Business Law Chapter 15 Questions
[15-01] Administrative law judges are A. organizationally separate from the rest of the agency. B. responsible for the minutes of agency meetings and are legal custodians of its records. C. exempt from the protection of immunity. D. excluded from hearing cases of alleged law violations. E. intermediaries between regulators and those being regulated.
A
[15-01] As the member of an agency, a secretary A. signs orders and official correspondence. B. is the presiding officer at agency meetings. C. makes the decision to file suit or pursue other remedies. D. supervises usual administrative functions. E. provides for interaction between regulators and those being regulated.
A
[15-01] In a(n) ______ type of regulatory authority, an agency can make decisions like a court. A. quasi-judicial B. quasi-executive C. in personam D. quasi-regulatory E. quasi in rem
A
[15-01] The ______ function of an administrative agency involves both fact-finding and applying law to the facts. A. adjudicating B. advising C. rule-making D. investigating E. policy making
A
[15-01] The ______ power of administrative agencies is primarily to investigate, prosecute, advise, and supervise. A. executive B. judicial C. legislative D. arbitrary E. preliminary
A
[15-01] The protection administrative law judges receive from liability for damages based on their decisions is called ______. A. immunity B. specificity C. amnesty D. novation E. adjudication
A
[15-01] Which of the following federal agencies conducts union certification elections and holds hearings on unfair labor practice complaints? A. the National Labor Relations Board (NLRB) B. the Equal Employment Opportunity Commission (EEOC) C. the Occupational Safety and Health Administration (OSHA) D. the Federal Reserve Board (FRB) E. the American Federation of Labor and Congress of Industrial Organizations
A
[15-01] Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices? A. the Federal Trade Commission (FTC) B. the Equal Employment Opportunity Commission (EEOC) C. the Consumer Product Safety Commission (CPSC) D. the National Labor Relations Board (NLRB) E. the Federal Reserve Board (FRB)
A
[15-01] Which of the following is true of administrative agencies? A. The actual regulatory activity is performed by administrative agencies. B. Administrative agencies that issue rules having impact of laws are called quasi-judicial agencies. C. State and local governments do not have administrative agencies. D. Administrative agencies with quasi-executive authority make decisions like a court. E. Administrative agencies license and regulate intrastate transportation.
A
[15-01] Which of the following statements is true of a secretary in an administrative agency? A. A secretary is responsible for the minutes of agency meetings and is legal custodian of its records. B. A secretary is designated as such at the time of nomination by the president. C. A secretary is the presiding officer at agency meetings. D. A secretary is not responsible for agency functions such as signing orders and official correspondence. E. A secretary is the chief operating official of an agency and supervises usual administrative functions such as accounting.
A
[15-01] Which of the following statements is true of the executive director in an administrative agency? A. The executive director is the chief operating official of an agency and supervises usual administrative functions. B. The executive director is responsible for the minutes of agency meetings. C. The executive director is the legal custodian of the records of any meetings. D. The executive director is responsible for publication of all actions in the Federal Register. E. The executive director is the chief law officer and legal adviser.
A
[15-01] Which of the following statements is true of the functionality of agencies providing services? A. Social Security programs necessitate that there be a federal agency to determine eligibility and pay benefits. B. The mere existence of most government programs hardly creates any new agency or expands the functions of an existing one. C. Welfare programs are run easily without being administered by the government. D. Government agencies often stand as a substitution for competition. E. Agencies that function to provide services are created out of sheer manpower rather than necessity.
A
[15-01] Which of the following statements is true of the legislature in influencing decisions in an administrative agency? A. It has the power to limit appropriation of funds to the agency. B. It cannot abolish an administrative activity. C. It is beyond its scope to advise and amend procedural requirements for the agency's adjudications. D. It has very little control over the administrative process of an agency. E. It takes decisions independently, without any consultation with the executive branch.
