Amazon Sellers Must Indemnify & Defend Any Claims That Arise Under the Business Solutions Agreement
Who cares? Who cares if Amazon gets sued? I certainly don’t care, unless of course the product was provided by one of our sellers or one of our clients.
In the TOS, which is really called the Business Solutions Agreement, you agree to indemnify and defend Amazon if Amazon gets sued for a product that you either sold to Amazon as a vendor, or you sold as a third-party seller. It’s a rock-solid agreement. You can’t get out of it. It’s in every single one of your contracts with Amazon. Indemnify and defend.
Why do you need to know about this? Because Amazon will often get sued and you won’t get named, and then you will receive a notice from Amazon that there’s been a claim or a lawsuit filed, and you’re responsible for it.
Now, the letters are written in a kind of crafty way where Amazon’s lawyers will often write they’re seeking indemnification, which means they want you to pay for the lawyers that Amazon has chosen. But further down in the letter, it says, “indemnify and defend.” What does this all mean? It means you can pick the lawyers to represent Amazon to defend Amazon and control a few more things. You can control your costs because the lawyer you hire, including us, will likely cost a whole lot less than the lawyers Amazon chooses. Number two, you get to control litigation and try and settle it quickly and not allow the lawyer’s bills to pile up, and pile up, and pile up.
That’s what you need to know in today’s video. You have an obligation to indemnify and defend Amazon, and you also have the ability to take control of that situation by choosing the lawyers that will defend Amazon and settle the claims to cap your costs.
Want to learn more about litigation? Contact me by phone. You can call me anytime, you can email me anytime, and you can submit your case on our website, 24 hours a day, seven days a week.
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