In the 1973 case of Golden State Bottling Co., Inc. v. National Labor Relations Board, the Supreme Court ruled in favor of an employee who was unfairly dismissed for union activities by a company that was later sold to another entity. The court held that under federal labor law, a successor employer could be required to remedy unfair labor practices committed by its predecessor if it continues substantially similar operations and has notice of the charge before acquiring control over the business. This decision expanded protections for workers' rights and clarified responsibilities for businesses during transitions or sales.

In the dissenting opinion for Golden State Bottling Co., Inc. v. National Labor Relations Board, Justice Rehnquist argued that the majority's decision to hold a successor corporation liable for its predecessor’s unfair labor practices was not supported by precedent or statute. He contended that this ruling would discourage business transactions and mergers, as potential buyers would be wary of inheriting unknown liabilities from previous owners' actions which they had no control over. Furthermore, he believed it was inappropriate to impose such liability without clear congressional intent in the legislation governing these matters - The National Labor Relations Act (NLRA). According to him, there were other remedies available under NLRA against wrongdoers themselves rather than imposing penalties on innocent third parties who merely purchased assets of those entities.