In the case of General Oil Company v. Crain, Inspector of Coal Oil in 1907, the U.S Supreme Court ruled on a dispute regarding state regulation and taxation powers over interstate commerce. The General Oil Company argued that Tennessee's inspection laws were unconstitutional as they interfered with interstate commerce by imposing taxes on oil brought into the state for sale. However, the court upheld Tennessee's right to regulate and tax products entering its jurisdiction from other states for public safety reasons under its police powers. It was determined that such regulations did not violate any federal law or constitutional provision relating to interstate commerce because it applied equally to all oils sold within the state regardless of their origin (in-state or out-of-state). Thus, this ruling affirmed states' rights to enact reasonable regulations and inspections necessary for public welfare without infringing upon federal control over interstate trade.

In the dissenting opinion for General Oil Company v. Crain, it was argued that the majority's decision to uphold a Tennessee law regulating oil sales violated principles of economic liberty and free trade among states. The dissenting justices believed that the state law interfered with interstate commerce by imposing restrictions on out-of-state businesses seeking to sell their products in Tennessee. They contended that such protectionist measures were unconstitutional as they infringed upon federal authority over interstate commerce, which is granted exclusively to Congress under the Commerce Clause of the U.S Constitution. Furthermore, they asserted that this ruling could set a dangerous precedent allowing states to enact laws favoring local industries at expense of out-of-state competitors, thereby undermining national economic unity and prosperity.