In the 1945 case S. R. A., Inc. v. Minnesota, the U.S Supreme Court ruled on a dispute involving state taxation of an interstate business operation and its constitutionality under the Commerce Clause of the United States Constitution. The appellant, S.R.A., Inc., was a Delaware corporation with its principal place of business in New York that provided services to clients across several states including Minnesota where it had no office or employees based permanently but did have representatives visiting regularly for client meetings and service provision. The State of Minnesota sought to impose income tax on S.R.A.'s earnings derived from within their jurisdiction arguing that these activities constituted sufficient nexus for taxation purposes despite being part of an interstate commerce operation which is generally protected from state-level regulation by the Commerce Clause. The Supreme Court upheld Minnesota's right to levy this tax ruling that while states cannot impede free flow of commerce among them, they can still require fair contribution towards cost incurred as result thereof if there is substantial nexus between economic activity taxed and taxing state along with fair apportionment so as not burdening interstate commerce unduly.

In the dissenting opinion for S. R. A., INC. v. MINNESOTA, Justice Robert H Jackson argued that the majority's decision to uphold Minnesota's Fair Trade Act was a departure from traditional principles of free competition and individual liberty in business dealings. He contended that this law allowed manufacturers to impose price restrictions on retailers even if they were not party to any agreement, which he believed violated constitutional rights and threatened economic freedom by creating monopolies or cartels under state protection rather than market forces. Furthermore, he expressed concern about potential abuse of such laws by powerful corporations at the expense of small businesses and consumers who would be forced to pay higher prices without receiving any benefits in return.