Legal Environment of Business CH 23 Administrative Agencies

An administrative agency can issue an "interpretive rule" through an informal method of policymaking.

true

Congress can "freeze" the enforcement of a regulation before it takes effect.

true

Congress can create new federal administrative agencies.

true

The major function of an administrative agency is rule making.

true

Administrative Agencies can conduct warrantless searches.

False. Administrative Agencies can only conduct warrantless searches in highly regulated industries.

When a court reviews an appeal from an administrative decision, the court does not consider the Administrative Law Judge's decision.

False. Courts give deference (usually accpet the agency's judgment) to ALJ's decisions.

The Freedeom of Information Act requires the federal government to discose certain records so long as the person requesting the records provides a reason for the request.

False. The record request does not require any statement explaining why the records are being requested.

Warrants are not required to search highly regulated industries like coal mines, nuclear plants or liquor agencies.

True

The President cannot veto a congressional attempt to modify an agencies authority.

True, but Congress can override the veto with a 2/3 majority vote.

Administrative Agencies may only exercise powers designated by Congress.

True.

If an Adminstrative Agency files a complaint against a business, the business is not required to attend the hearing.

True. The business doesn't have to attend the hearing, but it would be foolish not to attend and present evidence in defense of the agency's coplaint against it.

A regulated party can take a dispute over an administation regulation to court rather than going through the administrative adjudicatory process.

false. All administrative remedies must be exhausted before a complaining party can appeal to a federal court.

Congress may create a state agency as a parallel agency to a federal agency to provide similar services on a local basis.

false. Congress has the power to create federal agencies. State constitutions permit legislators to create parallel state agencies.

Once an agency has been created, it cannot be abolished.

false. Congress has the power to create or abolish administrative agencies.

Congress issues "legislative rules" when it creates an administrative agency.

false. Congress leaves the rulemaking to the administrative agency.

Enabling legislation is passed by an administrative agency before it begins any regulatory activities.

false. Enabling Legislation allows congress to create an administrative agency specifying the name, purposes, functions and powers of the agency.

The major function of an administrative agency is the enforcement of its administrative rules.

false. Enforcement of rules is critical, but the major function of administrative agencies is rule making.

Final administrative rules do not have a binding legal effect.

false. Final Administrative Rules are binding and published in the Code of Federal Regulations.

Judicial review of administrative agency actions is automatic.

false. For courts to judicially review an action, there must be an appeal.

A federal administrative agency must follow formal procedures to make policy.

false. For policymaking, such as guidance documents, there are no formal procedures.

Under the Regulatory Flexibility Act, administrative agencies have the flexibility to issue any regulation that impacts small businesses.

false. If a new regulation impacts a substantial number of small business entitities, the agency must conduct a regulatory flexibility analysis prior to issuing a new administrative regulation.

The executive, judicial, and legislative branches of government do not exercise any control over administrative agency powers and functions.

false. The framers intended checks and balances.

2. Administrative agencies issue administrative regulations.

true

A federal administrative agency may exercise only those powers that Congress delegates to it.

true

Administrative agencies create administrative law.

true

Administrative agencies can obtain information through on-site searches of businesses.

true, if the business agrees to the inspection. Most businesses comply.

A federal administrative agency must publish notice of a proposed administrative rule change and then allow time for persons to comment on the rule.

true.

Administrative agencies have the power to resolve disputes through formal adjudication.

true.

If no party appeals an order made after an adjudicatory hearing, the decision becomes a final order of the agency

true.

The judicial branch exercises control over administrative agencies through its review of agency actions.

true.

An administrative law judge makes determinations of facts

true. Administrative law judges conduct hearings similar to trials.

An agency action may be set aside if it is arbitrary or capricious.

true. Congress enacted APA to give courts more judicial control over agencies. As such, a party can challenge an administrative regulation as to be arbitrary and capricious.

Congress can review new federal regulations before they take effect.

true. Congress may review new federal regulations for at least 60 days before they take effect.

Most disputes over administrative actions are resolved through negotiated settlements at their initial stages.

true. If disputes aren't resolved through negotiation, the agency may file a formal complaint.

Interested parties must be given an opportunity to express their views on a proposed agency rule.

true. Notice of the proposed administrative rule is required before a new regulation is enacted.

Any party to a case may appeal the order of an administrative law judge to the board or commission that governs the agency.

true. Only after all administrative appeals are exhausted can a party file an appeal with the federal appellate court.

Federal agencies must prepare guides that explain in "plain English" how small businesses can comply with federal regulations.

true. Small Business Regulatory Enforcement Fairness Act.

There are basic steps to formal administrative rulemaking.

true. The 3 basic steps to formal rulemaking are notice, comment period. Then, there is the final rule.

Most meetings of a federal agency must be open to public observation.

true. The Government in Sunshine Act or open meeting law requires every meeting of an agency to be open to public observation.

The priority among conflicting federal and state laws is based on the supremacy clause of the U.S. Constitution.

true. The Supremacy Clause

An administrative agency can compel a witness to appear at an agency hearing.

true. The agency would secure a subpoena. If the agency wants documents, the agency must secure a subpoena duces tecum (bring it with you).

The president of the United States has the power to appoint federal officers of federal administrative agencies.

true. The president can also veto enabling legislation passed by congress.