In the 1977 case of Southern Overlying Carrier Chapter of the California Dump Truck Owners Association et al. v. Public Utilities Commission of California, truck owners challenged a decision by the Public Utilities Commission (PUC) to allow railroads to set their own rates for hauling certain types of cargo without regulatory oversight. The truck owners argued that this would give railroads an unfair advantage and potentially drive them out of business. However, the Supreme Court ruled in favor of PUC, stating that it was within its authority to deregulate railroad rates as long as it did not result in discriminatory practices or harm public interest. This ruling affirmed PUC's power to regulate transportation services and underscored its role in promoting fair competition among different modes of transport.

The dissenting opinion in the case of Southern Overlying Carrier Chapter of the California Dump Truck Owners Association et al. v. Public Utilities Commission of California argued that the majority's decision was a misinterpretation and overreach of federal law, specifically regarding interstate commerce regulations. The dissenters believed that state regulatory authority should not be superseded by federal jurisdiction in this instance, as it pertains to intrastate transportation rates for dump trucks operating within California only. They contended that such regulation falls squarely within states' rights and does not interfere with or burden interstate commerce; hence, there is no need for preemption by federal law. Furthermore, they expressed concern about potential negative impacts on local businesses due to increased costs resulting from federally mandated rate changes which may not reflect local economic conditions accurately.