Abstract This paper reviews a court case brought against the National Football League (NFL) by a player arguing that NFL rules regarding eligibility to enter the league are conspiratorial against his ability to earn a living. The paper explains, in detail, the history and purpose of antitrust laws and the logic behind the judge's decision in the case, which declared that the NFL is indeed in violation of antitrust legislation because of the qualifications it required of players to enter the game. The paper also presents the legal position of the NFL and, in the conclusion, offers reasons why the author agrees with their position as well.
Research Problem Statement
Is the National Football League's Requirements to Enter the Draft a
Violation of Antitrust Law? If So Why? Why Does the NFL Think It Is Not a Violation?
Defining the Antitrust Legislation
Sherman Antitrust Legislation
Clayton Antitrust amendment
Presidential Support
The Maurice Clarett Case
The NFL's Position
The Effect on the Game
Judge Scheinin's Decision
Literature Review
Definition of Terms
Sherman Anti-Trust Act
Clayton Act
Basis of Judge Shira Scheinin's Decision
Other Cases
Haywood vs. National Basketball Association, 401 U.S. 1204 (1971)
Impact of Case on the League
Players Straight out of High School who Have Been Successful
Kobe Bryant
Labron James
Unsuccessful Players
The Risk to the Kids who Leave Early
Will an 18 Year Old Be Physically Tough Enough
Summary and Conclusion
From the Paper "It is hard to conceive how these laws apply to the ability, or inability of a person who wants to enter a professional football career, but the recent court case brought by Maurice Clarett against the NFL charged that their rules regarding eligibility to enter the league are conspiratorial against his ability to earn a living. The NFL has placed age requirements on individuals. The want to make sure that a person who applies to for the job of a football player in the NFL will have developed the talent, as well as physical and emotional maturity to be qualified for the game. None the less this recent court action by Judge Shira Scheindin has declared that the NFL is in violation of antitrust legislation because of the qualifications it required of players to enter the game."
Abstract In discussing the disadvantages of monopolies and antitrust versus anticapitalism, this paper examines the history of antitrust laws, the anatomy of a monopoly, how monopolies effect the economy, the politics of antitrust, the role and opinion of the Federal Trade Commission and the Microsoft case.
From the Paper "America was founded on the idea that everyone had an equal chance to achieve financial success. If a person had a dream, they could follow that dream and get their piece of the pie. Coming from a weighted and disproportionate system, America's founders wished to form a country in which everyone had a chance. In England, one was born into their station in life. The rich would always be rich and a poor person had no chance of rising from the ranks to become wealthy. Antitrust laws were originally designed to keep the playing field even and give everyone and equal chance at achieving the American Dream (Mueller, 1997b). Their purpose was to assure that the old bourgeoisie class system that existed in Europe did not become a reality in the New World. Therefore many states adopted antitrust laws to assure that capitalism thrived and no one became so rich and powerful that the old class system, that they so loathed, developed."
Tags: law, competition, america, economy, capitalist, microsoft, system
Abstract This paper looks at the US debate over antitrust laws. Disagreements over antitrust policy range in scope from a consideration of the effectiveness of a specific policy to whether or not the entire model on which our laws are based is flawed at the core. Here an attempt is not made to give full answers to any of those questions. Instead, some examples are considered to help clarify the debate. Specifically, the competition in our free-market economy is considered, with some examples of specific policies in this area, and an example that illustrates differing opinions of the success or failure of the goals of those policies.
From the Paper "The single most frequently used word that one will encounter in researching almost any economic topic is "competition". This word can be defined in the economic sense as "a market situation characterized by a sufficiently large number of buyers and sellers so that no single buyer or seller can influence prices or quantities sold or bought in the market". The model of "pure competition" is, of course, illustrated by the horizontal demand curve of the firm versus the downward sloping demand curve of the industry. The fact that each firm is a price-taker and various other requirements, such as perfect knowledge and homogeneous products, exist in this model."
Abstract This paper will discuss the nature of the microeconomic policy of the Microsoft antitrust settlement that has resulted in the break up of the way the Clinton Administration was conducting it investigation, and how the Bush Administration is now stopping the court proceedings. By understanding this, we can see why the Bush Administration is ushering a lack of policy against this type of market creation, and the way that these statistics will affect the economy.
