Test #3
Without a permit from the U.S. Army Corps of Engineers, Holiday Timeshares, Inc., fills a wetlands area that it owns before constructing a residential resort. Under the Clean Water Act, this is most likely
a violation
Violators of emissions standards under the clean air act may be subject to criminal penalties
True
Kristen receives unsolicited merchandise in the mail. Kristen
may keep the merchandise without any obligation to the sender
Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Commission is most likely to issue
neither a cease-and-desist order nor a counter advertising order
Dita takes out a student loan from Everloan Bank. When she fails to make the scheduled payments for six months, Everloan advises her of further action that it will take. This violates
no federal law
A party can challenge an administrative regulation as so irrational as to be arbitrary and capricious
True
Administrative agencies at various levels of government work together and share the responsibilitiy of enforcing particular regulations
True
The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue:
A subpoena duces tecum
Bertha owns land located outside Centre City. Bertha sells the land to Disposal & Recycling, Inc., which establishes a hazardous waste disposal facility at the site. Disposal & Recycling accepts only waste transported by Eco Trucking Inc. exclusively from Federated Industries, Inc. Several years later, Disposal & Recycling closes its facility and sells the land to Garden Variety Retail Corporation, which builds a Home & Yard store on the site. Meanwhile, some of Centre City's citizens complain to the Environmental Protection Agency (EPA) that the city's municipal water supply is polluted. The EPA investigates and discovers that the sources of the pollution are leaks of hazardous waste from what is now the Home & Yard site. The EPA cleans up the site. Who can be held liable for the cost of cleaning up the site and why? What standards must Centre City meet regarding the water? Explain your answers.
ANSWER: Disposal & Recycling, Eco Trucking, Federated Industries, or Home & Yard may be held liable for the cost of cleaning up the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980, or Superfund, the EPA can recover the cost of cleaning up a leaking hazardous waste disposal site from the party who generated the waste disposed of at the site, the party who transported the waste to the site, the party who owned or operated the site at the time of the disposal, or the current owner of the site. These potentially responsible parties (PRPs) are jointly and severally liable: a party who generates only a fraction of the waste, for example, can be held liable for the entire cleanup cost. Of course, whoever is held liable for the cost can bring a contribution action against any other person who is, or who may be, liable for a percentage of the expense. Under the Safe Drinking Water Act of 1974, Centre City, as an operator of a municipal water supply system, is required to meet the EPA's standards for the levels of pollutants in public water systems. Centre City must use the best available technology that is economically and technologically feasible to meet these standards.
Administrative agencies—like the Securities and Exchange Commission (SEC), the Federal Trade Commission (FTC), and the Food and Drug Administration (FDA)—make rules. What are the two (2) basic types of rules called, and how binding are each of them? Also, what must an administrative rule NOT do? Explain your answers.
ANSWER: The rules that are made according to the notice-and-comment rulemaking procedures are sometimes referred to as "legislative rules," and they are as binding as the laws that Congress makes. Such rules, like laws, must not violate the Constitution. Unlike laws, however, such rules must not exceed the power that Congress conferred on the agency in its enabling legislation.Agencies can adopt rules through less formal actions. These rules may be referred to as "interpretive rules" and are specifically exempt from the requirements of the Administrative Procedure Act of 1946. Interpretative rules declare an agency's interpretation of its enabling statute's meaning, without imposing direct, legally binding obligations or establishing legal rights. They may have practical significance, however, because they can indicate that formal rulemaking may occur if these less formal positions are ignored.
All federal government agencies must make their records available electronically on the Internet.
True
An international custom is a general practice accepted in the international arena as law
True
Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
Congress, through enabling legislation
Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim
True
An_____________ is a statement required by the National Environmental Policy Act (NEPA) of 1969 for any major federal action that will significantly affect the quality of the environment. The statement must analyze the actions impact on the environment and explore alternative actions that might be taken.
Environment Impact Statement (EIS)
A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations (UN) to take effect.
False
An environmental impact statement (EIS) must analyze the impact on any affected business of proposed environmental controls.
False
Federal statutes provide the basis for issuing regulations to control air pollution emanating from stationarysources only.FALSE. The Clean Air Act of 1963 and subsequent a
False
In most instances, an agency is not required to obtain a search warrant before a physical search for evidence is conducted.
False
In most instances, an agency is notrequired to obtain a search warrant before a physical search for evidence is conducted.
False
Labels on vegetables and fruits are not required to indicate where the food originated.
