N-Bar Trade Inc. v. amazon.com Services LLC

CourtDistrict Court, District of Columbia
DecidedOctober 22, 2025
DocketCivil Action No. 2025-0918
StatusPublished

This text of N-Bar Trade Inc. v. amazon.com Services LLC (N-Bar Trade Inc. v. amazon.com Services LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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N-Bar Trade Inc. v. amazon.com Services LLC, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

N-BAR TRADE, INC., et al., : : Plaintiffs, : Civil Action No.: 25-918 (RC) : v. : Re Document No.: 4 : AMAZON.COM SERVICES LLC, et al., : : Defendants. :

MEMORANDUM OPINION

GRANTING DEFENDANTS’ MOTION TO COMPEL ARBITRATION

I. INTRODUCTION

Plaintiffs N-Bar Trade, Inc. (“N-Bar”) and Aymen Mohammed (“Mr. Mohammed,” and

together with N-Bar, “Plaintiffs”) bring this action against Defendants Amazon.com Services

LLC and Amazon Payments, Inc. (together, “Amazon”), seeking damages for alleged violations

of contractual obligations between Amazon and N-Bar, a third-party seller on the Amazon.com

platform. See Compl., ECF No. 1-1. Amazon moves to compel arbitration pursuant to the terms

of its Business Solutions Agreement with Plaintiffs. See Defs.’ Mot. Compel Arbitration

(“Defs.’ Mot.”), ECF No. 4. For the reasons below, the Court grants Amazon’s Motion to

Compel Arbitration and dismisses the action without prejudice.

II. BACKGROUND

A. Factual Background

Amazon is an online retailer that permits third parties to register selling accounts and sell

products directly to Amazon customers. In May 2020, Mr. Mohammed registered N-Bar as a

third-party seller on the Amazon.com platform, through which N-Bar sold pandemic-related

supplies. See Pls.’ Am. Opp’n to Defs.’ Mot. Compel Arbitration (“Pls.’ Opp’n”) at 2, ECF No. 8. N-Bar’s seller account remained active until Amazon terminated it on February 16, 2022.

Gallucci Decl. ¶ 12, ECF No. 4-2.

To register a selling account, Amazon requires third-party sellers to accept and agree to

Amazon’s Business Solutions Agreement (“BSA”) and the policies it incorporates. Id. ¶ 6.

Amazon explains that it “provides all sellers with an opportunity to review the BSA before they

decide whether to accept its terms and register a selling account through a hyperlink that is

present on the Seller Agreement page.” Id. A seller cannot complete the online account

registration process unless he clicks an “Agree and continue” button on the Seller Agreement

page. Id. ¶¶ 7–8. In 2020, when Mr. Mohammed registered N-Bar’s seller account, that page

contained a notice stating: “By clicking on ‘Agree and continue,’ you agree to the Amazon

Services Business Solutions Agreement.” Id. ¶ 8. The BSA was “immediately accessible

through a hyperlink in blue text.” Id.

Section 18 of the BSA, titled “Miscellaneous,” contains a provision mandating arbitration

of disputes arising under the BSA: “Amazon and [the seller] both consent that any dispute with

Amazon or its Affiliates or claim relating in any way to this Agreement or your use of the

Services will be resolved by binding arbitration as described in this paragraph, rather than in

court . . . .” Gallucci Decl. ¶ 10, Ex. A (“BSA”) § 18, ECF No. 4-3. In the same paragraph, the

BSA provides: “The arbitration will be conducted by the American Arbitration Association

(AAA) under its commercial rules.” Id. The AAA’s commercial rules, in turn, provide that

“[t]he arbitrator shall have the power to rule on his or her own jurisdiction, including any

objections with respect to the existence, scope, or validity of the arbitration agreement or to the

arbitrability of any claim or counterclaim,” as well as “the power to determine the existence or

2 validity of a contract of which an arbitration clause forms a part.” Curran Decl. ¶ 7, Ex. A

(“AAA Commercial Arbitration Rules and Mediation Procedures”) R-7(a)–(b), ECF No. 4-7.

B. Procedural Background

In November 2023, Plaintiffs filed suit against Amazon in the Superior Court of the

District of Columbia, bringing claims for alleged breach of contract. See Defs.’ Mot. at 6. In

January 2024, Amazon advised Plaintiffs that their claims were subject to a binding arbitration

agreement in the BSA and asked Plaintiffs to dismiss their lawsuit and pursue their claims in

arbitration. Id. Plaintiffs agreed to do so. Id. N-Bar’s counsel emailed the AAA to initiate a

commercial arbitration, and the AAA requested that Plaintiffs remit the appropriate filing

pursuant to its rules. Id. However, after a disagreement with Amazon over the proper arbitration

locale, Plaintiffs asked the AAA to close the matter. Id. at 6–7; Pls.’ Opp’n at 3. Plaintiffs then

sought to reinstate their case in the D.C. Superior Court, but the court denied this request. Defs.’

Mot. at 6–7.

In February 2025, Plaintiffs filed another complaint against Amazon in the D.C. Superior

Court, stating claims for “contract enforcement,” conversion, unjust enrichment, and intentional

infliction of emotional distress. See Compl. ¶¶ 24–42. Plaintiffs allege in their complaint that

starting in 2021, Amazon breached contractual obligations with N-Bar when it withheld sales

proceeds and other assets from N-Bar, withdrew funds from N-Bar’s account, and ultimately

terminated N-Bar’s seller account. Id. ¶¶ 15–17. Amazon removed the case to this Court

pursuant to 28 U.S.C. § 1332 and thereafter moved to compel arbitration of the case pursuant to

the BSA’s mandatory arbitration provisions. See Corrected Notice of Removal, ECF No. 3-1;

Defs.’ Mot. at 1.

3 III. LEGAL STANDARD

Under the Federal Arbitration Act (“FAA”), a written provision requiring arbitration of a

dispute arising out of a contract “shall be valid, irrevocable, and enforceable, save upon such

grounds as exist at law or in equity for the revocation of any contract . . . .” 9 U.S.C. § 2. “The

FAA thereby places arbitration agreements on equal footing with other contracts,” Rent-A-Ctr.,

W., Inc. v. Jackson, 561 U.S. 63, 67 (2010), and requires courts to “enforce arbitration contracts

according to their terms,” Henry Schein, Inc. v. Archer & White Sales, Inc., 586 U.S. 63, 67

(2019). Through an arbitration agreement, “parties may agree to have an arbitrator decide not

only the merits of a particular dispute but also ‘gateway’ questions of ‘arbitrability,’ such as

whether the parties have agreed to arbitrate or whether their agreement covers a particular

controversy.” Id. at 67–68 (citation modified).

In considering a motion to compel arbitration, a court first determines whether an

arbitration agreement exists between the parties. See id. at 69; see also Mitsubishi Motors Corp.

v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626 (1985). The court makes this determination

pursuant to the summary judgment standard of Federal Rule of Civil Procedure 56, treating the

motion to compel “as if it were a request for summary disposition of the issue of whether or not

there had been a meeting of the minds on the agreement to arbitrate.” Aliron Int’l, Inc. v.

Cherokee Nation Indus., Inc., 531 F.3d 863, 865 (D.C. Cir. 2008) (citation omitted). Under Rule

56(a), summary judgment is granted only if “there is no genuine dispute as to any material fact

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