Chapter 17 - Business Law

What is the term for a court's determination that an administrative agency decision is the result of plain error or mistake? clearly erroneous contrary to law abuse of discretion mistake of fact

- Abuse of discretion

Which of the following are sources of administrative law? Choose 3 answers. agency opinions executive orders agency guidance agency regulations

- Agency opinions - Executive orders - Agency regulations

What are the 4 powers that Government agencies have?

- Rule making/Regulation - Investigation - Adjudicate - Enforcement

What is the term given to an administrative decision that is unreasonable or implausible in light of the facts and evidence? substantial error clearly erroneous abuse of discretion arbitrary and capricious

- arbitrary and capricious

1. Bradley just became the manager for WKNO, a local independent television station. This is the first time Bradley has been in a management position, so he wants to learn all he can about the laws that govern the broadcasting industry. Bradley learns that the governmental entity that will have the most influence over the day-to-day operations of his television station is the: a. Federal Communications Commission. b. state legislature. c. Congress. state supreme court

a. Federal Communications Commission.

1. Roger has worked for an agency, the Federal Reserve, for ten years. Recently, Roger has heard rumors that multiple employees have contracted COVID-19, a highly contagious and potentially dangerous disease, although they have recovered completely. Nevertheless, Roger is still concerned about being around these people, so Roger asks his employer, the Federal Reserve, for a list of these employees. The Federal Reserve refuses, so Roger files a Freedom of Information Act (FOIA) request for the information. Under the FOIA, will the Federal Reserve provide Roger this list? a. No, this information is confidential and personal. b. Yes, Roger has a good reason for requesting this information. c. Yes, providing this information does not violate normal agency policies. d. No, because as a current employee of an agency, the Federal Reserve, Roger cannot file a FOIA request with the Federal Reserve.

a. No, this information is confidential and personal.

1. Bauxite Chemical Company has conducted manufacturing operations for ten years. The Environmental Protection Agency (EPA) has received reports from citizens that Bauxite is illegally dumping toxic waste into a nearby river in violation of the Clean Water Act. The EPA decides to investigate the claim. To decide whether Bauxite has violated the Clean Water Act, the EPA can: a. review required reports submitted by Bauxite, use direct observation, and use its subpoena power to require Bauxite to produce documents. b. use direct observation and use its subpoena power to require Bauxite to produce documents. c. use direct observation and review required reports already submitted by Bauxite. use its subpoena power to require Bauxite to produce documents

a. review required reports submitted by Bauxite, use direct observation, and use its subpoena power to require Bauxite to produce documents.

she requests a transfer to another position that does not require as much lifting. Boeing refuses to transfer Phyllis and fires her instead. Phyllis files a complaint with the EEOC for a violation of the Pregnancy Discrimination Act, and that agency, the EEOC, decides the case in Boeing's favor. After exhausting all administrative remedies, Phyllis files a lawsuit in federal court, which will: a. show deference to the agency's decision on both questions of law and fact, upholding the decision unless it is unreasonable. b. show deference to the decision of the agency on questions of law only, upholding it unless the decision is unreasonable. c. show deference to the decision of the agency on questions of fact only, upholding it unless the decision is unreasonable. d. show no deference to the decision of the agency on either questions of law or fact; the court may substitute its judgment for that of the agency.

a. show deference to the agency's decision on both questions of law and fact, upholding the decision unless it is unreasonable.

In which of the following ways may a court review an administrative agency decision? Choose 3 answers. A court may rewrite an agency's regulation if it is unconstitutional or does not comply with the law. A court may review the constitutionality of an agency regulation. A court may determine whether an agency decision was supported by the facts and evidence. A court may determine whether an agency correctly interpreted the law.

- A court may review the constitutionality of an agency regulation. - A court may determine whether an agency decision was supported by the facts and evidence. - A court may determine whether an agency correctly interpreted the law.

