In the 1941 case Peyton v. Railway Express Agency, Inc., the U.S Supreme Court ruled in favor of Railway Express Agency (REA). The plaintiff, Peyton, had filed a lawsuit against REA for damages caused by an alleged breach of contract and negligence. He claimed that REA failed to deliver his shipment on time which resulted in financial loss. However, the court found that there was no evidence proving that REA had guaranteed a specific delivery date or acted negligently during transportation. Furthermore, it was determined that even if such guarantee existed and was breached by late delivery or negligence on part of REA's employees causing damage to goods shipped under its bill of lading limiting liability unless declared value is stated at time shipment is made; recovery could not exceed actual loss suffered as result thereof nor amount declared at shipping time whichever is less.

In the dissenting opinion for Peyton v. Railway Express Agency, Inc., Justice Black argued that the majority's decision to uphold a Tennessee law prohibiting advertisements on vehicles was inconsistent with previous rulings of the Court and violated First Amendment rights. He contended that there was no compelling state interest in banning such advertisements, as they did not pose any danger to public safety or welfare. Furthermore, he pointed out that other forms of advertising were allowed under Tennessee law, suggesting an arbitrary enforcement of restrictions on commercial speech. In his view, this selective application infringed upon freedom of expression and equal protection principles enshrined in the Constitution.