In Power Manufacturing Company v. Saunders, the U.S Supreme Court was tasked with determining whether a Kentucky state law that required foreign corporations to consent to service of process on an agent in order for them to do business within the state was constitutional. The plaintiff, Power Manufacturing Company, argued that this requirement violated their Fourteenth Amendment rights by depriving them of property without due process and denying equal protection under the laws. However, the court ruled against Power Manufacturing Company stating that it is not unconstitutional for a state to require foreign corporations doing business within its borders to appoint an agent who can accept legal papers on behalf of the corporation. This decision upheld states' rights over interstate commerce regulation and reinforced corporate obligations when operating across different jurisdictions.

In the dissenting opinion for Power Manufacturing Company v. Saunders, Justice Stone argued that the majority's decision to uphold a Kentucky law requiring foreign corporations to consent to service of process in all cases as a condition of doing business within the state was inconsistent with due process rights under the Fourteenth Amendment. He contended that this requirement imposed an undue burden on interstate commerce and violated constitutional protections against states interfering with federal authority over such matters. Furthermore, he disagreed with the majority's interpretation of precedent, asserting that previous rulings did not support such broad assertions of state power over foreign corporations. In his view, while states have some regulatory authority over businesses operating within their borders, they cannot compel companies to surrender fundamental legal protections simply because they engage in interstate commerce.