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"Single Tire Rule" in Track Racing Addressed In Antitrust Suit

By FindLaw Staff on July 26, 2010 1:43 PM

Race Tires Am., Inc. v. Hoosier Racing Tire Corp., 09-3989, concerned a plaintiff's antitrust suit against a tire supplier competitor and a motorsports sanctioning body, arising from the adoption of the so-called "single tire rule" by various sanctioning bodies in the sport of dirt oval track racing as well as the exclusive supply contracts between the sanctioning bodies and the defendant tire supplier.

In affirming the district court's grant of defendants' motions for summary judgment, the court adopted a general rule that the Sherman Act does not forbid sanctioning bodies and other sport-related organizations from freely adopting exclusive equipment requirements, so long as such organizations otherwise possess, in good faith, sufficient pro-competitive or business justifications for their actions.  The court held that the district court was correct to grant summary judgment in favor of the defendants because of plaintiffs' failure to meet the antitrust injury requirement, and also held that the district court did not abuse its discretion on rejecting a last minute attempt to amend a pleading for the fourth time.

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