In the case of H.P. Hood & Sons, Inc. v. Du Mond, Commissioner of Agriculture and Markets in 1948, the U.S Supreme Court ruled that a state cannot use its powers to protect local economic interests by burdening interstate commerce. The dispute arose when New York's Commissioner of Agriculture and Markets denied a license to Massachusetts-based dairy company H.P Hood & Sons for an additional milk receiving station in New York State on grounds that it would lead to destructive competition with existing local businesses. The court held this action as unconstitutional under the Commerce Clause because it interfered with free trade among states - even though there was no discrimination against out-of-state goods or direct regulation of interstate commerce involved.

The dissenting opinion in H.P. Hood & Sons, Inc. v. Du Mond argued that the majority's decision was a misinterpretation of the Commerce Clause and an overreach of federal power into state affairs. The dissenters believed that New York State had acted within its rights to deny a license for additional milk receiving stations based on economic protectionism and public interest considerations such as preventing market oversaturation or protecting local farmers from price depression caused by excessive competition. They contended that states should have the authority to regulate their own economies without undue interference from federal authorities unless there is clear discrimination against interstate commerce, which they did not believe was present in this case.