be likely to settle. I honestly have no idea because I've heard every manner of different answers.

https://sellercentral.amazon.com/forums/t/suing-amazon-for-n...

link
kingcharles 1661 days ago
I expect Amazon to bring an entire legion of lawyers against you in a situation like this and basically bury the arbitrator in paperwork.

Does the contract say if Amazon would have to pay all your fees if you win? Or would you be out either way. Usually in court in the USA you often lose all your legal costs even if you do win.

link
nikkwong 1661 days ago
I feel like it would probably somehow go poorly like you're outlining. I have a naive version in my head as to how this could work out well; but I imagine in reality that this would be as nightmarish and stressful as possible, ending in a loss and putting me even further into the hole financially.

It's just so messed up. $24K of my money that they're holding; that's not all profit for me. It probably cost me at least $12K to generate that $24k. So I'm already so far in the hole that I can't afford to keep going deeper.

link