In the 1931 case McCormick & Co., Inc. et al. v. Brown, State Commissioner of Prohibition of West Virginia, et al., the U.S Supreme Court ruled in favor of McCormick & Co., a manufacturer and distributor of non-alcoholic beverages that contained small amounts of alcohol as byproducts from flavoring extracts used in their production process. The state prohibition commissioner had previously seized these products under the claim they violated West Virginia's prohibition laws due to their trace alcohol content. However, the court held that such seizure was unconstitutional because it interfered with interstate commerce and exceeded enforcement powers granted by federal law on alcoholic beverages - which did not consider such drinks as intoxicating liquors subject to regulation or ban under national prohibition laws.

In the dissenting opinion for McCormick & Co., Inc. et al. v. Brown, State Commissioner of Prohibition of West Virginia, et al., Justice Stone argued that the majority's decision was inconsistent with previous rulings regarding state regulation of interstate commerce and violated principles of federalism by allowing states to regulate beyond their borders. He contended that while states have a right to protect public health and safety within their jurisdiction, they should not be allowed to control or restrict lawful activities in other states under the guise of protecting its citizens from potential harm caused by such out-of-state activities. In this case, he believed that West Virginia had overstepped its authority by prohibiting importation and sale within its borders alcoholic beverages lawfully manufactured and sold in another state (Maryland), thereby interfering with interstate commerce which is constitutionally regulated exclusively by Congress.