A report from the United States House of Representatives detailing their investigation of the United States Steel Corporation asserted that there were two general types of loose associations or consolidations between steel and iron interests in the 1890s in which the individual concerns retained ownership as well as a large degree of independence: the pool and the « gentleman`s agreement. »  The latter type lacked any formal organization to regulate output or prices or any provisions for forfeiture in the event of an offence.  The efficacy of the agreement relied on members to keep informal pledges.  The reasons for a gentlemen`s agreement may be motivated by a legally inadmissible purpose of the agreement, i.e. a violation of legal prohibitions. The gentlemen`s agreement refers to concerted practices on the part of companies that are based on deliberate coordination, but not on legal ties. Companies that, as a whole, have a dominant position in the market, enter into price agreements and thus exclude market forces for price formation to the detriment of the consumer. Concerted practices are prohibited by German and European rules on cartels and abuse of dominant position (Article 101, paragraph 1, TFUE).  The gentlemen`s agreement should be separated from the oral contracts which, in principle, are legally binding in all their elements, but whose content cannot often be proven in the event of a dispute. In this respect, the agreement reached by a handshake is a social duty of its realization. The international diamond trade is an example. The multi-million dollar trade in gemstones is often given by a handshake. As soon as a contractor fails to meet his obligations, he will be ostracized and excluded within this elitist group.
Since the market is manageable and the participants are closely linked on a social level, this means for the individual the end of business and society in the diamond sector.  Until Jackie Robinson was hired by the Brooklyn Dodgers in 1946, a gentlemen`s agreement ensured that African American players were excluded from organized baseball.  In the automotive industry, Japanese manufacturers agreed that no production car would have more than 276 bhp (206 kW; 280 hp); The agreement ended in 2005.  German manufacturers limit the top speed of high-performance saloons (sedans) and station wagons to 250 kilometers per hour (155 mph).   When the Suzuki Hayabusa motorcycle exceeded 310 km/h (190 mph) in 1999, fears of a European ban or regulatory crackdown led Japanese and European motorcycle makers to agree to a limit of 300 km/h (186 mph) in late 1999.  See List of fastest production motorcycles.