Question

In Wood vs NBA (1987) the court ruled that the NBA's salary cap and draft rules did not violate antitrust laws because A. all of the above B. The NBA was not subject to antitrust laws due to the nonstatutory labor exemption C. the salary cap and draft did not significantly restrain trade D. the NBA did not have a monopoly on the purchase of talent due to rival leagues

Answer 1

B. The NBA was not subject to antitrust laws due to the non - statutory labor exemption

Under Leon Wood vs NBA, Leon Wood alleged that he had been a victim of NBA's salary cap as NBA offered league minimum salary when he entered NBA draft. The salary cap and draft restrain the amount of a particular player that could be earned in a year. But court ruled out the case as NBA was not subject to antitrust laws due to non-statutory labor exemption.