In Berea College v. Commonwealth of Kentucky, the U.S Supreme Court upheld a Kentucky law that prohibited racial integration in private and public schools. Berea College, a private institution with an inclusive admission policy since its founding in 1855, was convicted for violating this state law by admitting both black and white students. The college appealed to the Supreme Court arguing that the statute violated their constitutional rights under the Fourteenth Amendment's Equal Protection Clause and Contract Clause. However, in a 7-2 decision delivered by Justice Brewer, the court ruled against Berea College stating that states have broad power over corporations including educational institutions within their jurisdiction; hence they could regulate or prohibit certain practices such as integrated education if deemed necessary for social welfare. This ruling reinforced segregation policies until it was overturned later during civil rights movements.

In the dissenting opinion for Berea College v. Commonwealth of Kentucky, Justice John Marshall Harlan argued that the state law prohibiting private educational institutions from teaching black and white students together was unconstitutional. He contended that this legislation violated both the spirit and letter of the Fourteenth Amendment, which guarantees equal protection under law to all citizens regardless of race or color. Harlan believed that it was not within a state's power to control who could attend a private institution like Berea College; such decisions should be left up to individual schools themselves. Furthermore, he asserted that racial segregation in education inherently created inequality by implying one race is inferior to another - an idea fundamentally at odds with American principles of justice and equality.