This paper examines the rationale behind the Sherman Antitrust Act and the possible effects of the U.S. government's plan to dismantle the Microsoft monopoly.
Abstract This paper explores the Sherman Antitrust Act of 1890 and asks whether trusts or monopolies are truly harmful to the consumer. This paper focuses on Standard Oil, A T & T and the Microsoft Corporation as well as the recent government decision which seriously considers breaking up Microsoft into two or three separate companies. The writer of this paper also discusses whether the Sherman act encourages or restricts competition.
From the Paper "It is a fact that Microsoft, through its economies of scale, could bring out various products at a lower rate. Volume can provide lower costs which, all other things being equal, are passed on to the consumer. So, in essence, a Microsoft broad scope benefits the ultimate consumer, and has demonstrably done so, while the competition among long distance carriers and gasoline refiners has not shown top have lowered the costs to consumers very much, if at all. Interestingly enough, when Henry Ford's production techniques allowed him to outsell and under-price all competition, there was no thought of considering Ford in violation of the Sherman Act."
Abstract The paper provides an analysis of the liberalization of the banking industry in China, with a specific focus on whether antitrust policy has been successful in the region and how it has impacted other macroeconomic factors in China. The paper explores economic policy related to government policy, liberalization policies or rules and the role of the World Trade Organization (WTO) in the liberalization efforts in the Chinese banking industry.
Outline:
Introduction
World Trade Organization and Liberalization Policies: How is the Chinese Banking Industry Affected?
Historical Structure of the Chinese Banking Sector
Why Liberalize the Banking Sector? A Critical Economic Analysis
Forms of Liberalization in the Banking Sector: Formal Changes in China
Liberalization of the Banking Industry in China: Was it Successful?
Conclusion
From the Paper "Liberalization is a process of enhancing collective measures to integrate economies, not only via goods and services but via governance, investment, trade, and aid. As liberalization has progressed, it is clear that the most advanced countries have gained the most from the integration of economies; as such there is a widening gap between developed/advanced countries and developing/underdeveloped countries. Does liberalization favor high-income countries to low-income countries? The coffee industry highlights a common problem with many agricultural products that are marketed within developed regions - impoverished societies characterized poor development trends with a final product that is booming in the industry."
While Bill Gates may have represented the American dream, his actions in his company Microsoft have been staunchly attacked. This paper analyzes what happened and what the future holds for the man and the multi-billion dollar company.
2,459 words (approx. 9.8 pages), 27 sources, 2002, $ 74.95
Abstract This paper is divided into five parts. It analyzes and examines the plethora of issues involved in the Microsoft antitrust case. Part II offers a brief summary of the facts and issues of the Microsoft antitrust case. In Part III, stakeholders involved in the Microsoft antitrust case are evaluated. Part IV outlines what portion of the life cycle the Microsoft antitrust case is in. In Part V, recommendations for addressing the various issues of the Microsoft antitrust case are summarized. The paper has comprehensive footnotes.
From the Paper "Individuals and investment firms are other stakeholders involved in the Microsoft antitrust case. These groups have legitimacy because their money is invested in Microsoft, which gives them the right to express their opinions regarding the company in the form of votes. Likewise, individuals and investment firms who own Microsoft stock have power because they may elect to sell their shares as a result of displeasure with the company's actions. If large numbers of individuals and investment firms eliminate or reduce their Microsoft holdings, the company's stock price will likely fall."
Abstract This paper explains that, even though it has obvious characteristics that would characterize another industry as a monopoly, the U.S. Congress has granted major league baseball (MLB) an antitrust exemption. However, there have been challenges to this MLB exemption that would open the baseball industry to greater competition. The author examines the standing reasoning behind this antitrust exemption, analyzes some of the major challenges to the exemption and discusses the overall implications and ramifications for this industry and any industry. In conclusion, the paper points out that other sports have persisted despite not having antitrust exemptions, so there is little reason to expect that baseball could not adapt as well.
