BUL 4321 Exam

According to the United States Supreme Court, courts should not defer to an administrative agency's interpretation of the law

False

An agency's interpretation of the law will not be upheld by a court unless it is supported by specific evidence - a reasonable explanation is not enough.

False

Legislatures create statutory law and administrative law.

False

For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rule making.

True

Proving an antitrust violation requires showing a misuse of market power.

True

Dig Inc. is the major wholesale distributor of heavy equipment in six states. Dig's closest competitor is Excavator Company. The two firms agree that Dig will operate in four of the states and Excavator in the other two. This is

a market division

Bio Med Corporation makes and sells Curative. the most prescribed name-brand pain relief medication. Drugs Inc. has the potential to make a generic version of the same drug. Bio Med agrees to pay Drugs not to make or sell the generic. This agreement is most likely

a per se violation of the Sherman Act

Tim is a witness in a controversy involving the US Bureau of Tobacco and Firearms. Tim can be compelled to appear before an administrative law judge if he is served with

a subpoena

Best View Corporation offers to sell LED screens to Computer & Video Inc., only if the buyer also agrees to by the sellers servicing of its products. This is

a tying arrangement

The US Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except

adjust the rule to the satisfaction of the regulated businesses

Organic Frozen Foods Corporation is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of

administrative law

Pump Makers Inc makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation - a maker of fire trucks - on Quality agreement to buy additional pumps only from Pump Makers. This is

an exclusive dealing contract

The rules of administrative agencies can be

as binding as laws passed by Congress.

Under the contract, Oil Shale Corporation forbids Petro. Inc, a wholesale buyer of Oil Shales products, to purchase products from the seller's competitors. This is prohibited

if its effects is to substantially lessen competition

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is

publish a notice of the proposed rulemaking

The Food and Drug Administration wants Phrama Inc. to produce certain records for review. Pharma need not reveal

trade secrets

Expressly exempt from antitrust laws because it is not interstate commerce, according to the United Supreme Court, is

professional baseball

Because commerce operates more efficiently when competition cooperate, Section 1 of the Sherman Act permits rivals to consolidate market power.

False

Interested parties are not given the opportunity to express their views on a proposed rule because their efforts might influence agency policy.

False

Preventing agencies from abusing their powers without hindering the agencies as they carry out their duties is not a governmental concern

False

A market in which there is a single seller or a very limited number of sellers is a monopoly.

True

As the economy has grown more complex, the size of the government has also increased. and so has the number of administrative agencies

True

Congress can exercise authority over the power of an administrative agency by revising its funding, changing its responsibilities, or abolishing it altogether.

True

Id the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.

True

Delta Water Company is subject to a decision by the enviromental Protection Agency. Delta appeals the decision, arguing that is arbitrary and capricious. This could mean that the decision

changed the agency's prior policy without justification

To be assured that a court will defer to an administrative agency's interpretation of the law, the agency must

meet the formal legal standards for notice-and-comment rulemaking

Independent Regulatory Agencies such as the Federal Communications Commission are

outside the federal executive departments

The procedures used by administrative agencies in fulfilling their basic functions is known as

the administrative process

When a state administrative regulation conflicts with a federal administrative regulation

the federal regulation takes precedence

The executive branch of the government can exercise control over an administrative agency through

the president's veto power.