In the case of Air-Way Electric Appliance Corporation v. Day, Treasurer of the State of Ohio et al., 1924, the Supreme Court was asked to determine whether a state tax on foreign corporations violated constitutional principles. The Air-Way Electric Appliance Corporation, incorporated in Delaware but operating extensively in Ohio, challenged an annual excise tax imposed by Ohio law on all foreign corporations doing business within its borders. The corporation argued that this tax infringed upon their rights under both the Due Process and Equal Protection Clauses of the Fourteenth Amendment as well as interfered with interstate commerce contrary to Article I Section 8 Clause 3 (the Commerce Clause) of US Constitution. The Supreme Court upheld the constitutionality of Ohio's taxation scheme. It ruled that states have broad powers to levy taxes for revenue purposes and such power extends even over businesses incorporated elsewhere but operating within their jurisdictional boundaries. Furthermore, it held that there was no violation either against due process or equal protection since domestic and foreign corporations were treated alike regarding franchise taxes based on capital employed in-state; nor did it infrally interfere with interstate commerce because it wasn't discriminatory or protective measure against out-of-state entities.

The dissenting opinion in the case of Air-Way Electric Appliance Corporation v. Day, Treasurer of the State of Ohio, et al., argued that the tax imposed by Ohio on foreign corporations was not a violation of due process or equal protection under law. The dissent emphasized that states have broad powers to regulate and tax businesses within their borders, including those incorporated elsewhere. It also pointed out that there is no constitutional requirement for taxes to be apportioned based on a company's activities in different states; rather, it is entirely up to individual state legislatures how they choose to levy taxes. Furthermore, it disagreed with the majority's view that this particular tax constituted an undue burden on interstate commerce because it did not discriminate against out-of-state companies nor did it create any direct commercial advantage for local businesses.