Table of Contents:
Major League Baseball's Status
Challenges to the Antitrust Exemption
Industry Ramifications and Conclusions
From the Paper "In 1953, the Supreme Court was granted a chance to correct the anomalous decision that was made in 1922 that granted baseball exemption from antitrust suits. The case was Toolson vs. The New York Yankees. In the case, George Toolson was reassigned from a minor league team to another team. The reserve clause, still in effect at that time, was used by the league as the means to forcibly transfer Toolson. Toolson, apparently, did not want to make the move. He believed that the reserve clause interfered with his ability to manage his own career, a point that was not incorrect."
Discusses the economic effects of collusive price agreements from the perspective of the firms involved, other firms in the market, and society as a whole.
Abstract This paper attempts to discuss the economic effects of collusive price agreements from the perspective of the firms involved, other firms in the market, and society as a whole, with the main focus on the first form of collusion, cartels. A discussion of the effect of antitrust authorities follows. Part 3 explains how market structure affects collusion and concludes with a discussion of the facilitating strategies.
Introduction-Layout
1.0 Cartels
2.0 Antitrust Authorities and Fines Imposed
3.0 Market Structure and Collusive Price Agreements.
4.0 Facilitating Practices
5.0 Conclusion
Bibliography
From the Paper "Carlton et al. (1999) describe cartels as a group of firms that explicitly acts collectively to promote its best interests. By restricting market output and raising the market price, these firms succeed a similar profit of that of a monopoly. R. A. Posner (1976) also defines cartels as ?The pure collusive practice that involves cooperation between competing sellers to raise the market price above the competitive level."
Abstract Economics is oftentimes shaped by societal conditions and political decisions. Such is the case with business operations in the United States. Antitrust laws have gradually emerged to reflect the values and perspectives of American society. This paper presents a discussion of the historical context of anti-trust laws, an examination of individual antitrust laws and amendments and an overview of the implications such regulations have had on specific companies.
From the Paper "Just as the Sherman Antitrust Act affected some businesses, so too did the Clayton Act, its amendments, and the FTC. In the Standard Oil Co. of California and Standard Stations, Inc. versus the U.S. suit, the court declared the companies' tying agreements a violation of the Clayton Act and therefore illegal as they restricted free commerce. A similar decision was made regarding IBM after it was uncovered that the corporation required buyers of its computers to also purchase its brand-name punch cards (Dolan, 1983, pp. 253 & 254). A breach of the Celler-Kefauver Anti-merger Act was cited in a case involving Von's Grocery Company. The court ruled its merger with Shopping Bag Food Stores a violation of the Celler-Kefauver Anti-merger Act in that such an action decreased competition, albeit modestly (Dolan, pp. 252 & 253)."
Abstract The paper discusses the landmark Supreme Court decision "Weyerhaeuser Company versus Ross-Simmons Hardwood Lumber Company," which has had a significant effect on the judicial landscape pertaining to antitrust law. The case involved the legal issues of antitrust laws and monopolies, specifically regarding what test was to be utilized should a predatory bidding occur. The paper discusses that essentially the Supreme Court held that the test used for over a decade to govern predatory pricing was the same test that should be applied to incidences of predatory bidding. The paper states that without competition, there is no check on prices and thus the consumer is the one who suffers. The paper relates that Congress enacted various laws in order to prevent monopolistic business practices from occurring.
Outline:
Introduction
Summary of the Case
Factual Background
Decision
Consequences of the Weyerhaeuser Decision
From the Paper "Antitrust laws came into existence in the 1800s as a way of protecting the free enterprise value of American capitalism. The need arose during the later part of the century when great industrial corporations, such as Standard Oil and JP Morgan, were able to create monopolies over their industry and thus force out competition. Without competition, there is no check on prices and thus the consumer is the one who suffers. Thus, congress enacted various laws in order to prevent such monopolistic business practices from occurring."
Tags: judicial, landscape, predatory, bidding, market, power
A discussion on the Sherman Antitrust Act of 1890, on the basis of which the United States Department of Justice, along with twenty state attorney generals, charged the Microsoft Corporation with conducting illegal anti-competitive business practices.
