Informal and non-binding arrangements between parties, frequently occurring in early 20th century American history, characterized a type of understanding typically aimed at restricting opportunities for specific groups. An example includes understandings between company management and employees to exclude individuals based on race, ethnicity, or religion from employment or promotion.
These arrangements, while not legally enforceable, often wielded significant influence due to the power dynamics and social norms of the time. The impact resulted in systemic discrimination, limiting access to education, housing, and economic advancement for affected populations. Their existence illustrates a period of overt prejudice and the challenges faced by marginalized communities in seeking equality.