In the case of United States v. Factors & Finance Co., 1932, the Supreme Court examined whether a corporation could be held criminally liable for acts committed by its officers and agents within their scope of employment, even if these actions were against corporate policy or instructions. The defendant company was charged with conspiracy to defraud the U.S government through fraudulent customs declarations made by its employees. The court ruled in favor of the government, establishing that corporations can indeed be held responsible for crimes committed by their agents acting within their authority's scope. This decision set an important precedent regarding corporate criminal liability in American law.

In the dissenting opinion for the United States v. Factors & Finance Co., Justice Stone argued that the majority's interpretation of Section 2(a) of the Bankruptcy Act was incorrect. He contended that this section should be interpreted to mean that a debtor in possession has all rights and powers, including those related to property transfers, as an appointed trustee would have under Section 70(e). Therefore, he believed that any transfer made by a debtor while insolvent could be set aside if it occurred within four months before filing bankruptcy petition. In his view, such interpretation would align with Congress' intent when they enacted these provisions - to prevent fraudulent conveyances and preferential transfers which deplete assets available for distribution among creditors. The majority's decision not only contradicted this legislative purpose but also created an unjustifiable distinction between debtors in possession and trustees.