In the case of Continental Baking Co. et al. v. Woodring, Governor, et al., 1931, the U.S Supreme Court dealt with a dispute over state taxation on out-of-state corporations operating within Kansas State boundaries. The plaintiffs were two baking companies incorporated in Maine and Delaware but had business operations in Kansas where they manufactured and sold bakery products through branch shops or depots situated there. They challenged a tax imposed by Kansas law that required foreign corporations to pay an annual fee for doing business within its borders while domestic corporations did not have to pay such fees. The bakers argued this was discriminatory against interstate commerce and violated their Fourteenth Amendment rights under equal protection laws as well as Article I Section 8 of the Constitution (the Commerce Clause). However, the court ruled against them stating that since these businesses maintained physical presence in form of manufacturing plants and sales outlets within Kansas territory which constituted more than just engaging in interstate commerce; hence they could be subjected to local regulations including taxes without violating constitutional provisions.

The dissenting opinion in the case of Continental Baking Co. et al. v. Woodring, Governor, et al., argued that the majority's decision to uphold a Kansas statute regulating interstate commerce was incorrect and overstepped federal authority. The dissenters believed that this ruling interfered with Congress' exclusive power to regulate interstate commerce as outlined in the Constitution. They contended that while states have some regulatory powers within their borders, these should not extend into areas explicitly reserved for federal control such as interstate trade regulation. Furthermore, they expressed concern about potential negative impacts on businesses if each state were allowed to impose its own regulations on companies operating across state lines.