Chapter 20: Administrative Law

Select the three powers that agencies have.

- Enforcement - Adjudication - Rule making

The Freedom of Information Act ___ the government to disclose certain records to any person on request, even without a reason.

Requires

The Small Business Regulatory Enforcement Fairness Act gives Congress ___ days to review new federal regulations to be sure that they do not unduly burden small businesses.

60

Delegation Doctrine:

A constitutional rule that allows Congress to give some of its authority to agencies

Congress may pass laws, but it needs administrative agencies to write the rules and carry out those laws. Consequently, administrative agencies frequently engage in decision-making. In the process of making rules and declaring their decisions, administrative agencies benefit some people and businesses and hurt others. In the case of designating the boundaries for a particular scenic river, which stakeholders could conceivably be harmed? A. Members of the public—who are no longer allowed to use a designated area for their preferred activity, such as mountain biking or motorcycle riding—could conceivably be harmed. B. Because government bureaucrats only advance their individual well-being, most stakeholders are worse off after the administrative agencies make their decisions. C. No stakeholders could be harmed because government administrators always take into account the best possible boundary designations that benefit everyone.

A. Members of the public—who are no longer allowed to use a designated area for their preferred activity, such as mountain biking or motorcycle riding—could conceivably be harmed.

Suppose that the National Park Service, in its attempt to establish boundaries of the Niobrara Scenic River Area, identified the parcel of land with the most ORVs and then drew a circle around it. Then, to be fair, it adjusted the boundary so that any adjoining landowner lost the ability to use the same amount of land. Could a recreational-outfitter business owner who lost land as part of the "fairness adjustment" successfully sue the National Park Service because its actions were arbitrary and capricious? A. Probably, because there is no rational connection between the goal of the government in protecting the ORVs and the loss of the land, thereby rendering the boundary decision arbitrary and capricious. B. No, because, by definition, fairness is not arbitrary and capricious. C. Probably, because most lawsuits against actions taken by the National Park Service have been successful.

A. Probably, because there is no rational connection between the goal of the government in protecting the ORVs and the loss of the land, thereby rendering the boundary decision arbitrary and capricious.

Which law requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal? A. Regulatory Flexibility Act B. Freedom of Information Act C. Small Business Regulatory Enforcement Fairness Act D. Government in the Sunshine Act

A. Regulatory Flexibility Act

AT&T wants to obtain additional rights to operate within the 700 MHz spectrum in the United States. The Federal Communications Commission (FCC) has rules and regulations that govern wireless spectrum auction. The FCC is: A. an administrative agency. B. an executive agency. C. a legislative agency. D. a judicial agency.

A. an administrative agency.

UsAgainstThem, a nonprofit environmental group, is contesting the EPA's interpretation of a rule that has allowed a refinery to offset an increase in emissions relating to one part of the refinery by reducing emissions in another part of the refinery. In challenging the EPA's interpretation, a court will likely A. defer to the agency's interpretation. B. dismiss the suit for lack of standing. C. refer the matter to an agency subcommittee. D. seek advice from Congress.

A. defer to the agency's interpretation.

The Equal Employment Opportunity Commission issues a statement describing how it will apply a section of the Americans with Disability Act. This statement is an example of a(n): A. interpretive rule. B. legislative rule. C. agency rule. D. illegal rule.

A. interpretive rule.

When an agency formally creates a new rule, the first step is to: A. publish a notice in the Federal Register B. solicit public comment C. issue a subpoena for information D. publish a notice in at least 200 local newspapers

A. publish a notice in the Federal Register

The Food and Drug Administration is an example of an executive agency. If Fred Smith is an officer in the FDA and he fails to perform his duties properly, the power to remove him lies with: A. the president of the United States. B. the Congressional representative from his home district. C. the speaker of the U.S. House of Representatives. D. the vice president of the United States.

A. the president of the United States.

The ___ is the law that specifies the procedural requirements that all federal agencies must follow in their rulemaking, adjudication, and other functions.

