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by John DiGiacomo

Partner

Internet Law

Practically speaking, the answer is “no.” As many know, Amazon’s Terms of Service and other agreements require that any disputes be submitted to binding private arbitration (as opposed to resolution through the process of a public court proceeding). Through movies, television, and literary depictions and descriptions, many people have some sense of how court proceedings function. The trial of the issues is conducted in a courtroom setting, with a judge and, sometimes, a jury governed by statutory Rules of Evidence and other procedures. Generally speaking, litigants in public court cases have a right to appeal any negative aspect of the final verdict from a court case. Those appeals are taken to what are most often called Courts of Appeal.

By contrast, arbitration proceedings are conducted in spaces more akin to conference rooms. Further, there is never a jury, and there is no judge. Rather, the matter is decided by arbitrators, from one to a panel of three arbitrators. Also, while statutory Rules of Evidence and other procedures are used, such are used with more flexibility. Importantly, arbitration proceedings and results are private AND are generally non-appealable.

So, for advocates of arbitration, these are the two primary benefits of arbitration: privacy and a general lack of appealability. Two other notable benefits are speed and lower cost. Court cases can take years to complete, and years can be added because of potential appeals. In theory, because arbitrations are finished more quickly, arbitrations are also less expensive.

Thus, when a person or business submits an Amazon dispute to arbitration, the result of that arbitration is final. This applies to all parties, so if the arbitration award goes against Amazon, Amazon is also barred — generally — from seeking any sort of appeal.

Are there exceptions?

Yes, there are some exceptions to this general rule of non-appealability. However, they are very rare and are difficult to prove. This is why we can say that, as a matter of practice, Amazon arbitration awards are non-appealable.

The typical three exceptions involve situations where one or more arbitrators or the proceedings were corrupt, evidently and obviously partial to one side, or the arbitrators engaged in some sort of misconduct. For example, evidence that an arbitrator was bribed or under duress in some manner would be a valid basis for appeal. However, no basis for appeal would be found for an argument that the arbitration ignored certain evidence or misapplied some law.

There is also a fourth basis for appeal where one party argues that the arbitrator and/or the entire proceeding exceeded the powers granted. This is often an argument that the contract or other facts in the case did not permit arbitration at all or that some issue in the case was not subject to arbitration.

Finally, allowable appeals can be had for what might be called “technical matters.” An example might be an appeal over an obvious mathematical error in calculating the award due to one party.

Contact the Amazon Resolution Attorneys at Revision Legal

For more information, contact the experienced Amazon Resolution Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

The Federal Arbitration Act and the Limits of Judicial Review

The Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq., governs virtually all private arbitration in the United States, including Amazon’s arbitration process. Section 10 of the FAA sets out the exclusive grounds on which a federal court may vacate an arbitration award. Those grounds are narrow by design. Congress deliberately limited judicial review of arbitration awards to preserve the speed, finality, and privacy that make arbitration an attractive alternative to litigation.

Courts have consistently reinforced this narrow reading. In Hall Street Associates, LLC v. Mattel, Inc., 552 U.S. 576 (2008), the Supreme Court held that parties cannot contractually expand the grounds for vacatur beyond what § 10 permits. This means that even if you and Amazon agreed in writing that a court could review the merits of an arbitral decision, that agreement would be unenforceable. The FAA floor is also the FAA ceiling when it comes to appeal rights.

The Four Statutory Grounds for Vacatur Under 9 U.S.C. § 10

Section 10(a) of the FAA lists four grounds on which a federal district court may vacate an arbitration award:

  • Corruption, fraud, or undue means — The award was procured by corruption, fraud, or undue means. This requires proof of intentional wrongdoing, not mere error. Courts have found this ground satisfied where an arbitrator accepted bribes or where a party fabricated key documentary evidence.
  • Evident partiality or corruption — The arbitrators evidently were partial to one party or were corrupt. The Supreme Court addressed this in Commonwealth Coatings Corp. v. Continental Casualty Co., 393 U.S. 145 (1968), requiring arbitrators to disclose any significant prior relationship with a party. Undisclosed conflicts of interest can satisfy this ground, but only where they are material and substantial.
  • Arbitrator misconduct — The arbitrators were guilty of misbehavior that prejudiced the rights of any party. Refusing to hear material evidence or engaging in ex parte communications with one side fall into this category. Simple errors of evidentiary judgment do not.
  • Excess of powers — The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award was not made. This is often argued where the arbitrator decided an issue the parties never submitted to arbitration, or where the award itself is internally contradictory.

An important clarification: courts have repeatedly held that misapplication of law, misinterpretation of contract terms, or even factual error by the arbitrator is not a basis for vacatur under any of these grounds. If the arbitrator simply gets it wrong — analytically or legally — the award stands.

Amazon’s Arbitration Agreement in Practice

Amazon’s Business Solutions Agreement (BSA) and its Consumer Terms of Service both require binding arbitration administered by the American Arbitration Association (AAA) under the AAA Commercial Arbitration Rules. The AAA rules provide their own internal appeal mechanism — the AAA Optional Appellate Rules — which some parties attempt to invoke. However, even where parties agree to use these internal rules, the resulting appellate award is still an arbitration award subject to the same narrow FAA vacatur standards when it reaches a court.

Amazon has litigated aggressively to enforce its arbitration clauses. Courts across the country have enforced Amazon’s arbitration agreements against sellers, buyers, and third-party merchants alike. The Supreme Court has, in recent years, consistently upheld broad arbitration clauses and rejected attempts to avoid arbitration on public policy or unconscionability grounds. AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), for example, held that the FAA preempts state-law defenses that single out arbitration agreements for disfavored treatment.

What You Can Do Before and During the Arbitration

Because post-award relief is nearly impossible, the real opportunity for Amazon sellers and buyers is in the arbitration proceeding itself. Consider the following:

  • Retain experienced counsel early. Amazon and its legal team know these procedures intimately. Attempting to navigate an AAA arbitration without counsel puts you at a significant disadvantage before the first document exchange.
  • Challenge the arbitration clause before it begins. Certain defenses — for example, that the clause is unconscionable under state law, or that you are not bound by the agreement because you never assented to it — must typically be raised before the arbitration commences, not after an award is issued.
  • Request disclosure from the arbitrator. Under the AAA’s rules and the FAA, arbitrators have a duty to disclose conflicts of interest. Insisting on full disclosure before proceedings begin protects your ability to raise an evident partiality challenge if hidden conflicts later surface.
  • Build a complete record. Unlike court proceedings, arbitration records are private. Make sure every document, argument, and objection is preserved in the record so that, on the narrow chance a court reviews the award, you have the evidence needed.

State-Court Confirmation and the Path to Enforcement

Once an arbitration award is issued, either party may seek to have it confirmed by a court. Under 9 U.S.C. § 9, a federal district court must confirm the award unless one of the § 10 vacatur grounds is established. Upon confirmation, the arbitration award becomes a court judgment, fully enforceable like any other civil judgment — including through garnishment, attachment of assets, or other collection remedies. This is a critical point for Amazon sellers who win an award: confirming the award in court is the step that gives you the enforcement tools of the civil justice system.

Contact the Amazon Resolution Attorneys at Revision Legal

If you are an Amazon seller or buyer facing an arbitration proceeding — or if you have received an adverse award and want to understand your limited options — the experienced Amazon Resolution Attorneys at Revision Legal can help. We handle disputes involving Amazon’s seller policies, account suspensions, ASIN removals, and arbitration proceedings under the BSA. Contact us through the form on this page or call (855) 473-8474 for a consultation.

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