A
[15-02] Which of the following statements is true of the judicial review of administrative agency's adjudications? A. Administrative agencies develop their own rules of procedure unless mandated otherwise by an act of the legislature. B. Courts and legislative bodies are better than administrative agencies to decide on the rules of procedure and methods of inquiry based on their familiarity with the industry. C. In reviewing the procedures of administrative agencies, courts have absolute authority to substitute their judgment or their own procedures for those of the agency. D. Procedures set by the administrative agencies are far more formal than judicial procedures. E. Administrative agencies are completely restricted by the strict rules of evidence used by courts.
A
[15-01] Administrative agencies often provide needed continuity and consistency in the formulation, application, and enforcement of rules and regulations governing business. By doing so, these agencies are providing ______. A. specificity B. expertise C. protection D. regulation E. services
B
[15-01] Business often fails to regulate itself, and the lack of self-regulation is contrary to the public interest. To counterbalance, administrative agencies exist to A. refer the problem or area to experts for solution and management. B. protect the public, especially from the business community. C. replace competition with regulation. D. develop detailed rules and regulations to carry out the legislative policy. E. provide services that have arisen out of necessity.
B
[15-01] The Federal Reserve Board (FRB) found that Parson Inc., a newly established financial company, had violated banking laws. The company was involved in transactions that were prohibited by the United States government. Along with imposing a hefty fine, the FRB issued an order on Parson to stop the nature of such objectionable transactions and ordered the firm to refrain from indulging in such transactions in the future. This order is an example of a(n) ______. A. consent order B. cease and desist order C. preliminary order D. commission order E. assignment order
B
[15-01] The Securities and Exchange Commission (SEC) primarily functions as a(n) ______ body, which oversees the issue and sale of investment securities. A. rule-making B. supervising C. adjudicating D. investigating E. emergency
B
[15-01] The ______ is the chief law officer and legal adviser. A. secretary B. general counsel C. chairperson D. executive director E. chief judge
B
[15-01] The ______ power of administrative agencies is primarily to decide on controversies. A. executive B. judicial C. legislative D. arbitrary E. preliminary
B
[15-01] Which of the following is a unique agency device generally not available in the judicial system, as courts deal only with actual cases and controversies? A. limited cross examination B. advisory opinion C. formal ruling D. investigative power E. subpoena power
B
[15-01] Which of the following is an order that an agency imposes on a violator to stop an objectionable activity and refrain the violator from any further violations? A. consent order B. cease and desist order C. preliminary order D. commission order E. assignment order
B
[15-01] Which of the following statements is true of administrative law judges? A. They lack immunity for the damages arising from their decisions. B. They use prior decisions or precedent. C. They refrain from performing any fact-finding functions. D. They refrain from hearing cases of alleged law violations. E. They have the option of either following procedural rules of the agency or its policy directives.
B
[15-01] Which of the following statements is true of the executive branch of a government? A. It has no control over the administrative process of an agency. B. It normally appoints the top officials of an agency with the advice and consent of the legislative branch. C. It is denied veto power over the statues of the legislatures. D. It is excluded from making any budget recommendations to the legislative branch. E. It enacts and creates specific legislations adopted by administrative agencies.
B
[15-02] The doctrine of ______ is a court-created rule that limits when courts can review administrative decisions. A. estoppel B. exhaustion of remedies C. lapse D. primary jurisdiction E. precedent
B
[15-02] Which of the following statements is true of delegation of quasi-legislative authority to administrative agencies? A. The delegation of authority should be general and unlimited to ensure smooth running of the administrative processes. B. The delegation of authority to an agency must provide that the agency's power to act is limited to areas that are certain. C. The delegation of authority should contain broad language to avoid confusion in the performance of an action. D. The delegation of authority involves grant of substantial discretion to the judiciary. E. The delegation of authority allows courts to interfere with the discretion given to the agency and can substitute their judgment for that of the agency.
B
[15-02] Which of the following statements is true of primary jurisdiction? A. It applies when a claim must go in the first instance to an administrative agency. B. It ensures uniformity and consistency in dealing with matters entrusted to an administrative body. C. It is inapplicable in cases whenever enforcement of a claim requires the resolution of issues that have been placed within the special competence of an administrative body. D. It is a court-created rule that limits when courts can review administrative decisions. E. It is revoked in cases where a claim is originally filed in the courts.
