A contract dispute between Toys "R" Us and online retailer Amazon.com continued yesterday despite mediation efforts and urgings by a judge that the two companies try to work out a solution between themselves.

After a nearly two-hour hearing in Paterson, state Superior Court Judge Margaret McVeigh continued a restraining order she imposed on Amazon in early June that essentially prohibits the business from allowing parties other than Toys "R" Us to sell certain toys and games on the Web site.

"This court continues to be concerned with the issue of irreparable harm to the business interests of Toys R Us," the judge said.

Wayne-based Toys "R" Us sued Amazon in May, alleging Amazon was violating terms of a contract that called for the nation s second- largest toy seller to be the exclusive provider of certain toys, games and baby products on Amazon s Web site. Toys "R" Us said although it was paying $50 million a year for the right to be the sole seller of specific merchandise, Amazon was allowing other merchants on its site to offer the same products