Sherman Antitrust Act Dispute

Federal Baseball Club vs. National League

What the Dispute Was Over

When the Federal League went out of business in 1915, most of the clubs in it were either bought by or compensated for in some way by owners in the Major Leagues. The owner of the Baltimore Terrapins, a club in the Federal League that had yet to be bought, grew angry about the situation. He decided to sue the National League, American League, and other defendants on the account of attempting to create a monopoly out of baseball by destroying the Federal League.

What Happened in the Court Case

When the case was taken to court in 1922, the defendants were found not guilty. The explanation behind the ruling was that baseball is not considered interstate commerce under the Sherman Antitrust Act, therefore what the leagues did was completely legal.

What is the Sherman Antitrust Act?

The Sherman Antitrust Act is a law that prohibits certain business activities that the government deems anticompetitive, such as monopolies or cartels. It also requires the government to investigate and pursue trusts.

Works Cited

"Federal Baseball Club v. National League." Wikipedia. Wikimedia Foundation, 01 Feb. 2014. Web. 14 Feb. 2014.

<http://en.wikipedia.org/wiki/Federal_Baseball_Club_v._National_League>.

"Sherman Antitrust Act." Wikipedia. Wikimedia Foundation, 14 Feb. 2014. Web. 14 Feb. 2014.

<http://en.wikipedia.org/wiki/Sherman_Antitrust_Act>.