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What is an antitrust exemption?

The antitrust laws prohibit agreements by two or more that "restrain trade in interstate commerce." Labor unions, by their nature, may engage in such activities when they present demands for better wages, hours and working conditions. When act as representatives of a group of employees and serve as agents for them. So when an agreement between the union and management is concluded, the working must abide under the conditions agreed to. To prevent unions from antitrust liability, a "labor exemption" was created under the Clayton Act of 1914. It has two components. The so-called "statutory" labor exemption allows unions to enter into agreements which may create a monopolistic practice regarding the working conditions of the employees it represents. The "Non-Statutory Labor Exemption" -- the more applicable concept in sports law -- is a judicially-derived expansion of the labor exemption that protects union activity from antitrust scrutiny. It has been the crux of nearly all antitrust actions in professional sports (with the exception of baseball, which had an blanket exemption from antitrust laws until late in 1998). The non-statutory labor exemption is based on the policy that favors collective bargaining and gives it preference over the antitrust laws. Basically, any union-management agreement that was a product of good faith negotiation will receive protection from the antitrust laws. That means that the provisions of the agreement cannot be attacked as collusive or anti-competitive. Say that a salary cap is agreed to by a union and management. In pure antitrust terms, a cap can be a violation of the antitrust law. But since the cap was part of the collective bargaining agreement negotiatedin good faith and agreed-to by the union and management, the cap cannot attacked in court as a violation of antitrust. The statutory and non-statutory exemptions were intended to help unions from the threat of antitrust suits. But in sports, the tables have been turned. In the past, the exemptions have been used by management to enforce agreements that were "forced" on a weaker union (yes, there have been weak unions in sports!). The NFL players union learned this the hard way, when, after a series of cases in the late 1980s and early 1990s, it was ruled that the exemption applied throughout the negotiation process, even after a labor contract expired. This interpretation of the non-statutory exemption was upheld by the U.S. Supreme Court in 1997. During the recent NBA lockout, there was talk of decertifying the union by certain agents representing star players. Without a union, any imposition of a salary cap could likely violate antitrust laws -- and their top players could then have no constraints in negotiating even higher salaries. http://www.sportslawnews.com/archive/jargon/LJAntiexemption.html


The sherman antitrust law was used as a weapon against labor unions?

True. The sherman Antitrust law was against labor unions.


Who favored the clayton antitrust act?

The labor unions.


Who was the first federal legislation to exempt unions from the antitrust laws was the?

The 1914 Clayton Antitrust Act Labor excluded unions and agricultural cooperatives from antitrust laws


Labor leader who hailed the clayton antitrust act as the magna carta of labor?

Samuel Gompers


Did Labor laws and antitrust laws keep corporations under control?

True


What specified that labor unions and farm organizations had the right to exist?

The Clayton Antitrust Act


Which act protected labor union activity from being considered a monopoly?

Clayton Antitrust Act


What were no longer subject to antitrust laws under The Clayton Act?

labor unions and farm organizations.


Why did labor leaders praise the Clayton Antitrust Act?

The Act prevented unions from being treated as trusts.


Why are public utilities exempt from antitrust laws?

antitrust laws only apply to businesses. labor unions and most public utilities are not businesses. that's why the post office for example, isn't subject to antitrust laws because technically the post office is not a business. actually labor unions and public utilities are exempt from antitrust laws. Antitrust laws do not only apply to businesses but it also applies to industries as well. The following are exempt from antitrust laws: Labor Unions, Public Utilities - electric, gas, and telephone companies, Professional Baseball, Cooperative activities among U.S. exporters, Hospitals, Public Transit and water systems, Suppliers of military equipment, and Joint publishing arrangements in a single city by two or more newspapers.


What was the purpose of the Clayton Antitrust Act 1914?

the provent monopkt