In the case of Old Dearborn Distributing Co. v. Seagram-Distillers Corp., 1936, the U.S Supreme Court ruled on a dispute involving trademark infringement and unfair competition. The plaintiff, Old Dearborn Distributing Company, alleged that Seagram-Distillers Corporation had infringed upon its trademark rights by using similar labels for their products which caused confusion among consumers and resulted in loss of sales for Old Dearborn. The defendant argued that they were not liable as there was no intent to deceive or cause confusion among customers. The court held in favor of the plaintiff stating that even without an intention to deceive or confuse customers, if such confusion is likely due to similarities between trademarks then it constitutes infringement under federal law. Furthermore, it was noted that protection against unfair competition extends beyond mere copying and includes any practice likely to mislead the public into buying one product under belief it is another.

In the dissenting opinion for Old Dearborn Distributing Co. v. Seagram-Distillers Corp., Justice Stone argued that the majority's decision was a departure from established principles of federal jurisdiction and constitutional law, which he believed should have led to a different outcome in this case. He contended that the plaintiff's claim arose under state law, not federal law, so it should not have been heard by a federal court in the first place. Furthermore, he disagreed with the majority's interpretation of Illinois' liquor control act as violating due process rights under Fourteenth Amendment because it allowed manufacturers to dictate prices at which their products could be sold by wholesalers or retailers without any regulatory oversight or standards for fairness.