What is the exhaustion doctrine? A person may seek judicial review of an agency decision only after they have followed all agency procedures to obtain a remedy for their complaint and have obtained a final order from the agency. The exhaustion doctrine permits a person to seek judicial review of any unreasonable agency determination, whether or not it is final. A court will apply the exhaustion doctrine to determine if an administrative agency did all that it could to amicably resolve a dispute. The exhaustion doctrine is the standard by which a court will review a decision of an administrative agency.

- A person may seek judicial review of an agency decision only after they have followed all agency procedures to obtain a remedy for their complaint and have obtained a final order from the agency.

What are two ways in which Congress may limit or control an administrative agency's power once it establishes the agency? Choose 2 answers. Administrative agency rules are reviewed by Congress. Congress may amend legislation or enact new legislation to control, limit, or modify an agency's powers. Congress may interpret an agency's rules or regulations. Congress may remove the head of an agency (except an independent agency).

- Administrative agency rules are reviewed by Congress. - Congress may amend legislation or enact new legislation to control, limit, or modify an agency's powers.

Which of the following is a correct statement about the federal Freedom of Information Act (FOIA)? Choose 2 answers. An agency does not have to respond to a request that is unduly burdensome. The person requesting records from an agency must state the reason for the request. All agency records are subject to disclosure unless specifically exempted by the FOIA. The person requesting records may sue the agency in federal district court for a failure to disclose records.

- All agency records are subject to disclosure unless specifically exempted by the FOIA. - The person requesting records may sue the agency in federal district court for a failure to disclose records.

Which of the following is an accurate statement of the role of an administrative law judge (ALJ)? An ALJ conducts an investigation based on a formal complaint. An ALJ is an independent judge. An ALJ issues an order that is final and not subject to an appeal. An ALJ conducts a hearing and renders a decision that is binding on the parties.

- An ALJ conducts a hearing and renders a decision that is binding on the parties.

Unlike a trial court judge, an administrative law judge (ALJ) is not considered an independent judge because of which of the following? An ALJ may have ex parte discussions with a party to a case. An ALJ is not independent because his or her decisions are reviewable by a court. An ALJ is not required to be as unbiased as a court judge. An ALJ is an employee of the administrative agency.

- An ALJ is an employee of the administrative agency

Which of the following statements correctly reflects the role of a federal administrative law judge (ALJ)? An ALJ's final order may only be overturned by a court if it is unreasonable. An ALJ's final order may not be reviewed by a court. An ALJ's final order may be re-tried in a federal district court. An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court.

- An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court.

In which type of administrative agency does the president not have the authority to remove the head of the agency? a non-regulatory agency a commission an independent agency a board

- An independent agency

Which of the following controls may a president or governor exercise over an administrative agency? Choose 2 answers. appoint or remove agency officers veto enabling legislation regarding the agency expand the authority of an agency establish rules and regulations of the agency by executive order

- Appoint or remove agency officers - Veto enabling legislation regarding the agency

What is the term given to a court's reliance on an administrative law judge's interpretation of an agency's enabling legislation or the agency's regulation? deference preference accession discretion

- Deference

The typical organizational structure of an administrative agency starts with the agency head who oversees units designed to carry out which of the following functions? Choose 3 answers. accountability enforcement rule-making adjudication

- Enforcement - Rule-making - Adjudication

What is the doctrine called that requires a party to obtain a final administrative agency order before suing in court? Chevron doctrine exhaustion doctrine doctrine of res judicata ripeness doctrine

- Exhaustion Doctrine

The Government in the Sunshine Act is an example of which type of control over an administrative agency? indirect control executive control judicial control direct control

- Indirect control

The judicial branch may limit an administrative agency's actions by which of the following? Choose 2 answers. judicial review of the agency's regulations a court's removal of an agency officer a court's modification of the agency's authority judicial review of the agency's orders on appeal

- Judicial review of the agency's regulations - Judicial review of the agency's orders on appeal

Which of the following statements explains the formation and purpose of a federal administrative agency? Choose 2 answers. Most federal administrative agencies are subject to the authority of the president, but some are independent. A federal administrative agency is given its authority in the U.S. Constitution. An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law. As part of the executive branch, a federal administrative agency is formed by the president to establish regulations that will implement and enforce the law.

