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Amazon restricts some preorders due to contract dispute

A contract is a powerful tool; it can seal the deal between two companies or business partners. In Denver, Colorado, business owners know that a business contract solidifies the partnership between companies or a customer and a company. This is why contracts are drafted: to protect the integrity of the company while keeping the best interests of those who are part of the deal. Once the contract is signed, the signees must follow what is written in the agreement in order to avoid disputes that can lead to litigation.

Two big players in the video business - Amazon and Warners Home Video - are going through a new contract dispute. Based on a report, Amazon has decided to restrict preorders for some Warner movies like '300' and 'The Lego Movie' until the dispute is settled. Amazon is also involved in another contract dispute with the Hachette Book Group. Amazon has decided to stop pre-orders of Hachette products and suggested their customers buy these products from third party sellers. Amazon stated that contract disputes are normal but Warner Home Video and Amazon have not yet issued any public statement on when their dispute is going to end.

Contract dispute can be settled through negotiations in order to avoid costly litigation. If both parties are willing to collaborate and talk through their differences, they can settle the dispute peacefully. But, business owners need to review the terms of the agreement before deciding on how to proceed with the case.

If the case heads to litigation, it is imperative for business owners to seek legal representation. An attorney has the skillset to know how to protect the best interests of the company and prevent damage that might harm the company's image and reputation.

Source: Arstechnica, "Amazon flexes its muscles again in new contract dispute with Warner Bros.," Casey Johnston, June 11, 2014

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