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Sports Law > Final Exam Part 1 > Flashcards

Final Exam Part 1 Flashcards

League structure, commissioner's authority, contracts, trademarks, copyright and anti trust

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1
Q

examples of traditional leagues

A

NHL, NBA, MLB etc.

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2
Q

in traditional leagues, who is liable for the actions of the unincorporated association?

A

each member of the team

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3
Q

is the unincorporated associated liable for the actions of each team member?

A

generally not

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4
Q

how much capital can an individual team owner invest ?

A

as much as they want

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5
Q

what are the pros of a traditional league?

A

1) it’s easy to raise capital
2) owners can invest as much capital as they want
3) individual team owner funds the team
4) entreprenuerial in nature

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6
Q

what are the cons of a traditional league?

A

subject to the Sherman Act 1 and 2

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7
Q

why is it significant that traditional leagues are subject to the Sherman Act?

A

because a traditional league is always deemed to be a conspiracy or joint venture of the members teams making it always subject to Sherman Act 1 where the burden of proof is very high

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8
Q

how is revenue and expenses divided in a single entity league?

A

equally

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9
Q

who owns interest in the LLC of a single entity league and who does the LLC own?

A

each owner owns interest and the LLC owns them

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10
Q

who are teams of a single entity league owned by?

A

the league

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11
Q

what are the pros of a single entity league?

A

not subject to the Sherman Act section 1

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12
Q

what are the cons of a single entity league?

A

1) no incentive for owners to invest money in team because it doesn’t benefit them
2) Subject to Sherman Act 2

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13
Q

what can you do if you have 2 separate single entity leagues doing an act together conspiring to restrain trade?

A

You can sue them under Sherman section 1 which is easier to prove than 2

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14
Q

what is a hybrid league?

A

a single entity league in which each owner/investor is assigned a team, and paid a bonus based on the success of a team

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15
Q

how is a league first generally set up?

A

as a single entity league and once a collective bargaining agreement is established with a duly certified union, the league can switch to a traditional league

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16
Q

what is the logic about forming a single entity league before a traditional league?

A

when you’re negotiating and implementing a salary cap, you are restraining trade

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17
Q

if a duly certified union brings a law suit against the single entity, are they subject to Sherman section 1 or 2?

A

no

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18
Q

why is it when a duly certified union sues a single entity, they are not subject to Sherman section 1?

A

they are not a “conspiracy, combination, and/or joint venture”

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19
Q

why is it when a duly certified union sues a single entity they are not subject to Sherman section 2?

A

they have not yet established market power

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20
Q

what is a collective bargaining agreement?

A

a written contract between a duly certified union (player association) and the employer (owners).

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21
Q

what happens when a CBA expires?

A

all terms continue until a new one is in place

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22
Q

what can you do with a negative injunction?

A

you can force a team to stay but with out this clause, you can only sue for damages

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23
Q

who is the commissioner?

A

an absolute dictator when it comes to the team owners but not the players (players are governed by a CBA)

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24
Q

where does the source of the commissioner’s authority come from?

A

the league’s constitution/by laws

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25
Q

what powers does the commissioner have?

A

1) power to discipline
2) power to decide disputes between owners
3) power to represent league in CB negotiations

26
Q

what is the non-recourse rule?

A

you can not bring a lawsuit against a member of the league, you must goto the commissioner

27
Q

what are the requirements for a negative injunction?

A

1) irreparable harm
2) probability of success on the merits
3) balance harm b/t P and D
4) must have clean hands
5) original team must keep contract open
6) must be direct competition (Michael Jordan going to baseball wasn’t direct competition)

28
Q

does a CBA supersede contract law?

A

yes

29
Q

is there any tampering when it involves college?

A

no

30
Q

what happens when a sports executive’s contract is terminated without cause?

A

1) salary continuation only (if they fire you with 5 years left on your contract, they will pay you)
2) need not seek employment
3) new compensation reasonable
4) never severance for sports execs

31
Q

what happens when a non-sports exec’s contract is terminated without cause?

