In the 1940 case of Caskey Baking Co., Inc. v. Virginia, the U.S Supreme Court ruled in favor of Virginia, upholding a state law that regulated interstate commerce by requiring out-of-state bakeries to obtain a license and pay an annual fee before selling their products within the state. The plaintiff, Caskey Baking Company - an out-of-state bakery - argued that this law violated its rights under both the Commerce Clause and Equal Protection Clause of the Constitution. However, the court disagreed with these arguments stating that states have broad powers to regulate businesses operating within their borders for public health reasons even if they engage in interstate commerce.

The dissenting opinion in the case of Caskey Baking Co., Inc. v. Virginia argued that the majority's decision to uphold a state law requiring out-of-state bakers to obtain a license and pay an annual fee was unconstitutional. The dissenters believed this violated the Commerce Clause, which gives Congress exclusive power over interstate commerce. They contended that by allowing individual states to impose their own regulations on out-of-state businesses, it would create a patchwork of laws that could hinder trade between states and potentially lead to economic protectionism at the state level. Furthermore, they disagreed with the majority's assertion that health concerns justified these restrictions; arguing instead there were other ways for states to ensure public safety without infringing upon interstate commerce rights.