The United States v. P. Lorillard Company case in 1924 revolved around the issue of taxation and whether or not a tobacco manufacturer, P. Lorillard Company, was liable to pay taxes on discarded tobacco stems that were sold as by-products after the manufacturing process. The company argued that these stems were waste products and therefore should not be subject to tax under the Revenue Act of 1918 which imposed an excise tax on manufactured tobacco products. However, the Supreme Court ruled against this argument stating that since these stems could still be used for making other types of tobacco products such as snuff or smoking mixtures, they fell within the definition of "manufactured" goods according to Section 900(5) of said act and hence taxable.

In the dissenting opinion for UNITED STATES v. P. LORILLARD COMPANY, 1924, it was argued that Lorillard Company should not be held liable for antitrust violations because they did not have monopoly power in the tobacco market and their actions were driven by competitive business strategies rather than an intent to stifle competition or create a monopoly. The dissenting justices believed that the majority's decision could potentially harm businesses by discouraging them from engaging in legitimate competitive practices out of fear of being accused of violating antitrust laws. They also expressed concern about the potential negative impact on consumers if companies are discouraged from pursuing aggressive pricing strategies or other tactics designed to win customers away from competitors.