In the case of Cedar Rapids Gas Light Company v. City of Cedar Rapids in 1911, the Supreme Court dealt with a dispute over a franchise agreement between a gas company and a city. The gas company had been granted exclusive rights to supply gas within the city for 25 years under an ordinance passed by the city council. However, after only ten years, another ordinance was passed which effectively ended this exclusivity by allowing other companies to also supply gas within the same area. The original company sued on grounds that their contract had been violated unconstitutionally as it impaired their contractual obligations. The Supreme Court ruled in favor of the City of Cedar Rapids stating that while contracts are generally protected from impairment by state law under Article I Section 10 Clause 1 (the Contract Clause) of U.S Constitution; however, there is no absolute immunity from changes or modifications if they serve public interest and welfare - especially when it comes to franchises related to public utilities like supplying gas where monopolies can be detrimental.

In the dissenting opinion for Cedar Rapids Gas Light Company v. City of Cedar Rapids, it was argued that the city's ordinance to regulate gas prices infringed upon the rights of private corporations and their ability to set fair rates based on market conditions. The justice believed that this case represented an overreach by local government into business affairs, which could potentially harm economic growth and development. Furthermore, they contended that such regulation should be left in the hands of state legislatures or Congress rather than municipal governments due to their greater understanding and experience with complex economic issues. They also expressed concern about potential bias within local governments towards favoring public interests over those of businesses operating within their jurisdictions.