In the case of Montague & Company v. Lowry in 1903, the United States Supreme Court ruled on a dispute involving contract law and interstate commerce. The plaintiff, Montague & Co., had sold goods to Lowry under an agreement that payment would be made upon delivery. However, when the goods were delivered via railroad (which was common practice), they were damaged due to negligence by the carrier company during transit from New York to Tennessee. Despite this damage not being caused by either party involved in the sale contract, Lowry refused to pay for them citing their poor condition upon arrival as his reason. The court held that since it is customary for sellers like Montague & Co., who are located at a distance from buyers like Lowry, to send purchased goods through public carriers such as railroads; risk of loss or damage during transportation falls onto buyer unless otherwise agreed between parties involved in transaction beforehand. Therefore, despite damages incurred during shipment which weren't directly caused by seller's actions or omissions but rather third-party carrier's negligence; buyer still has obligation under sales contract terms agreed with seller - i.e., paying purchase price upon delivery regardless of item conditions received.

In the dissenting opinion for Montague & Company v. Lowry, it was argued that the majority's decision to uphold a tax on out-of-state businesses operating in Tennessee violated principles of interstate commerce. The dissenting justices believed that this tax unfairly burdened companies from other states and gave an unfair advantage to local businesses, thus interfering with free trade among states. They contended that such state-imposed taxes were unconstitutional as they infringed upon federal authority over interstate commerce under the Commerce Clause of the U.S Constitution. Furthermore, they disagreed with the majority's interpretation of previous court rulings on similar issues and maintained those cases did not support upholding such discriminatory taxation practices by individual states against out-of-state entities.