Business Law Chapter 43
steps involved in notice-and-comment rulemaking.
notice of proposed rulemaking comment period final rule
Charges that an individual or a firm has violated an administrative rule are first brought before
administrative law judge
Congress can abolish an
agency all together if it wishes.
Executive agencies are often referred to as the
4th branch of government
The law that specifies the procedural requirements that all federal agencies must follow in their rulemaking, adjudication, and other functions is the
Administrative Procedure Act
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:
Freedom of Information Act request.
Who are the members of juries in administrative hearings?
No one, because there are no juries.
What happens when no party appeals an adjudication?
The ALJ's decision becomes the final order of the agency
The New Chevron Standard for Courts When Reviewing Agency Interpretations of Law, which Involves the Following Two Questions:
a. did congress directly address the issue in dispute to the statute, stat. language prevails b. if the statute is silent, is the agency's interpretation reasonable, court should uphold agency's interpretation
The Arbitrary and Capricious Standard Includes Factors, Such as Whether the Agency Has Done Any of the Following:
a. failed to provide explanation for decision b. changed prior policy without justification c. considered legally inappropriate factors d. failed to consider a relevant fact e. made a decision contrary to evidence
To Determine Whether an Agency Is Abusing Its Discretion in Pursuing Information, a Court May Consider Such Factors as the Following:
a. purpose b. relevance c. specificity of demand for docs d. burden of demand on the party
Agencies Can Conduct Warrantless Searches in the Following Situations:
a. searches in highly regulated areas b. certain types of hazardous operations c. emergency situation
Check My Work AT&T wants to obtain additional rights to operate within the 700 MHz spectrum in the U.S. The Federal Communications Commission (FCC) has rules and regulations that govern wireless spectrum auction. The FCC is
administrative agency
One important difference between formal litigation in a court and an administrative hearing before an administrative law judge (ALJ) is that:
an administrative hearing can admit hearsay as evidence.
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 hear by
an administrative law judge
Courts generally hold that Article I of the U.S. Constitution is the
basis for administrative law
All administrative agencies taken together are considered the
bureaucracy of the federal government.
Federal administrative agencies are created:
by enabling legislation passed by Congress
The EPA wants to ensure that Delmar Oil Company is in compliance with federal environmental rules regarding cleanup of oil and gasoline spills. In order to do so, it:
can conduct an on-site inspection
The Bureau of Alcohol, Tobacco, and Firearms suspects that Pawn Shoppe, Inc. is violating firearms regulations. To obtain evidence, the bureau:
can search the premises and seize evidence without a search warrant.
An independent regulatory agency is usually run by
commission or board
The judicial branch exercises
control over agency powers through the courts' review of agency actions.
Check My Work 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
defer to the agency's interpretation.
Congress passed the Securities Exchange Act of 1934, which created the Securities Exchange Commission. This legislation, which created an independent regulator agency, is known as
enabling legislation.
The delegation doctrine holds that Article I grants Congress the authority to delegate some of its powers by
establishing administrative agencies.
Private communications between the ALJ and any party to the agency proceedings are known as
ex parte communications
two basic types of administrative agencies
executive agencies and independent regulatory agencies
The main difference between independent regulatory agencies and executive agencies is that:
executive agencies are subject to the authority of the president to a greater degree than are independent regulatory agencies.
After the Chevron case, all of those involved in rulemaking by administrative agencies accepted that decision without discussion t or f
false
All cabinet departments of the executive branch are included in independent regulatory agencies. t or f
false
Before any on-site investigation by a federal administrative agency, most businesses resist those inspections by going to an appeals court t or f
false
Every administrative hearing procedure must be exactly the same as legislated by Congress. t or f
false
The administrative law judge and the agency's investigative and prosecutorial staff are basically one integrated unit. t or f
false
The major function of today's federal agencies is adjudication. t or f
false
The president has the power to appoint
federal officers and also the power to veto enabling legislation.
Congress can limit the power of federal agencies through its
funding authority.
Does an agency involved in rulemaking need to respond to all comments during the comment period
no, agency can respond to an comment that are directly about the proposed rule
Following a hearing, an administrative law judge (ALJ) first issues a
initial order
The FDA is investigating Shari's Cosmetics for possible violation of purity regulations. The FDA wants Yasmin, their lead chemist for the company, to testify at an administrative hearing. Yasmin refuses, so the FDA
issues a subpoena ad testificandum
The EPA passes a proposed a rule change to the Clean Air Act related to the discharge of emissions by factories. The EPA's action would be considered arbitrary and capricious for all of the following reasons except:
it failed to provided the required time for notice and comment.
The EPA conducts meetings to discuss the possibility of creating additional regulations within the next five years. Under the Government in the Sunshine Act, the meetings
may be closed to the public
The Freedom of Information Act exempts records pertaining to
national security
What happens when substantial changes occur to a proposed rule because of public comments?
new proposal and new opportunity for comments are required
When an agency formally creates a new rule, its first step is to
publish a notice of the proposed rulemaking proceeding in the Federal Register
three agencies' powers.
rule making enforcement adjudication
two basic types of subpoenas.
subpoena ad testificandum subpoena duces tecum
Another way to describe the legislative rules that agencies create is that they are
substantive rules
The EPA and Zenith Dry Cleaners are negotiating a settlement for alleged violations of federal emissions standards. The EPA issues subpoenas duces tecum for all of Zenith's financial records for the past two years and orders Zenith to pay the costs. Zenith challenges the subpoena on the basis that:
the agency's request is unrelated to the emission violation and instead is aimed at pressuring Zenith into a settlement.
If an agency failed to follow proper rulemaking procedures when it issued the final rule, the rule may not be binding. t or f
true
The Federal Register is a daily publication of the executive branch that prints (and offers online) government orders, rules, comments, and regulations. t or f
true
When a negotiated settlement cannot be reached, the agency may issue a formal complaint against the suspected violator. t or f
true
When regulated groups oppose a rule adopted by an agency, they can bring a lawsuit arguing that the rule was not authorized by the enabling statute. t or f
true