Sports Law Exam

Front 1

How do you Identify The Market

Back 1

1. a relevant product or service market in which the parties compete
2. Broad: players market services; professional football/baseball basketball
3. Narrow: College Players/services

Front 2

What is the Sherman Anti Trust Act 1

Back 2

It deals with an unreasonable restraint on trade.

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among several states is declared to be illegal

Front 3

What are the elements of Sherman Act 1

Back 3

1. must be a contract, combination, or conspiracy
2. must produce an unreasonable restraint on trade
3. restraint must effect trade and interstate commerce, among the several states

Front 4

What is the Food Exception with MLB to Anti Trust

Back 4

The MLB reserve system is exempt from antitrust

Front 5

What is the curt flood act 1998:

Back 5

New antitrust coverage of baseball, does not apply to any conduct that does not directly relate to or affect employment of major league players to play baseball at the major level. Players are covered under antitrust law.

Front 6

What is the piazza v. MLB exception to Antitrust

Back 6

MLB is not exempt from Antitrust laws for contractual issues dealing with franchise

Front 7

How do you attack an AntiTrust issue?

Back 7

1. Define the market
2. Determine which federal law to use: Sherman 1/2
3. Rule of Reason Analysis: History, Purpose, Anticompetitive affect vs. Pro-competitive virtues

Front 8

What is the Clayton Act?

Back 8

The labor of a human being is not a commodity or article of commerce. (allows unions to be created)

Front 9

Under the Clayton Act what is the basis for finding an unreasonable restraint on trade?

Back 9

1. Nature or character of the contract
2. On the surrounding circumstances giving rise to restraint
Example: Brown v. Pro Football - Price-Fixing

Front 10

What is the Sherman Act 2

Back 10

Any person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the server states shall be guilty of violating the Sherman Act

Front 11

What is the Difference from Sherman Act 1 vs Sherman act 2

Back 11

Sherman Act 1 REQUIRES that at least 2 distinct legal persons who are parties to a collusive arrangement

Sherman Act 2: every person who shall monopolize. Single entities are only subject to section 2

Front 12

What are the elements needed for Sherman Act 2

Back 12

1. Dangerous probability of success to monopolize
2. Specific intent to destroy competition in order to monopolize

Front 13

What is a monopoly vs Monopsony

Back 13

Monopoly: one seller and a lot of buyers
Monopsony: one buyer and a lot of sellers

Front 14

What is a Per Se Violation on Antitrust

Back 14

applies to overt antitrust violations that are so consistently unreasonable that they may be deemed illegal per se without further inquiry

Example: Group Boycotts (attempting to monopolize the market) and concerted refusals to deal

Front 15

What is the Rule of Reason Analysis

Back 15

1. Considerations: Whether the restraint is anticompetitive; Considering all the relevant facts to that business; and reasons why the restraint was imposed

2. Balancing Test: if the anticompetitive evils outweigh the procompetitive advantages, the court then must consider if that restraint substantially impedes competition and is therefore unreasonable
3. Focus: Whether the restraint as imposed is justified by legitimate purposes and it is no more restrictive than necessary; essentially, whether the restrain is reasonable under all circumstances

Front 16

What does Smith v. Pro football work?

Back 16

Creates the argument against a group boycott. Calls it a joint venture, because no NFL club can produce this product without agreements and joint action with every other team. States that teams are competitively balanced.

Front 17

How can a player sue the MLB/NFL/NBA/NHL

Back 17

1. If there is no CBA in place
2. Once the Union has decertified

Front 18

How do collective bargaining agreements work?

Back 18

Where owners and players are able to join together and bargain for certain rights and provisions that can be in their contract and for the game they play

Front 19

What are the 2 Distinct subject matter for a CBA?

Back 19

1. Mandatory: wages, hours benefits, and conditions of employment - MUST BE BARGAINED IN GOOD FAITH

2. Permissive: anything thats not mandatory - Can refuse to bargain on these issues.

Front 20

What is the National Labor Relations Act?

Back 20

gives employees the right to organize themselves into a union and engage in CBA with employers

Front 21

What is the La Guardia Act?

Back 21

Labor unions can pursue self-help for disputes that go beyond the normal bounds of conflict. Federal Courts cannot enjoin strikes, pickets, and boycotts.

Front 22

What happens when Negations reach an impasse or need immediate relief for restraint?

Back 22

1. Players can strike
2. Owners can lockout
3. Arbitration by lawyer
4. Mediation by Mediator
5. Preliminary Injunctive Relief to Stop Restraint

Front 23

What are the elements need for an Injunctive Relief to Stop restraint?

Back 23

1. Would movant have success if granted
2. Would movant suffer harm for failure to grant relief
3. Balance of Harms
4. Would it harm the public interest

Front 24

What is the Non-Staturory Labor Exemption?

Back 24

Any union management agreement that was a product of good faith negotiation will receive protection from the antitrust laws.

elements: Exempt If
1. Affects only parties to the collective bargaining agreement
2. Involves a mandatory subject of collective bargaining
3. Was a result of bona fide arms length negotiations.

