In the case of Cosmopolitan Club v. Commonwealth of Virginia, 1907, the U.S Supreme Court upheld a decision by lower courts that found The Cosmopolitan Club guilty of violating Virginia's liquor laws. The club was selling alcohol without a license and claimed it should be exempt from state regulations because its transactions were part of interstate commerce. However, the court ruled that once goods have reached their destination and are no longer in transit, they become subject to local law enforcement jurisdiction. Therefore, even though the alcohol was originally shipped from out-of-state locations to members within Virginia via express companies or mail carriers (which would typically fall under federal jurisdiction), these sales became subject to state regulation as soon as they arrived at their intended location - in this case being inside Virginia’s borders where such sale is prohibited without a license.

In the dissenting opinion for Cosmopolitan Club v. Commonwealth of Virginia, Justice Harlan argued that the majority's decision was inconsistent with previous rulings and infringed upon individual rights. He contended that a private club should not be subject to public accommodation laws as it is not a place of public entertainment or amusement but rather an association formed for social interaction among its members. Furthermore, he asserted that this ruling could potentially lead to unwarranted interference in other private associations such as religious organizations or political clubs if they were deemed discriminatory by state law. In essence, Harlan believed this case represented an overreach of government power into private affairs and violated constitutional principles protecting freedom of association.