The agreement, which was never ratified by Congress, required Japan to stop wasting passports on people who wanted to immigrate to America for work. The United States, in turn, would no longer allow discrimination and segregation of Japanese citizens residing in America. Despite its informal nature, the violation of a gentlemen`s agreement could have a negative impact on business relationships if a party decides to break its promise. A gentlemen`s agreement can also be called a “gentleman`s agreement” and may or may not be concluded by a handshake. Gentlemen`s agreements between industry and the U.S. government were common in the 1800s and early 1900s. The Bureau of Corporations, the predecessor of the Federal Trade Commission, was founded in 1903 to investigate monopolistic practices.