In the 1974 case MTM, Inc., et al. v. Baxley, Attorney General of Alabama, et al., the U.S Supreme Court ruled on a dispute involving freedom of speech and assembly rights under the First Amendment. The plaintiffs were an organization that wanted to hold a meeting in Birmingham, Alabama but were denied permission by city officials due to concerns about potential violence and public disorder. The group sued for violation of their constitutional rights. In its decision, the Supreme Court held that while cities have legitimate interests in preventing violence and maintaining public order, they cannot use these concerns as grounds for broadly suppressing free speech or assembly rights without demonstrating clear evidence of imminent danger or threat posed by such activities.

In the dissenting opinion for MTM, Inc. v. Baxley, Justice William Rehnquist argued that the majority's decision to strike down Alabama's franchise tax law was incorrect and overstepped their authority. He contended that it is not within the Supreme Court’s jurisdiction to decide whether a state tax is fair or unfair; rather, this should be left up to each individual state legislature. Furthermore, he disagreed with the majority’s interpretation of interstate commerce laws in relation to taxation and believed they had misapplied precedent from previous cases on this issue. Ultimately, Justice Rehnquist felt that by invalidating Alabama's franchise tax law based on these grounds, the court was improperly interfering with states' rights and powers.