In the case of National Labor Relations Board v. Waterman Steamship Corp., 1939, the U.S Supreme Court ruled in favor of the National Labor Relations Board (NLRB). The NLRB had accused Waterman Steamship Corporation of unfair labor practices by interfering with, restraining and coercing its employees' rights to self-organization and collective bargaining. The company argued that it was not engaged in interstate commerce as defined under Section 2(6) and (7) of the National Labor Relations Act, thus exempt from NLRB's jurisdiction. However, the court held that since a substantial part of Waterman’s business involved transportation between states or foreign countries - which is considered interstate commerce - they were subject to regulation by federal law including compliance with fair labor practices stipulated by NLRB.

In the dissenting opinion for the National Labor Relations Board v. Waterman Steamship Corp., it was argued that the majority's decision to uphold a ruling by the National Labor Relations Board (NLRB) against Waterman Steamship Corporation was incorrect. The dissenters believed that there were no substantial evidence supporting NLRB’s findings and thus, they should not be upheld. They contended that while employees have a right to organize and bargain collectively under federal law, employers also have rights which must be respected - including their ability to manage their businesses effectively without undue interference from labor organizations or government agencies like NLRB. Furthermore, they asserted that in this case, Waterman had acted within its rights when it refused to negotiate with an unrepresentative union and dismissed striking workers who engaged in acts of insubordination or violence during a labor dispute.