In the case of National Labor Relations Board v. Sands Manufacturing Co., the U.S Supreme Court ruled in favor of the National Labor Relations Board (NLRB). The court held that Sands Manufacturing Company was guilty of unfair labor practices under Section 8(1) and Section 8(3) of the National Labor Relations Act, also known as Wagner Act. The company had interfered with its employees' rights to self-organize and bargain collectively by discharging several workers due to their union activities. Furthermore, it refused to reinstate these employees after they ceased their strike action against unfair labor practices. This ruling affirmed NLRB's authority in enforcing fair labor standards among employers, ensuring protection for workers' rights.

In the dissenting opinion for the National Labor Relations Board v. Sands Manufacturing Co., Justice McReynolds disagreed with the majority's decision to uphold a ruling by the National Labor Relations Board (NLRB) that found Sands Manufacturing in violation of labor laws. He argued that there was insufficient evidence to support such a finding and criticized what he saw as an overreach by both NLRB and federal courts into matters better left to state jurisdiction. Furthermore, he expressed concern about potential bias within NLRB due its dual role as investigator and judge in labor disputes, suggesting it could not impartially adjudicate cases it had investigated itself. Lastly, Justice McReynolds questioned whether Congress even had constitutional authority under commerce clause to regulate labor relations at this level.