The U.S. Supreme Court case Chicago & Northwestern Railway Company v. C.C. Whitnack Produce Company in 1921 revolved around the issue of whether a railroad company could be held liable for damages to goods during transportation due to extreme weather conditions, specifically frost damage to potatoes being transported by the railway company. The court ruled that under the Carmack Amendment, which governs liability for loss or damage occurring during interstate shipment under a bill of lading, carriers are not exempt from liability unless they can prove that they were free from negligence and that the damage was caused solely by an act of God or public enemy, inherent vice or nature of the property, or default on part of shipper. In this case, since there was no evidence proving any exception applied and it appeared as though reasonable precautions against cold had not been taken by carrier despite warnings about potential freezing temperatures along route; therefore making them negligent in their duty as carriers; hence liable for damages.

In the dissenting opinion for Chicago & Northwestern Railway Company v. C.C. Whitnack Produce Company, it was argued that the majority's decision to hold a carrier liable for damages caused by delay in transit due to an embargo, which was beyond its control, contradicts established principles of contract and common law. The dissent emphasized that carriers cannot be held responsible for events outside their reasonable control or foresight - such as governmental orders or natural disasters - and should not bear financial responsibility when these circumstances prevent them from fulfilling contractual obligations. It further contended that this ruling could set a dangerous precedent where carriers are expected to assume risks they have no power over, potentially leading to unjust outcomes in future cases.