Business Law - Chapter 4

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Stages of Informal Rule-making

1) Proposed rule published in Federal Register, 2) interested parties can submit comments, 3) Agency publishes final rule with effective date in Federal Register

Administrative Agency

Any governmental body of the city, county, state or federal government

Hybrid Agency

Characteristics of an executive and independent agency (Environmental Protection Agency)

Administrative Law

Consists of substantive and procedural rules created by administrative agencies

Exempted Rule-Making

Exempt from certain processes, agency decides whether public participation is allowed (Military or foreign affairs)

Privacy Act of 1974

Federal agency may not disclose information about an individual to other agencies or organizations without that individual's written consent

Policy Statements

General statements about directions of agency regarding rule-making or enforcement activities, no binding impact, do not directly affect legal rights

Executive Agency

Generally within executive branch of government, under a "cabinet-level" department (FDA)

Independent Agency

Governed by board of commissioners appointed by president, with "advice and consent" of U.S. Senate

Judicial Limitations on Agency Powers

Interested parties may challenge administrative rules in court, court may review agency's findings of facts

Regulated Negotiation (Reg-neg)

Mediated agreement on agency rule-making

Administrative Law Judge

Presides over administrative hearing, may attempt to encourage parties to settle, but has power to enter binding decision

Informal Rule-Making

Proposed rule published in Fed. Register, with opportunity for public to comment

Hybrid Rule-Making

Proposed rule published in Fed. Register, with opportunity for public to make comments and then INFORMAL public hearing is held (characteristics of both Informal and formal)

Formal Rule-Making

Publication of proposed rule in Federal Register, then formal public hearing is held

Administrative Agency

Referred to as the unofficial 4th branch of government, first one was the Interstate Commerce Commission (ICC)

Government in Sunshine Act

Requires that agency meeting be open to public (be out in the open)

Freedom of Information Act

Requires that federal agencies publish in Federal Register places where public an access agency information

Interpretive Rules

Rules that do not create any new rights/duties, give a detailed statement of agency's interpretation of existing law

Administrative Procedures Act (APA)

Set guidelines on agency rule-making

Executive, Independent, and Hybrid Agency

Types of Administrative Agencies

Statutory Limitations on Agency Powers

U.S. Congress can: create or eliminate agencies, amend enabling legislation, override agency rules

Political Limitations on Agency Powers

U.S. Senate must approve agency heads, U.S. congress has power over agency budgets


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