Amazon’s ‘Marketplace’ Business Model Probed by Texas Justices

The Texas Supreme Court asked Thursday how Amazon.com Inc.'s web marketplace business practices fit into Texas product liability law—whether Amazon is most like a big retailer, a farmer’s market real estate owner, a consignment seller, or even someone who rents out a warehouse space.

Amazon says it’s not a “seller” under state law with potential liability for a toddler’s battery-ingestion injury, which her mother, Morgan McMillan, blamed on a remote control bought through the company’s website.

Amazon stored the item in its warehouse before the sale took place, McMillan’s attorney Jeff Meyerson, who practices in Austin, Texas, told the court ...