False
Performance standards for major sources of air pollution require use of the practically affordable control technology (or PACT).
False
The Environmental Protection Agency (EPA) can regulate a substance that poses an imminent hazard but cannot prohibit the use of a substance altogether.
False
The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts—Regulation Z.
False
The primary responsibility for implementing air-quality standards rests with the federal government
False
The primary responsibility for implementing air-quality standards rests with the federal government.
False
There are no defenses to liability under the Comprehensive Environmental Response, Compensation, and Liability Act.
False
There are not significant differences between a trial and an administrative hearing
False
Under the Clean Water Act (CWA) of 1972, as amended, criminal penalties apply whether a violation was intentional or unintentional.
False
Warrants are required to conduct administrative searches in all highly regulated industries.
False
When the meaning of a statute's language is unclear and an agency interprets it, a court need not follow the interpretation even if it is reasonable.
False
Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses.
True
Vanna and many other consumers complain to the FTC that a Whoopie Wonders Company ad is deceptive. The FTC's first step is to:
Investigate
The US Department of Homeland Security issues a rule. Like the rules of other federal administrative agencies, this rule is compiles in:
The Code of Federal Regulations (CFR)
Injured individuals can rely on the common law to obtain damages and injunctions against business polluters.
True
Power Up Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Quantum Automotive Stores, a retail company that sells Power Up's batteries, engages in deceptive advertising practices. What actions can the FTC take against Quantum? Explain your answer.
The Federal Trade Commission (FTC) can investigate the problem, and if, after the investigation, it believes that Quantum has engaged in deceptive advertising, it can send a formal complaint to the alleged offender. Quantum may agree to a settlement. If not, the FTC can conduct a hearing before an administrative law judge (ALJ). If the FTC succeeds in proving that Quantum's ads are deceptive, it can issue a cease-and-desist order that requires the advertising to stop. It might also impose a counteradvertising sanction, requiring Quantum to issue new ads—in print, on radio, and on television—to inform the public about the earlier misinformation.
Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with
The food and drug administration (FDA)
State and federal laws permit a buyer of goods sold door to door to cancel the contract within a specified time
True
The major function of an administrative agency is rulemaking
True
The public must be provided with adequate advance notice of scheduled federal administrative agency meetings and agendas
True
A ________ is an agreement or contract between two or more nations that must be authorized and ratified by the supreme power of each nation
Treaty
The government of Canada sets a limit on the amount of beef that can be imported from the United States.This is:
a quota
Green River Energy Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Green River must install certain equipment
before beginning operations
Under CERCLA ("Superfund"), liability for cleanup costs is joint and several and can be assigned to any potentially responsible party (PRP). Who/What are the four (4) main PRPs?
a.The person who generated the wastes disposed of at the site. b.The person who transported the wastes to the site. c.The person who owned or operated the site at the time of the disposal. d.The current owner or operator.
Delphi, Ltd., imports appliances made in Southeast Asia into the United States. To obtain a larger shares of the US market, Delphi sells the appliances at lower prices here than in its exporting countries. With respect to these imports, the United States may:
assess antidumping duties
Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Deep Mining Company, a US firm. To seek redress for their injuries in a US court, these citizens can:
bring civil suits under the Alien Tort Claims Act of 1789
Before adopting new regulations to govern Internet-based phone serv¬ices, the Federal Communications Commission may not
ignore the Administrative Procedure Act to streamline proceedings.
The Securities and Exchange Commissions decides to create a new rule relating to the dissemination of material nonpublic information through corporate blogs, tweets, and Web sites. The first step is to:
publish a notice of the proposed rulemaking (NPRM)
The Internal Revenue Service (IRS) wants to seize certain documents of Monetary Propriety, Inc. Deciding whether its permissible for the IRD to request or seize the documents depends on whether the documents are
relevant
Global Properties Inc (GPI) a US firm owns property in Hong Kong. The government in Hong Kong takes GPI's property without paying for it. A US court will probably not examine the validity of this act committed by Chine within its own territory, under:
the act of state doctrine
Special Roast Coffee, Inc,. processes and sells a variety of coffee products. Special Roast's product packages must include:
the contents' net quantity and the product's identity
Plastix Produx Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Plastix Produx wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
the exhaustion doctrine
New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement (EIS) is:
unnecessary
Truck Transport Company is subject to a decision by the National Labor Relations Board. Truck Transport appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
was plainly contrary to the evidence
