In the case of West Point Wholesale Grocery Co. v. City of Opelika, Alabama (1956), the U.S Supreme Court was asked to determine whether a city ordinance that required businesses located outside city limits but delivering goods within them to pay a license tax violated the Commerce Clause or Equal Protection Clause of the Constitution. The appellant, West Point Wholesale Grocery Co., argued that it did because they were being taxed for business activities conducted entirely outside city boundaries and thus beyond its jurisdictional reach. The court ruled in favor of Opelika, upholding the validity of their ordinance under both clauses. It held that as long as there is some minimal connection between a municipality and an out-of-town company doing business within its borders - such as deliveries made by said company - then imposing a local license fee does not violate either clause mentioned above. This decision affirmed municipalities' rights to levy taxes on out-of-town companies making deliveries within their jurisdictions without violating constitutional principles related to interstate commerce or equal protection.

The dissenting opinion in the case of West Point Wholesale Grocery Co. v. City of Opelika, Alabama argued that the majority's decision to uphold a city ordinance imposing a license tax on businesses operating outside its limits but delivering goods within them was incorrect and inconsistent with previous rulings. The dissenters believed that such an ordinance violated the Commerce Clause by placing undue burdens on interstate commerce, as it essentially allowed local governments to levy taxes on out-of-state businesses for activities conducted entirely beyond their jurisdictional boundaries. They also contended that this ruling contradicted earlier decisions which held similar ordinances unconstitutional due to their discriminatory nature against non-local entities engaging in interstate commerce.