Administrative Procedures Act

Executive Agencies:

Agencies that exist within the cabinet departments and report to the president

Independent Regulatory Agencies:

Agencies that work under the direction of Congress and whose officers serve for fixed terms

Legislative Rules:

Agency rules that affect substantive legal rights and carry the same weight as congressionally enacted statutes

Interpretive Rules:

Agency rules that declare policies or explain agency positions but do not establish any legal rights or obligations

An administrative rule is a statement of general or particular ___ and ___ effect designed to implement, ___, or prescribe law and policy.

Applicability; Future; Interpret

Joseph is appointed to serve as an officer for a federal agency. He is appointed by the president of the United States and confirmed by the U.S. Senate. He is to serve for a six-year, fixed term and cannot be removed without cause (even if there is a change in the president). Joseph is most likely serving in: A. a Congressional committee. B. an independent agency. C. an executive agency. D. a cabinet post.

B. an independent agency.

Select two categories of records that are exempt from public disclosure under the Freedom of Information Act. A. bills that were rejected in Congressional committees B. documents with confidential information C. documents written by past presidents D. national security documents E. environmental impact statements

B. documents with confidential information D. national security documents

The main difference between independent regulatory agencies and executive agencies is that: A. executive agencies report directly to Congress, but independent regulatory agencies report to the president. B. executive agencies are subject to the authority of the president to a greater degree than independent regulatory agencies C. independent regulatory agencies are subject only to the authority of Congress

B. executive agencies are subject to the authority of the president to a greater degree than independent regulatory agencies

Theo is injured at work and files a workers' compensation claim, which is administered by the workers' compensation agency in his state. His employer disputes the extent of Theo's injuries. The case is heard by an administrative law judge (ALJ), who decides the case in the employer's favor. Theo's attorney tells him that his case cannot be appealed to a court because: A. there is not an actual controversy that qualifies for judicial proceedings. B. he has not first appealed the case to the workers' compensation board that heads the state agency. C. the decision of the ALJ is final in all administrative challenges. D. he does not have standing to appeal an administrative decision; only the employer could do that.

B. he has not first appealed the case to the workers' compensation board that heads the state agency.

The Environmental Protection Agency conducts meetings to discuss the possibility of creating additional regulations within the next five years. Under the Government in the Sunshine Act, the meetings: A. may be closed to the public, but the minutes of the meetings must be posted on the agency's Web site. B. may be closed to the public. C. must be advertised so that the public is aware that the meetings are taking place, but may be conducted privately. D. must be conducted in the open.

B. may be closed to the public.

According to the U.S. Supreme Court, a court must give Chevron deference to an agency interpretation if it has gone through the: A. reasonable person standard B. notice-and-comment rulemaking process C. informal rulemaking process

B. notice-and-comment rulemaking process

Carla works for the EPA. Her department determines that a new rule is necessary to help protect seabirds along the California coast. Carla is in charge of the notice of the proposed rulemaking. This means she must draft a notice of the proposed rulemaking proceedings to be published in: A. the EPA newsletter. B. the Federal Register. C. The Wall Street Journal. D. the local newspaper.

B. the Federal Register.

William wants to obtain information from the Securities and Exchange Commission regarding the number of active cases related to insider trading. To request this information, he would need to fill which of the following with the SEC: A. a Sunshine Act request. B. an SEC disclosure request. C. a Freedom of Information Act request. D. a Regulatory Flexibility Act request.

C. a Freedom of Information Act request.

One important difference between formal litigation and an administrative hearing before an administrative law judge (ALJ) is that: A. an administrative proceeding is usually more formal than litigation. B. the ALJ typically is not an agency employee. C. an ALJ can admit hearsay in the hearing. D. less information is admitted during an administrative hearing.

C. an ALJ can admit hearsay in the hearing.

Federal administrative agencies are created: A. by a judicial order B. by legislative orders issued by the president C. by enabling legislation D. Without any formal action

C. by enabling legislation

Select three situations when an agency can perform a warrantless search. A. Internet businesses B. personal services C. certain types of hazardous operations D. exporting businesses E. emergency situations F. highly regulated industries

C. certain types of hazardous operations E. emergency situations F. highly regulated industries

Congress passed the Securities Exchange Act of 1934, which created the Securities Exchange Commission. This legislation, which created an independent regulatory agency, is known as: A. a Congressional act. B. common law. C. enabling legislation. D. administrative law.

