In the 1957 case American Airlines, Inc. v. North American Airlines, Inc., et al., the U.S Supreme Court ruled in favor of American Airlines (AA). The dispute arose when AA claimed that North American Airlines had infringed on its trademark by using a similar name and logo which could potentially confuse customers. The court agreed with this argument stating that even though there was no evidence of actual confusion or deception among consumers, it was enough to show potential for such confusion due to similarity in names and logos between two companies operating within the same industry. Therefore, North American Airlines was ordered to change its name and cease from using any insignia resembling those used by AA.

The dissenting opinion in the case of American Airlines, Inc. v. North American Airlines, Inc., et al., argued that the majority's decision to uphold a cease and desist order from the Civil Aeronautics Board was incorrect because it failed to consider whether or not there was substantial evidence supporting this action. The dissent contended that while American Airlines may have engaged in competitive practices against smaller airlines like North American, these actions did not necessarily constitute unfair methods of competition under Section 411 of the Federal Aviation Act. They believed that such an interpretation would unduly restrict larger carriers' ability to compete effectively and could potentially harm consumers by limiting their choices for air travel services.