B
[15-02] Which of the following statements is true of the review of rule making? A. The rule-making function in the administrative process is essentially executive in character. B. Before a court can find a proposal void, an administrative agency must propose rules within the confines of its grant of power from the legislature. C. A court will inquire into its wisdom or effectiveness even after deciding that an act of the legislature or the action of an agency is authorized. D. Political action at polls is excluded from correcting an unwise or an ineffectual law. E. The scope of the legislature makes it impossible for it to correct an unwise regulation made by an agency in cases where the legislature was responsible for granting the agency such power.
B
[15-03] The administrative process can give rise to too much discretionary power, often unstructured, and unchecked. This is a criticism of the administrative process relating to ______. A. personnel B. procedures C. substances D. management E. manpower
B
[15-01] The ______ function of an administrative agency may be accomplished by making reports to the president or to Congress. A. investigating B. adjudicating C. advisory D. rule-making E. prosecuting
C
[15-01] The ______ has significant impact on policy and is often as powerful as a commissioner or board member. A. secretary B. advisory council C. general counsel D. chairperson E. executive director
C
[15-01] When administrative agencies exercise their quasi-legislative power by issuing guidelines that have the force and effect of law, they are ______. A. adjudicating B. advising C. rule making D. investigating E. policy making
C
[15-01] Which of the following federal agencies regulates the availability and cost of money and credit? A. the Federal Communications Commission (FCC) B. the Federal Trade Commission (FTC) C. the Federal Reserve Board (FRB) D. the Equal Employment Opportunity Commission (EEOC) E. the Federal Energy Regulatory Commission (FERC)
C
[15-01] Which of the following is true of the Environmental Protection Agency (EPA)? A. It protects the public against unreasonable risks of injury associated with consumer products. B. It ensures all workers a safe and healthy work environment. C. It administers all laws relating to water pollution, air pollution, solid wastes, pesticides, and toxic substances. D. It administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs. E. It regulates civil aviation to provide safe and efficient use of airspace.
C
[15-01] Which of the following members of an agency requires Senate approval while being appointed? A. secretary B. advisory council C. general counsel D. chairperson E. executive director
C
[15-01] Which of the following statements is true of factors influencing agency decisions? A. It is ideal that a rule or a regulation be adopted without having to follow the due process of law. B. Agencies are predominantly politically responsible for their decisions. C. At public hearings, interested parties are allowed to present evidence in support of, or in opposition to, a proposed rule or regulation. D. An ineffective means of influencing a quasi-legislative decision of an administrative agency is to participate in the adoption process as such participation is time-consuming and expensive. E. The advantage of the administrative agencies is that it is free from any control from any branch of the government.
C
[15-01] Which of the following statements is true of organization of agencies? A. Administrative agencies or boards usually consist of 35 or 40 members to ensure transparency in their functioning. B. Appointees at the federal level are permitted to engage in any other business or employment during their terms. C. Appointees may be removed by the president for neglect of duty and inefficiency. D. A simple majority of the members forming the body should belong to a different political party. E. A secretary is vested with a power to remove an appointee for malfeasance in office.
C
[15-01] Which of the following type of regulatory authority issues rules that have the impact of laws? A. in personam B. quasi-executive C. quasi-legislative D. quasi-regulatory E. quasi in rem
C
[15-02] Any party seeking the judicial review of any administrative agency's decision must be able to prove: A. enabling legislation. B. immunity. C. standing to sue. D. novation. E. primary jurisdiction.
C
Which of the following is an issue of administrative agencies that relates to personnel? A. The volume of rules adopted by agencies is beyond the ability of the business community to keep up with and comply with. B. There are so many agencies making regulations directed at the business community that the regulations often overlap and are in conflict. C. The administrative process is overwhelmed with paperwork and with meetings. D. The administrative process finds it difficult to discharge unsatisfactory employees. E. There is often a lack of enforcement procedures to follow up on actions taken to ensure compliance.
