In the case of United States v. American Union Transport, Inc., et al., 1945, the U.S Supreme Court was tasked with determining whether or not a shipping company could be held liable for damages to cargo that occurred during World War II. The government had contracted with American Union Transport and other companies to transport war materials overseas. However, some of these shipments were damaged due to enemy action and perils of the sea which were beyond control of the carriers. The government sought compensation from these companies for their losses. The court ruled in favor of American Union Transport and its co-defendants stating that they cannot be held responsible for such damages as they happened due to circumstances beyond their control - specifically citing "war risks" as an exception under common law principles governing bills-of-lading contracts (contracts between shipper and carrier). This decision established a precedent regarding liability limitations in situations involving uncontrollable events like war.

The dissenting opinion in the case of United States v. American Union Transport, Inc., et al., argued that the majority's decision to uphold a federal statute requiring all U.S.-flag ships to be built domestically was incorrect. The dissenters believed this law violated international trade agreements and unfairly restricted competition in shipbuilding. They also disagreed with the majority's interpretation of Congress' power under the Commerce Clause, arguing that it did not extend to regulating where ships could be built. Furthermore, they contended that such protectionist policies would harm rather than help domestic industries by discouraging innovation and efficiency improvements due to lack of foreign competition.