Amazon.com 2001 Annual Report Download - page 25

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The Internet as a Medium for Commerce Is Uncertain
Consumer use of the Internet as a medium for commerce is a recent phenomenon and is subject to a high
level of uncertainty. While the number of Internet users has been rising, the Internet infrastructure may not
expand fast enough to meet the increased levels of demand. If use of the Internet as a medium for commerce does
not continue to grow or grows at a slower rate than we anticipate, our sales would be lower than expected and our
business would be harmed.
We Could Be Liable for Unlawful or Fraudulent Activities by Users of Our Marketplace, Auctions and
zShops Services
We may be unable to prevent users of our Amazon Marketplace, Auctions and zShops services from selling
unlawful goods, or from selling goods in an unlawful manner. We may face civil or criminal liability for
unlawful and fraudulent activities by our users under U.S. laws and/or the laws and regulations of other
countries. Any costs we incur as a result of liability relating to the sale of unlawful goods, the unlawful sale of
goods, the fraudulent receipt of goods or the fraudulent collection of payments could harm our business.
In running our Amazon Marketplace, Auctions and zShops services, we rely on sellers of goods to make
accurate representations and provide reliable delivery, and on buyers to pay the agreed purchase price. We do not
take responsibility for delivery of payment or goods and while we can suspend or terminate the accounts of users
who fail to fulfill their delivery obligations to other users, we cannot require users to make payments or deliver
goods. We do not compensate users who believe they have been defrauded by other users except through our
guarantee program. Under the guarantee program, fraudulent activities by our users, such as the fraudulent
receipt of goods and the fraudulent collection of payments, may create liability for us. In addition, we are aware
that governmental agencies are currently investigating the conduct of online auctions and could require changes
in the way we conduct this business.
Executive Officers and Directors
The following tables set forth certain information regarding our executive officers and Directors as of
January 15, 2002:
Executive Officers
Name Age Position
Jeffrey P. Bezos ............ 38 President, Chief Executive Officer and Chairman of the Board
Mark J. Britto .............. 37 Senior Vice President, Worldwide Service Sales & Business
Development
Richard L. Dalzell .......... 44 Senior Vice President, Worldwide Architecture & Platform Software,
and Chief Information Officer
Warren C. Jenson ........... 45 Senior Vice President and Chief Financial Officer
Diego Piacentini ............ 41 Senior Vice President, Worldwide Retail & Marketing
John D. Risher ............. 36 Senior Vice President, Worldwide Application Software
Jeffrey A. Wilke ............ 35 Senior Vice President, Worldwide Operations & Customer Service
L. Michelle Wilson ......... 38 Senior Vice President, Human Resources, General Counsel and
Secretary
Jeffrey P. Bezos. Mr. Bezos has been Chairman of the Board of Amazon.com since founding it in 1994
and Chief Executive Officer since May 1996. Mr. Bezos served as President from founding until June 1999 and
again from October 2000 to the present. He served as Treasurer and Secretary from May 1996 to March 1997.
From December 1990 to June 1994, Mr. Bezos was employed by D.E. Shaw & Co., a Wall Street investment
firm, becoming Senior Vice President in 1992. From April 1988 to December 1990, Mr. Bezos was employed by
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