D
[15-01] A(n) ______ is designated as such at the time of nomination by the president and is the presiding officer at agency meetings. A. secretary B. advisory council C. general counsel D. chairperson E. executive director
D
[15-01] Administrative agencies are needed to provide specificity to A. refer a problem or area to experts for solution and management. B. protect the public, especially from the business community. C. replace competition with regulation. D. develop detailed rules and regulations to carry out a legislative policy. E. provide services that have risen out of necessity.
D
[15-01] When a firm is given monopoly power, it loses its freedom of contract, and a governmental body is given the power to determine the provisions of its contracts. The government agency is providing ______. A. specificity B. expertise C. protection D. regulation E. services
D
[15-01] Which of the following functions allows an agency to gather and compile information concerning the organization and business practices of any corporation or industry engaged in commerce to determine whether there has been a violation of any law? A. adjudicating B. advising C. rule making D. investigating E. policy making
D
[15-02] Which of the following doctrines applies when a claim is originally filed in the courts? A. estoppel B. the doctrine of exhaustion of remedies C. the doctrine of lapse D. primary jurisdiction E. the doctrine of precedent
D
[15-02] Which of the following statements is true of reviewability of an administrative agency's decision? A. Reviewability of an administrative agency's decision is mandatory as all such decisions are reviewable. B. The action of the agency is irrelevant in determining the reviewability of an administrative agency's decision. C. The Federal Administrative Procedure Act excludes judicial review of decisions where the statutes preclude judicial review. D. The Federal Administrative Procedure Act permits reviewability except in cases where agency action is committed to agency discretion by law. E. Reviewability of an administrative agency's decision is necessary as preclusion of judicial review by inference is very common.
D
[15-03] Which of the following is a criticism of the administrative process relating specifically to procedures? A. The administrative process is devoid of paperwork and meetings. B. There is too much reinforcement to follow up on actions to ensure compliance. C. The Peter Principle creates a huge problem in determining the flow of procedures across all levels in the agencies. D. The rules and regulations of the procedures are written in complex legal language, which laypeople cannot understand. E. The decision-making process of organizations is speedy thus creating suspicion among the efficacy of those decisions.
D
[15-03] Which of the following issues of administrative agencies relates to the substantive outcome of agencies' rule-making and adjudicating authority? A. It is very difficult to discharge unsatisfactory employees. B. The reward system usually does not make a significant distinction between excellent, mediocre, and poor performances. C. The administrative process is overwhelmed with paperwork and with meetings. D. Enforcement of some laws varies over time. E. There is often a lack of enforcement procedures to follow up on actions taken to ensure compliance.
D
[15-01] The mere existence of most government programs automatically creates a new agency or expands the functions of an existing one. These agencies are providing ______. A. specificity B. expertise C. protection D. regulation E. services
E
[15-01] Which of the following is true about an advisory council? A. It is more important than other agency members because of visibility and the power to appoint staff. B. It coordinates the activities of an agency with others involved in the regulatory process. C. It makes the decision to file suit or pursue other remedies. D. It supervises usual administrative functions such as accounting, budgeting, and personnel. E. It provides for interaction between regulators and those being regulated.
E
[15-01] Which of the following statements is true of a consent order? A. It is extremely expensive in comparison to other types of orders. B. It is commonly known as a commission order. C. It excludes organizations and nonprofit organizations in its scope. D. It orders that a violator stop the objectionable activity and refrain from any further similar violations. E. It requires that the accused individual admit to the jurisdiction of an agency and waive all rights to seek a judicial review.
E
[15-02] Which of the following statements is true of the doctrine of exhaustion of remedies? A. It applies when a claim is originally filed in the courts. B. It comes into play whenever enforcement of a claim requires the resolution of issues that were placed within the special competence of an administrative body. C. It is an absolute principle, and courts usually deny parties the right to litigate prior to exhausting administrating remedies. D. It increases the premature interruption of the administrative process. E. It allows an agency to discover and correct its own errors, and thus it helps to dispense with any reason for judicial review.
E
