The U.S. Supreme Court case J.I. Case Co v. National Labor Relations Board in 1943 involved a dispute over collective bargaining rights between the J.I. Case Company and its employees, represented by the United Automobile Workers of America (UAW). The company had previously entered into individual employment contracts with its workers that included an agreement not to join a union for one year, which was challenged by the UAW as violating federal labor law under the Wagner Act of 1935 that protected workers' right to form unions and engage in collective bargaining. The Supreme Court ruled unanimously in favor of the National Labor Relations Board (NLRB) and against J.I. Case Co., stating that individual employment contracts cannot be used to limit or prevent collective bargaining rights guaranteed under federal law. The court held that such agreements were inconsistent with the purpose of national labor policy, which aimed at leveling power disparities between employers and employees through promoting collective action on part of workers.

In the dissenting opinion for J. I. Case Co. v. National Labor Relations Board, Justice Frank Murphy argued that individual employment contracts should not be invalidated by collective bargaining agreements unless they are in direct conflict with them or if the employee has voluntarily chosen to revoke it in favor of union representation. He contended that employees have a right to negotiate their own terms and conditions of employment without being forced into accepting those negotiated by a labor union on their behalf, especially when these individuals may not agree with or benefit from such terms as much as they would under an individual contract. This view upholds the principle of freedom of contract and respects an individual's autonomy over his/her work arrangements while still recognizing the importance and legitimacy of collective bargaining within certain contexts.