Business Law - Chapter 4

investigation

Agencies have broad investigatory powers and may use subpoenas and, in some cases, warrantless searches to obtain information.

What must a party do before appealing an agency action in the court system? Choose 2 answer choices.

Must follow the agency appeal process, Must show direct harm.

Agency Limitations

The four most important limitations on the power of federal agencies are statutory control in the enabling legislation and the APA; political control by Congress and the president; judicial review; and the informational control created by the FOIA and the Privacy Act.

The power to enact laws is vested in the ... branch.

legislative

More law is created by ____ than by the _____.

statute, courts.

exhaustion doctrine

the principle that a complaining party normally must have exhausted all available administrative remedies before seeking judicial review

Agency rules are similar to statutes because of which one of the following?

They are legal requirements and binding as if Congress has passed them.

Freedom of Information Act (FOIA)

a federal statute that requires public agencies to provide certain types of information requested by citizens

Supoena duces tecum

A court summons ordering the recipient to appear before the court and produce tangible evidence for use at a hearing or a trial

administrative procedure act

A law passed in 1946 requiring federal agencies to give notice, solicit comments, and (sometimes) hold public hearings before adopting any new rules.

What is the role of an administrative law judge (ALJ)?

An ALJ is an employee of the agency bringing the charges.

Which of the following statements correctly reflects the role of a federal administrative law judge (ALJ)?

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

Under the common law, which of the following is true?

In a case of first impression, a judge may use persuasive authorities rather than precedents.

Which of the following statements are applicable to the doctrine of stare decisis? Choose 2 answers.

Stare decisis is a principle that arose out of the common law, A lower court must follow the precedent of a decision made by a higher court in the same jurisdiction.

Bystander Rule

The common law bystander rule holds that, generally, no one has a duty to assist someone in peril unless the bystander himself created the danger. Courts have carved some exceptions during the last 100 years, but the basic rule still stands.

What are the benefits of the exhaustion doctrine?

The exhaustion doctrine requires resolution of disputes within the agency without involving the court system, except when necessary.

statutory interpretation

The various methods and tests used by the courts for determining the meaning of a law and applying it to specific situations. Congress may overturn the courts' interpretation by writing a new law; thus, it also engages in statutory interpretation.

TFW - In the enabling legislation, Congress may require that an agency hold a hearing before promulgating rules?

YES, Congress does this to make the agency more accountable to the public. After the agency publishes its proposed rule, it must hold a public hearing.

adjudication

agencies adjudicate cases, meaning they hold hearings and decide issues. adjudication generally begins with a hearing before an administrative law judge and may involve an appeal to the full agency or ultimately to federal court

Steps for creating a statutory law include filing a bill in the legislature, debating and voting on the bill in committees and in the legislative assembly, and ultimately:

becoming an act when signed by the president or state governor, or if vetoed, when the veto is overridden.

Common Law

case law/judge made law evolves in awkward fits and starts because courts attempt to achieve two contradictory purposes: predictability and flexibility

When an agency needs to enforce the law or its regulations, what can they do?

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

most important agency rules

legislative rules

How do courts interpret a statute?

plain meaning rule - legislative history and intent - if necessary, public policy.

Agencies have three primary functions that comprise the administrative process:

rule making, enforcement/investigation, adjudication

legislation

the act of making or enacting laws

Historically, the common law developed from:

the unification of local customs and laws in feudal England.

Rulemaking

agencies may promulgate legislative rules, which generally have the effect of statutes or interpretive rules, which merely interpret existing statutes