- Most federal administrative agencies are subject to the authority of the president, but some are independent. - An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law.

The Administrative Procedure Act (APA) governs the rule-making process of administrative agencies in which of the following ways? Choose 2 answers. The APA requires a public meeting on all proposed rules. The APA requires public notice of proposed substantive rules. The APA requires an administrative agency to consider public comment on its proposed rules. The APA requires public notice of interpretive rules.

- The APA requires public notice of proposed substantive rules. - The APA requires an administrative agency to consider public comment on its proposed rules.

The Administrative Procedure Act (APA) is the federal law that does which of the following? The APA requires that agencies conduct public hearings. The APA requires an economic impact statement for rules or regulations that impact small businesses. The APA requires Congress to review agency rules and regulations before they become final. The APA sets out the rule-making process for administrative agencies.

- The APA sets out the rule-making process for administrative agencies.

What is the name of the doctrine that requires a person to first complete the administrative process and obtain a final agency order before seeking a court review of the agency's action? the promulgation doctrine the exhaustion doctrine the administrative remedy doctrine the administrative procedure doctrine

- The exhaustion doctrine

May an administrative agency conduct a warrantless search as part of an investigation? Choose 2 answers. No, an administrative agency may never conduct a warrantless search. Yes, if there is an immediate danger to public health, welfare, or safety. Yes, because they are exempt from Fourth Amendment requirements. Yes, if the investigation concerns a highly regulated industry.

- Yes, if there is an immediate danger to public health, welfare, or safety. - Yes, if the investigation concerns a highly regulated industry.

What is the type of rule called that the Administrative Procedure Act (APA) allows to be implemented before it is final? a temporary rule a provisional rule an emergency rule a proposed rule

- an emergency rule

Congress may exercise direct control over an agency by which of the following methods? Choose 3 answers. prohibiting the disclosure of its records enacting budgetary controls repealing the enabling statute amending the law

- enacting budgetary controls - repealing the enabling statute - amending the law

Administrative agencies have the power to enforce the law through which of the following actions? Choose 3 answers. imposing penalties, fines, or damages issuing a subpoena for testimony or other evidence prosecuting criminal charges seizing property

- imposing penalties, fines, or damages - issuing a subpoena for testimony or other evidence - seizing property

When an agency needs to enforce the law or its regulations, it may exercise which of the following powers? Choose 3 answers. issue a subpoena conduct a hearing to obtain a final order issue restraining orders investigate complaints and possible violations of its regulations or the law

- issue a subpoena - conduct a hearing to obtain a final order - investigate complaints and possible violations of its regulations or the law

Administrative law is comprised of which of the following sources? Choose 3 answers. legislation court decisions regulations procedural rules

- legislation - court decisions - regulations

The primary purpose of the Freedom of Information Act (FOIA) is to accomplish which of the following? to protect a citizen's private information collected by an administrative agency to make administrative agency meetings open to the public to govern public access to administrative agency records to govern how an administrative agency informs its employees of labor and employment laws

- to govern public access to administrative agency records

Congress creates an administrative agency to accomplish which of the following? Choose 2 answers. to review the constitutionality of a law to delegate the writing of legislation to implement a law through the development of rules to monitor and enforce compliance with the law

- to implement a law through the development of rules - to monitor and enforce compliance with the law

The legislation that requires an administrative agency to respond to requests from citizens for agency records is called the: Administrative Procedure Act (APA). Government in the Sunshine Act. Freedom of Information Act (FOIA). Information Transparency Act (ITA).

