The Supreme Court case American Society of Mechanical Engineers, Inc. v. Hydrolevel Corp., 1981 centered around a dispute between the American Society of Mechanical Engineers (ASME), a professional standards organization, and Hydrolevel Corporation, a manufacturer of safety devices for boilers. ASME had falsely informed one of Hydrolevel's customers that its product did not meet their safety standards due to misleading information provided by competitors who were involved in ASME's decision-making process. The court ruled in favor of Hydrolevel stating that ASME was liable under antitrust laws for damages caused by false statements made negligently during its standard-setting processes even though it is a non-profit organization without any motive to harm competition or derive an economic benefit from such actions. This ruling emphasized the importance and influence professional organizations have on market competition through their ability to set industry standards.

In the dissenting opinion for American Society of Mechanical Engineers, Inc. v. Hydrolevel Corp., Justice Powell argued that non-profit organizations should not be held liable for damages caused by their agents' actions if those actions were outside the scope of their authority and contrary to organizational policy. He contended that this ruling could potentially expose a wide range of non-profit organizations to liability risks they cannot control or predict, which would ultimately harm these entities’ ability to serve public interests effectively. Furthermore, he disagreed with the majority's interpretation of antitrust laws as intending to regulate internal affairs within professional societies like ASME (American Society of Mechanical Engineers). Instead, he believed such laws aimed at preventing commercial enterprises from engaging in anti-competitive behavior rather than policing ethical standards within professional bodies.