In the case of Kroger Grocery & Baking Co. v. Lutz, Attorney General of Indiana et al., 1936, the U.S Supreme Court ruled in favor of Kroger Grocery and Baking Company. The company had challenged an Indiana law that required all bread to be sold by weight rather than by loaf size or count as it was considered a violation of due process under the Fourteenth Amendment. The court agreed with Kroger's argument that this law was arbitrary and unreasonable because it did not take into account variations in ingredients or baking methods which could affect the weight but not necessarily quality or value for money for consumers. Therefore, they concluded that such regulation exceeded state police power limits and violated constitutional rights protected under the Due Process Clause.

In the dissenting opinion for Kroger Grocery & Baking Co. v. Lutz, it was argued that the state of Indiana had not violated any constitutional rights by imposing a tax on chain stores operating within its borders. The dissenting justices believed that states have the right to regulate commerce and levy taxes as they see fit in order to protect local businesses from unfair competition posed by large chains like Kroger's. They further contended that such taxation does not infringe upon interstate commerce or violate equal protection laws because all chain stores are taxed equally based on their number of locations, regardless of whether they operate across state lines or solely within Indiana's borders. Therefore, according to this view, there is no discriminatory treatment against out-of-state companies nor undue burden placed on interstate business activities.