Toolson Vs. New York Yankees, Inc. Case

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Chapter II: Review of Literature Antitrust Laws The antitrust law began when the United States Congress passed the very first antitrust laws in 1890. These laws were called the Sherman Act. The Sherman Act was a “comprehensive character of economic liberty aimed at preserving free and unfettered competition as a rule of trade.” These Laws existed for many years. However, in 1914, the United States Congress decided to pass and add two new laws to the antitrust laws. The two new laws consist of the Federal Trade Commission Act, and later created the FTC, and the Clayton Act. Today, the Antitrust law still consist of three laws and these are the last three mentioned above. Case Law Baseball Baseball is the only sport to that is total exempt …show more content…

New York Yankees, Inc. case was argued on October 13, 1953 and was decided on November 9, 1953. This case involved the United States Supreme court ruling over it. This case was also filed against the antitrust law.(346 U.S. 356, 1953) It was field to challenge the reverses clause. The reverse clause prevents player from being free agents. This case was the very first to argue/challenge the reverse clause. The person filing the case was a man named George Earl Toolson. Toolson was a pitcher for the Newark Bears baseball team. He played with them in 1949. The Newark Bears is a farm team for the New York Yankees.(346 U.S. 356, 1953) Toolson believed he was a good athlete and was good enough to play for a major league team. He states that if he is not good enough for the New York Yankees, than he is good enough for another team.(346 U.S. 356, 1953) The reason behind him filing the suit is due to the reverse clause. The reverse clause mandates baseball player to sign contracts with the team the are signing with. As stated above the contracts that the players sign requires players to play with that team until the team no longer need or want them or the player retires. This is saying a player can not get involved with another team until they are out of the contract or the team they are playing for signs them over to another team. Prior to the season beginning in 1949 the New York Yankees demoted Toolson to the Binghamton, but he did not report this in his arguing. Toolson filed his case arguing that baseball should not be exempt from the antitrust laws and that the reverse clause puts a restraint on trade.(346 U.S. 356, 1953) Through this case Toolson was saying much has changed since 1922 when the supreme court made the decision to exempt baseball from the antitrust law. This was decided through the suit of the Federal Baseball Club of Baltimore V. The National League of Professional Baseball Clubs.(346 U.S. 356, 1953) Toolson informing the court of

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