Freedom of Information Act (FOIA)

1. Soma operates a local liquor store. Recently, agents of the Federal Alcohol Tobacco and Firearms Agency (ATF) came to Soma's shop, unannounced, and asked to search the premises. Soma, understandably upset, demanded to see a warrant. The agents did not produce a warrant for Soma but proceeded to search the premises anyway and found incriminating evidence that Soma had been selling liquor without paying the liquor taxes. If Soma files an action to have the search suppressed: a. Soma will lose because search warrants are not required for searches of highly regulated industries. b. Soma will win because, under the Fourth Amendment, a search cannot be conducted without a warrant. c. Soma will lose because the ATF found incriminating evidence, which voids the need for a search warrant. d. Soma will win because officers must always produce a warrant when requested by the citizen being searched.

a. Soma will lose because search warrants are not required for searches of highly regulated industries.

1. Running Bear is concerned about the dwindling population of grizzly bears in Yellowstone National Park, so he asks the U.S. Department of the Interior to put grizzly bears back on the endangered species list. When the Department of the Interior refuses, Running Bear sues in federal court, claiming that the federal government failed to consider the impact delisting the grizzly would have on other bear populations in the Greater Yellowstone ecosystem. To be successful, Running Bear must prove that the decision of the government was: a. arbitrary and capricious. b. ancillary and capricious. c. arbitrary and contentious. d. against the preponderance of the evidence.

a. arbitrary and capricious.

. The Environmental Protection Agency (EPA) has received reports from citizens that Bauxite is illegally dumping toxic waste into a nearby river in violation of the Clean Water Act. The EPA decides to investigate the claim and issues a subpoena that requires Bauxite to produce all business records in its possession for the last ten years. In response to the subpoena, Bauxite should: a. claim that the subpoena is too vague or that it imposes an unreasonable burden on the company and, therefore, it will not comply with the subpoena. b. make copies of all its business records for the last ten years and submit them to the EPA. c. make copies of its business records for the last three years and submit them to the EPA because subpoenas for records can only go back three years. d. refuse to make copies of the records but allow the EPA to inspect the records onsite.

a. claim that the subpoena is too vague or that it imposes an unreasonable burden on the company and, therefore, it will not comply with the subpoena.

Anisa files a complaint with the Equal Employment Opportunity Commission (EEOC). A week later, Anisa receives confirmation that her complaint has been filed and also a document that sets out the EEOC procedures that must be followed. When Anisa realizes all the steps that she must go through with the EEOC, she decides to skip the EEOC process and file her complaint directly with the federal court because she thinks that is where she will ultimately end up. When the court receives Anisa's complaint: a. it will dismiss the complaint for failure to exhaust all administrative remedies. b. it will notify the EEOC to dismiss the complaint that Anisa filed there. c. it will require Anisa to amend the complaint by attaching the EEOC complaint to it and refiling. it will docket the case and set dates for discovery and trial.

a. it will dismiss the complaint for failure to exhaust all administrative remedies.

1. Rhea, a 45-year-old supervisor in a women's retail clothing store, recently learned that a younger co-worker was promoted to a position she had applied for. Rhea has more experience and more time with the company and has always gotten excellent scores in her annual reviews. Rhea files an action with the Equal Employment Opportunity Commission (EEOC) for age discrimination. The Administrative Law Judge (ALJ) issues an order in favor of Rhea. This decision of the ALJ is: a. the final order in the case unless the store appeals. b. the final order in the case unless Rhea appeals. c. only a temporary order; there will always be a different final order. d. only a temporary order unless either party appeals.

a. the final order in the case unless the store appeals.

Harold regularly sprays his customers' lawns with a pesticide that contains glyphosate. The Environmental Protection Agency (EPA) issues a citation to Harold for commercial use of the pesticide. The EPA says glyphosate can only be used in residential applications. Harold knows that this has not been the law in the past, so he searches the EPA website for information about glyphosate. Harold finds nothing that indicates glyphosate cannot be used in commercial applications, so Harold demands a hearing to dispute the citation he has been issued. Harold will probably: a. win because the EPA did not give notice of the rule change regarding glyphosate. b. win because Harold's use of glyphosate would be grandfathered in. c. lose because the EPA is not required to give notice before it changes environmental rules. d. lose because as a commercial lawn care provider, Harold must stay abreast of current research on pesticid

a. win because the EPA did not give notice of the rule change regarding glyphosate.