In the case of Alaska Industrial Board et al. v. Chugach Electric Association, Inc., et al., 1957, the U.S Supreme Court ruled in favor of Chugach Electric Association (CEA). The dispute arose when CEA refused to pay a tax levied by the Territory of Alaska's Industrial Board on utilities that generated electricity for public consumption. CEA argued that as a non-profit cooperative organization, it was exempt from such taxation under Alaskan law which provided an exemption for "cooperative marketing associations". The court agreed with this interpretation and held that although CEA was not engaged in 'marketing', its operations were similar enough to those described in the statute to warrant application of the exemption clause. Therefore, it concluded that CEA should be considered a cooperative association within meaning of tax-exemption provision and thus could not be subjected to said utility taxes.

In the dissenting opinion for Alaska Industrial Board v. Chugach Electric Association, Inc., it was argued that the majority's decision to uphold a state law requiring nonresidents to pay an employment tax violated the Privileges and Immunities Clause of Article IV of the U.S. Constitution. The dissent contended that this clause guarantees citizens in each state all privileges and immunities granted by other states, including equal treatment under taxation laws. They believed that imposing a higher tax on nonresident workers simply because they were not residents was discriminatory and unconstitutional. Furthermore, they disagreed with the majority's assertion that this case did not involve interstate commerce or federal jurisdiction; instead, they maintained that any regulation affecting individuals moving across state lines inherently involves interstate commerce and thus falls within federal purview.