In the United States v. New York Central and Hudson River Railroad Company case of 1908, the U.S Supreme Court ruled that a corporation could be held criminally liable for the actions of its employees if those actions were performed within their employment scope. The case arose when an employee of the railroad company gave illegal rebates to shippers in violation of federal law. Although this was done without explicit permission from senior management, it was found to have been carried out with implied consent as part of his job duties. Therefore, it was determined that corporations could not escape liability by claiming ignorance or lack of direct involvement in unlawful activities conducted by their employees on behalf of them. This landmark decision established corporate criminal liability under American law and has had significant implications for corporate governance ever since.

In the dissenting opinion for United States v. New York Central and Hudson River Railroad Company, Justice Moody argued that corporations should not be held criminally liable for the actions of their employees unless it can be proven that those in control of the corporation had knowledge or gave consent to such actions. He contended that criminal liability is personal and cannot justly extend beyond individuals who commit unlawful acts with intent. The majority's decision to hold a corporation responsible for an employee's unauthorized act was seen by Justice Moody as a departure from established principles of criminal law, which he believed could lead to unjust outcomes. Furthermore, he expressed concern about potential misuse of this ruling by prosecutors against innocent companies based on wrongful acts committed by rogue employees without corporate approval or awareness.