Front 25

How does a Rozelle Rule from Macky Part 1 work when attacking it?

Back 25

The rule is illegal per se because it operates to deter clubs from negotiating with and signing free agents, and acts like a group boycott
2. The rules anticompetitive effects include a deterrent to players playing out their options and becoming free agents; decreases players bargaining power in contract negotiations; players denied right to sell services in a free open market; salaries paid by each club are lower than if competitivie bidding prevailed; absent the rule there would be increased movement in interstate commerce of players

Front 26

What is the statutory labor exemption?

Back 26

Allows unions to enter into agreements that may create a monopolistic practice regarding the working conditions of the employees it represents.

Front 27

what the the AntiTrust Exemptions for the NFL broadcasting?

Back 27

NFL and TV networks can pool and sell video packaging, can blackout games in home territory, and the merger of the NFL, and AFL draft systems was specifically excluded from antitrust scrutiny

Front 28

What is Eminent Domain

Back 28

the power of the government to condemn asset if required for public use if just compensation is paid

Front 29

How does Eminent Domain work with the City of Oakland v. Raiders

Back 29

A city can acquire and operate a sports franchise by Eminent Domain proceedings.
It must meet two criteria
1. It must be for public use
2. they must give Just compensation to be pid therefore
Cities can exert this power under the general principle that providing access to recreation to its residents in the form of spectator sports is an appropriate function of city government. Therefore, this is the rationale for public use.

Court also said
ED proceedings are not allowed if they will burden interstate commerce.
Also because the NFL would lose money because the new owners allegiance would be to the city, and not the team. Therefore it would affect the economic market because the NFL would lose money, and if every other city practiced this activity the nfl would lose money, fan base, and the economy would plunder

Front 30

What is the copyright act?

Back 30

Irreparable harm is presumed when the exclusive rights of the holder are infringed

Front 31

What are the three elements to get a copyright

Back 31

1. Fixed in a tangible medium
2. Original work of the author
3. falls under copyright subject matter.

Front 32

What actions can a copyright owner take under the act.

Back 32

1. allows owners to file suit against anybody that infringes on his right
2. permits court to grant injunction to stop a continuing threat of copyright infringement

Front 33

What is the Fair Use Defense for Copyright/Trademark

Back 33

One can use copyrighted material in a reasonable manner without the consent of the owner.

Balancing Test
1. Purpose and character of the use
2. Nature of the copyrighted work
3. amount and substance of the portion used in relation to the copyrighted work as a whole
4. effect of the use upon the potential market based upon the value of the copyrighted work

FairUse Defense does not apply for anyone using the copyright for Commercial Use

Front 34

What is a trademark

Back 34

A trademark is any word, name, symbol, or device used by a person to identify and distinguish his or her goods from those manufactured and sold by others and to indicate the source of the good

Front 35

What are the 8 factors a court will look at for trademark cases?

Back 35

1. similarity of mark
2. confusion to consumer
3. proximity of products
4. strength of trademark
5. likelihood that P will bridge the gap between 2 markets possibly
6. presence or absence of good faith on part of D
7. Quality of D's services
8. sophistication of likely purchasers

Front 36

When is there an infringment of the Trademark/Lanham act

Back 36

a violations occurs when 1. any reproduction, or counterfeit of a mark, 2. without registers consent 3. in commerce 4. in connection with the sale 5. likely to cause reasonable confusion or deceive.

Front 37

What is against a Salary Cap

Back 37

1. Base Salary
2. Likely to Be Earned, Incentives, any non-guaranteed bonuses

Front 38

What is prorated over contract years with Salary Caps

Back 38

1. Signing Bonuses
2. Likely to be earned, any guaranteed bonuses

Front 39

How do you renegotiate Contracts

Back 39

Add signing bonuses together and divide by total number of contract years

Front 40

What does the Clayton Act Prohibit?

Back 40

1. price discrimination between different purchasers if such discrimination substantially lessens competition or tends to create a monopoly in any line of commerce
2. Sales on the condition that the buyer or lessee not deal with competitors of the seller or lessor (exclusive dealings), or that the buyer also purchase another different product (trying also covered by the sherman act) but only when these acts substantially lessen competition
3. mergers and acquisitions where the effect may substantially less competition
4. any person from being a director of two ore more competing corporations

Front 41

What is the rule that comes out of Brown v. Pro Football

Back 41

: If negotiations breakdown between an employer and an employee, or an employer and a Union then the Employer is STILL under the exemption clause afforded to Union employer relations under the Clayton act, despite after passing the impasse point.


o Employers will NOT be held to have violated the Antitrust laws by making changes to pre-existing conditions when negotiations breakdown.
o Meaning that the employer can implement changes that can be “Reasonably Comprehended” or within the employer’s last rejected proposals, (which ultimately led to the impasse in the first place). They will not be breaking the law because they are still exempt (Employers).