Final answer:
The Supreme Court claimed the right to rule in Lochner v. New York on the grounds that the law infringed on 'liberty of contract' by restricting bakery workers' and management's ability to negotiate their own contracts.
Step-by-step explanation:
On the grounds that the law limiting the workday in bakeries violated the "liberty of contract", the Supreme Court claimed the right to rule in the Baker Case, specifically in Lochner v. New York. The decision, while controversial, was based on the idea that by prohibiting bakery employees from working more than ten hours per day, it infringed upon the rights of laborers and management to negotiate work contracts without excessive state intervention.
This ruling was part of a broader trend of cases where the Supreme Court weighed individual rights and freedoms against state regulations and public interest.