In the case of Regal Knitwear Co. v. National Labor Relations Board, 1944, the Supreme Court ruled that a company could be held accountable for unfair labor practices even if it was not directly involved in those practices but had acquired assets from another company previously found guilty of such actions by the National Labor Relations Board (NLRB). The court upheld an NLRB order against Regal Knitwear Company which required them to cease and desist from certain unfair labor practices originally committed by F&R Lazarus & Co., whose assets they had purchased. The decision clarified that successor companies cannot escape liability for their predecessors' violations of workers’ rights under federal law and emphasized the importance of maintaining good faith bargaining between employers and employees.

The dissenting opinion in the case of Regal Knitwear Co. v. National Labor Relations Board argued that the majority's decision to uphold the NLRB's cease and desist order against Regal was an overreach of authority, infringing upon state jurisdiction and individual rights. The dissent contended that while federal labor laws should be enforced, they must not supersede states' rights or interfere with private business operations beyond what is necessary for ensuring fair labor practices. They believed that by extending its power to include a company not directly involved in unfair labor practices but merely associated with one guilty of such actions, the NLRB had exceeded its mandate under the National Labor Relations Act (NLRA). Furthermore, this extension could potentially lead to unjustified interference into businesses' affairs based on mere association rather than actual violation of law.