The Gentleman`s Agreement

Until Jackie Robinson was hired by the Brooklyn Dodgers in 1946, a gentlemen`s agreement allowed African-American players to be excluded from organized baseball. [18] The end result can, in many cases, be higher costs or poor quality products for consumers. Worse still, a gentlemen`s agreement can be used as a means of promoting discriminatory practices, such as in an “Old Boy`s” network. A gentleman`s agreement, which is rather a point of honor and labeling, relies on the indulgence of two or more parties in the performance of spoken or tacit obligations. Unlike a binding contract or legal agreement, there is no legal remedy for breaching a gentlemen`s agreement. Gentlemen`s agreements were particularly prevalent at the birth of the industrial age and until the first half of the 1900s, with regulation often falling short of new business practices. It has been found that such agreements are used, inter alia, to control prices and limit competition in the steel, iron, water and tobacco industries. Similarly, in 1907, Morgan again collaborated with Roosevelt to create a gentlemen`s agreement that would allow U.S. Steel to acquire its largest competitor, Tennessee Coal and Iron, under a tacit and tacit rule contrary to the Sherman Act. The Bureau of Corporations, a predecessor of the Federal Trade Commission, was established in 1903 to investigate monopolistic practices. In 1890, the U.S.

administration banned gentlemen`s agreements in trade and commerce relations between nations.

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