In the United States v. Wunderlich et al., 1951, the Supreme Court ruled on a case involving a dispute over contract terms between private contractors and the federal government. The contractors had agreed to an "all disputes" clause in their contract with the government that stated any decision made by the head of a department regarding contractual disagreements would be final and conclusive unless obtained through fraud or misrepresentation. When issues arose during construction, they were resolved unfavorably for Wunderlich and his co-contractors who then sued, arguing that such decisions could also be set aside if they were arbitrary or capricious. However, both lower courts upheld this clause as it was written into law under The Contract Settlement Act of 1944. The Supreme Court affirmed these rulings in an unanimous decision stating that while there may be valid reasons to allow judicial review of administrative decisions based on arbitrariness or capriciousness in other contexts; when it comes to contracts where parties have freely agreed upon terms including finality clauses like this one - those agreements must stand as is unless procured by fraud or misrepresentation.

In the dissenting opinion for United States v. Wunderlich et al., Justice Robert H. Jackson disagreed with the majority's decision to uphold a "no dispute" clause in government contracts, which effectively barred contractors from seeking judicial review of disputes arising from their contracts. He argued that this provision was contrary to principles of fairness and justice, as it allowed administrative officials to make final decisions on contractual disputes without any check or balance from an independent judiciary. Furthermore, he contended that such clauses could potentially lead to abuses of power by government officials who might be tempted to exploit their unreviewable authority over contract disputes for personal gain or other improper purposes. Therefore, he believed that these provisions should not be enforced unless they were explicitly authorized by Congress.