In the 1947 case of Bakery Sales Drivers Local Union No. 33 et al. v. Wagshal, trading as Wagshal's Delicatessen, the U.S Supreme Court ruled in favor of a local union that had been sued by a deli owner for allegedly violating antitrust laws through their collective bargaining agreement with bakery employers. The deli owner claimed that this agreement resulted in higher prices and restricted competition because it required drivers to refuse delivery from non-union bakeries or those not complying with certain wage standards set by the union contract. The court held that labor unions were exempt from antitrust laws when pursuing legitimate labor objectives such as improving wages and working conditions for their members; thus, they could lawfully agree to only handle goods produced under fair labor standards without being accused of restraint trade practices. This decision reinforced protections for organized labor against accusations of anti-competitive behavior while also emphasizing the importance of maintaining fair labor practices within industries.

In the dissenting opinion for Bakery Sales Drivers Local Union No. 33 et al. v. Wagshal, trading as Wagshal's Delicatessen, Justice Frankfurter argued that the majority had incorrectly interpreted and applied the National Labor Relations Act (NLRA). He contended that a union's refusal to handle goods from an employer involved in a labor dispute did not constitute an unfair labor practice under Section 8(b)(4) of NLRA unless it was aimed at forcing another employer or person to cease doing business with said employer. In this case, he believed there was no evidence showing such intent by the union against Wagshal’s Delicatessen; rather they were merely exercising their right to solidarity in refusing to handle 'unfair' goods produced by non-union workers during a strike at another bakery company which supplied bread products to Wagshal’s Delicatessen.