In the case of National Labor Relations Board v. Highland Park Manufacturing Co., the Supreme Court ruled in favor of the National Labor Relations Board (NLRB). The NLRB had found that Highland Park Manufacturing Company was guilty of unfair labor practices, including interfering with its employees' rights to self-organize and bargain collectively. The company argued that it did not have to comply with a cease-and-desist order from the NLRB because it was engaged in interstate commerce, which is regulated by Congress rather than individual states. However, the Supreme Court upheld that under Section 10(e) of the National Labor Relations Act, courts must enforce orders issued by federal agencies like NLRB unless there is no evidence supporting their findings or if they overstepped their authority. In this case, neither exception applied; therefore, Highland Park Manufacturing Co.'s refusal to comply constituted an illegal act.

In the dissenting opinion for the National Labor Relations Board v. Highland Park Manufacturing Co., Justice Robert H. Jackson argued that the majority's decision to uphold a cease and desist order against Highland Park was an overreach of federal power, infringing on states' rights. He contended that North Carolina law should govern labor relations within its borders, not federal legislation like the Wagner Act (National Labor Relations Act). Furthermore, he criticized how broadly "interstate commerce" was interpreted in this case to justify federal jurisdiction. According to him, if every local industrial dispute could be considered as having a substantial effect on interstate commerce merely because it might affect production costs or volume of goods produced for interstate shipment then virtually all aspects of industry would fall under national control which is contrary to our constitutional design.