C. enabling legislation.

The Food and Drug Administration (FDA) is investigating a report that Cherise Cosmetics Co. is in violation of purity and testing regulations. The FDA wants Yasmin, the lead chemist for the company, to testify at an administrative hearing. Yasmin refuses, so the FDA: A. appeals her decision to a federal court. B. conducts an on-site investigation to discover the information. C. issues an ordinary subpoena. D. issues a subpoena duces tecum.

C. issues an ordinary subpoena.

Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of: A. a Restatement of the Law. B. statutory law. C. constitutional law. D. administrative law.

D. administrative law.

BP violated the Clean Air Act by discharging pollutants from one of its refineries and was unable to reach a settlement with the EPA regarding a violation of the law. The EPA plans to go forward with a trial on this matter, which will be heard by: A. an appellate court judge. B. the United States Supreme Court. C. a county court judge. D. an administrative law judge.

D. an administrative law judge.

The Equal Employment Opportunity Commission issues a statement describing how it will apply a section of the Americans with Disability Act. After exhausting the administrative remedies, Jill files a lawsuit in federal court alleging that the EEOC incorrectly interpreted the statute. The court likely will: A. ignore the agency's interpretation and send the question to Congress to clarify the meaning of the statute. B. give deference to the EEOC's interpretation regardless of its reasonableness, because agencies have the power to interpret statutes under their authority. C. interpret the statute without reference to the EEOC interpretation under its powers of judicial review. D. give deference to the EEOC's interpretation so long as it is reasonable.

D. give deference to the EEOC's interpretation so long as it is reasonable.

The Chevron standard requires the court to ask two questions: first, did Congress ___ address the issue in dispute? If so, the statutory language ___. If the statute is ___ or ambiguous, is the agency's interpretation of it ___? If so, the court should give deference to the agency's interpretation.

Directly; Prevails; Silent; Reasonable

Administrative agencies sometimes are referred to as the ___ branch of government.

Fourth

At the conclusion of a hearing, the ALJ issues a(n) ___ order. If no one objects, this becomes the ___ order.

Initial; Final

If an agency failed to follow proper rulemaking procedures when it issued the final rule, the rule ___ binding.

May not be

In addition to making decisions that are not arbitrary and capricious, agencies must give fair ___ to those affected by its regulations.

Notice

Many rules must be adopted using the notice-and-comment rulemaking procedure, which includes giving ___ the proposed rulemaking, allowing for a period of time for ___ from the public, and the issuance of the ___ rule.

Notice of; Comment; Final

During the comment period of the rulemaking process, the ___ is allowed to express opinions or views about a proposed rule. These comments may be in writing or ___ if a hearing is held.

Public; Oral

To determine whether an agency is abusing its discretion in pursuing information, a court may consider the ___ of the investigation, the ___ of the information being sought, the ___ of the demand for documents, and the ___ of the demand on the party.

Purpose; Relevance; Specificity; Burden

When assessing whether an agency action was arbitrary or capricious, courts generally look at several factors, including whether the agency failed to provide a ___ explanation for its decision; changed its prior policy without ___; considered legally ___ factors; failed to consider a ___ fact; or made a decision ___ to the evidence.

Rational; Justification; Inappropriate; Relevant; Contrary

The Government in the Sunshine Act ___ all agency meetings to be ___ to the public unless they meet certain criteria. If a person is going to be ___, if ___ agency action would be frustrated, or if the meeting involves ___ litigation or rulemaking, then the meeting may be ___.

Requires; Open; Accused of a crime; Future; Future; Closed

According to the APA, courts should ___ agency actions that are found to be ___, ___, or an abuse of ___.

Set aside; Arbitrary; Capricious; Discretion

Bureaucracy:

The large, hierarchical, organizational structure that allows for specialization and is supposed to increase efficiency

The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.

True

Under the Chevron standard, courts should defer to an agency's interpretation of law and of fact.

True

When an agency publishes notice of proposed rulemaking, the notice must include the subject of the proposed rule, the date and time of the proceedings, and the authority for passing the rule.

True

Did the U.S. Court of Appeals for the Eighth Circuit agree with the federal district court in this case?

Yes