The Pacific Coast Dairy, Inc. v. Department of Agriculture of California case in 1942 revolved around the issue of milk price regulation by the state government. The Supreme Court ruled that a California law setting minimum prices for milk was constitutional and did not violate the due process clause or equal protection clause under the Fourteenth Amendment to the U.S Constitution. The court held that such regulations were within a state's police power if they served to prevent destructive competition in an industry vital to public health and welfare like dairy farming is considered to be. This decision affirmed states' rights over economic regulation, reinforcing their ability to intervene when necessary for public interest.

The dissenting opinion in the case of Pacific Coast Dairy, Inc. v. Department of Agriculture of California et al., 1942 argued that the majority's decision to uphold a state law requiring milk distributors to pay minimum prices set by a state agency was unconstitutional. The dissenters believed this violated the Commerce Clause as it interfered with interstate commerce and gave an unfair advantage to local producers over out-of-state competitors. They also contended that such regulation went beyond what was necessary for public health or safety, infringing on economic liberties protected under due process clause of Fourteenth Amendment. Furthermore, they criticized the majority's reliance on Nebbia v New York (1934), arguing its broad interpretation allowed virtually any economic regulation regardless of its impact on individual rights or federalism principles.