A

1) severance (keep that and what you earn at a new job)
2) no salary mitigation
3) expressed as such

32
Q

what happens when an non-sports executive quits?

A

they get a negative covenant (paid separate consideration NOT to work with a competitor for a particular amount of time)

33
Q

what is the league’s duty with negative covenants

A

1) time and location must be reasonable

2) must be willing to reinstate contract

34
Q

what is NY ‘s law regarding trademarks?

A

anyone who utilizes a LIVING PERSON’S individual’s face or name for COMMERCIAL PURPOSES is illegal and is liable to that person for damages (every state is different)

35
Q

is a nickname treated the same way as a real name as far as trademarks are concerned?

A

if it really stands out and is engrained in the public after a time it’s the same as a real name (Shaq, AROD)

36
Q

What are the exceptions to invasion of proprietary privacy

A

1) biography
2) news worthy
3) freedom of artistic expression

37
Q

if you goto an Islander’s game and they are giving out free posters, does that count as commercialization?

A

No, it is promotion but if it was even $1 it would be

38
Q

what can you NOT federally trademark?

A

1) a proper name

2) picture (that falls under copyright)

39
Q

what is Acquiescence?

A

failure to protect your trademark against a single violator and the knowledge can be ACTUAL or IMPUTED and you fail to address it

40
Q

how do you address Acquiescence?

A

send a cease and desist letter and if that doesn’t work, you will need to litigate

41
Q

what is abandonment?

A

failure to take timely remedial action on multiple acquiescences (mark remains in domain)

42
Q

what are the exceptions to copyright

A

1) newsworthy
2) artistic expression
3) fair use doctrine

43
Q

are events copyrightable?

A

no

44
Q

sample question: if the Yankee exhibition game is neither telecast nor broadcast, would the copyright of the game revert to the owners or the Yankees?

A

NO there is no copyright (the copyright belongs to the person that took the video)

45
Q

sample question: the yankee game is broadcasted on television and photographers are taking pictures, audio is being broadcast over the radio, whose copyright controls?

A

they are all good copyright

46
Q

what is Sherman I?

A

any combination, conspiracy, in which there is an ACT to restrain trade

47
Q

who does Sherman I apply to?

A

only traditional leagues

48
Q

what is Sherman II?

A

every person who shall monopolize will be guilty of a felony

49
Q

who does Sherman II apply to?

A

tradition and single entity leagues

50
Q

what is Sherman II based on?

A

market power

51
Q

does there need to be an act for a Sherman II claim?

A

no

52
Q

which is easier to prove, Sherman I or Sherman II?

A

I

53
Q

what are the 3 types of monopolies?

A

1) Natural
2) artificial
3) passive

54
Q

what do you need for a natural monopoly?

A

no created by a monopolist and need an affirmative unlawful act to be illegal

55
Q

what is the essential facility doctrine (anti trust)

A

essential facilities cannot be reproduced or duplicated due to cost cannot be denied to competitors

56
Q

what are 3 essential facilities?

A

1) stadium
2) tv rights
3) capital

57
Q

what are the 3 reasons that almost every anti trust suit is settled?

A

1) money (2/3 treble damages are not tax deductible)
2) discovery (embarrassing info could come out)
3) cost of litigation

58
Q

do anti-trust rules apply to baseball?

A

NO because they are engaged in interstate activity

59
Q

what does the Sports Broadcasting Act of 61 and 66 apply to?

A

only SPONSORED television

60
Q

what 2 requirements is the NFL subject to under the SBA 61 and 66?

A

1) can’t play Friday or Saturday nights during college football season
2) when the home team is playing home they cannot air another team playing in home area (Giants play in Meadowlands, can’t broadcast Seahawks playing in NY)

61
Q

what is considered sponsored television?

A

television with advertisements (not pay per view)

Sports Law (9 decks)

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