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Corporations Keyed to Hazen
Gilder v. PGA Tour, Inc.
Citation:
936 F.2d 417 (9th Cir.1991)Facts
The action concerns a rule change implemented by the PGA that bans all clubs on which the cross-section of the grooves on the face of club is in the shape of a square or “U” as opposed to “V.” Karsten Manufacturing Corporation designs, manufactures, and sells “Ping Eye 2” golf clubs. All of Karsten’s Ping Eye 2 golf clubs have U-shaped grooves. Bob Gilder and the seven other plaintiffs in this action are eight professional golfers who are members of the PGA. In 1984, the United States Golf Association changed the rules of golf to allow grooves in the shape of a U. Karsten developed its U-groove club. In November of 1987, the independent testing expert conducted elaborate field tests trying to localize the effect of the groove and concluded that the U-grooves impart more spin to the golf ball than the V-grooves. However, all members of the PGA board voted to change the bylaws of the PGA so that the disinterested members could take binding action on behalf of the PGA policy when the majority of the directors could not vote because of a conflict. The three disinterested directors then unanimously voted to readopt the groove rule.
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