Abstract The following paper discusses the controversial charges brought about by the government on Microsoft. The writer examines thoughts and opinions of people and companies that think that Microsoft and CEO Bill Gates are acting in violation of the anti-trust laws of the United States, while others think that the charges against Microsoft are damaging the free market. This paper examines the truth to both sides of the argument.
From the Paper "The Sherman Antitrust Act of 1890 was passed by the United States Congress in order to declare illegal "every contract combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce with several states, or foreign nations", meaning that any corporate action for the purpose of eliminating competition in an area of business and of controlling the market for a product, was declared illegal. (1) In May of 1998, the United States Department of Justice charged the Microsoft Corporation with conducting such illegal anti-competitive business practices. Microsoft, the largest and wealthiest software company in the world, was under fire because it was supplying, free of charge, it's version of an internet browser called Internet Explorer with the selling of the Windows operating system. The government stated "internet browsers are separate products competing in a separate product market from personal computer operating systems"?. (2) The government was calling for action to split the Microsoft Corporation into two separate companies: software and web browsing."
Analyzes the government's case against this computer firm. Provides an overview of antitrust law and an assessment of arguments and rhetoric on both sides of the case.
1,350 words (approx. 5.4 pages), 6 sources, 1999, $ 47.95
Abstract The American court system is structured to be adversarial. Nowhere is the form of argument taken to a higher level. Lawyers by definition should be great debaters, paid to make the best arguments in favor of their clients. Only when lawyers make the best arguments do they succeed in proving their case and perform their job successfully.
From the Paper "The American court system is structured to be adversarial. Nowhere is the form of argument taken to a higher level. Lawyers by definition should be great debaters, paid to make the best arguments in favor of their clients. Only when lawyers make the best arguments do they succeed in proving their case and perform their job successfully. Currently the lawyers at the Microsoft Corporation are busy trying to come up with the best arguments possible to prove the company has not been engaged in the monopolistic and anticompetitive practices of which it has been accused.
A brief synapsis of what led to the situation Microsoft now finds itself in is presented at the onset of this paper. It includes a brief history and description of U.S. antitrust..."
Abstract This paper examines the antitrust case against Microsoft and shows how the Bill Gates story can be classified as a tragedy in the same league as literature such as "King Lear" and "Death of a Salesman" where the protagonist invites his own tragic downfall. It attempts to fit the story into the theories of classical tragedy and analyzes how Bill Gates has all the qualities of the tragic protagonist. By dividing the Microsoft story into different acts, it describes Bill Gates' rise as the computer mogul, the court case and the aftermath.
From the Paper "In point of fact, Judge Jackson, who heard the case and ordered the breakup of the company, has come under criticism for his bias against Gates during the trial. "Judges on the U.S. Court of Appeals for the District of Columbia sharply criticized U.S. District Judge Thomas Penfield Jackson for speaking with reporters during the trial, opening the door for Microsoft's appeal to be upheld, at least in part" (Johnston 5).
Still at issue is whether or not Microsoft meets all of the requirements of antitrust rulings, issues that are forming the basis for the appeals. In fact, most observers see the government's case against Microsoft as being built on sand."
Abstract An analysis of whether a single company should be allowed to own a television station and a newspaper in the same geographic market. This paper examines this issue from the perspective of the company, the industry as a whole, and the consumer in the market.
Contents
Introduction
Review and Discussion
Economic Considerations
Discussion of the Problem
Public Policy Interest
Conclusion
From the Paper "The Sherman Antitrust Act was the key legislation in the United States effort to maintain by a competitive economic playing field by law. This act, which outlawed any ?combination or conspiracy in restraint of trade,? has been reinforced by other legislation aimed at specific practices that serve to lessen competition. In 1914 the U.S. Congress passed the Clayton Antitrust Act and also established the Federal Trade Commission. The Clayton Antitrust Act made illegal such practices as price discrimination and tying contracts, which forced a buyer or seller to deal exclusively with a specific firm for the provision of a good or service. More recently, the Celler-Kefauver Act (1950) attempted to prevent mergers through the acquisition of the assets of competing firms if the effect is to substantially lessen competition. The Telecommunications Act of 1996 also influenced this merger."
