Administrative Law Exam 2 Part 1

Issue: FTC ACT ordered corps to cease and desist in trade practices -> price discrimination
Ruling: Business must comply with agency requests for info. Agency has the power to investigate as long as the demand is not too indefinite and info sought must be relevant. Subpoena can be issued if law has suspicion of being violated or if agency needs assurance.

-EDF went to sec of agriculture,
-asked to suspend the DDT
-it was hurting birds/nature.
-EDF did not want to ban it.
-DDT was ultimately banned.
-EDF sued to try and get EPA to ban DDT

-Mass petitioned EPA to regulate car emissions because they affect global warming.
-EPA said it did not have such authority to regulate greenhouse gases as pollutants.
-Mass-sued EPA.
-SCOTUS EPA didn't offer reasons why it wouldn't do it.
-Must offer legit reasons why it won't regulate, not to initiate action.
-Agencies act not in a vacuum, but in a legal environment.
-Importance: Agencies must Justify why they issue/ don't issue a rule (Congress does not)

-FTC Brings charges against Cinderella Career for false advertising.
-Examiners says hearing should be thrown out
-Failed to follow procedure - did not have final decision based on the hearing.
-Biased officials - violated due process
-Importance: Hearings need to follow procedures - finale decision needs to be based on the hearing without biases officials

Group of welfare recipients are in danger of losing their benefits without the right to pre-termination hearing. Reforms Formal Hearing -->
Formal Hearing Requirements
1. timely and adequate notice
2. confronting adverse witnesses
3. oral presentation of argument
4. oral presentation of evidence
5. cross-examination of adverse witnesses
6. Disclosure to the claimant of opposing evidence (discovery)
7. Right to retain an attorney (not right to have one provided)
8. Determination on the record of the hearing
9. Statement of reasons for determination and indication of evidence relied on
10. Impartial decision maker

Social Security benefit are a statutory property right - before someone can lose them, they have due process rights. Don't have to have it before but they can appeal after. Need a procedure because they don't want it taken away by mistake. Can't lose social security benefits without due process.
Importance: As a result of this case, social security uses lots of ALJ's.
3 for hearing factors
1) Interest of individual/ result of disarming property
2) Risk of error/probable value of procedural safeguard ( loss/benefit)
3) Cost/Burden of Process

Whether or not a formal adjudication was required. 9th circuit: the words "on the record" are not required to require a formal hearing. There are other things to take into consideration to decide if formal adjudication is required.
Importance: If it was a complex case-needed formal adjudication. If there is a dispute over facts - need formal hearing.

Set prices for amount attorneys could charge veterans/ A lawyer could not charge a veteran over $10 to represent. SCOTUS refers to Congress - 1) the court defers to Congress on shaky admin law 2) the supreme court said we will presume that the Veterans Association claim process is fair. The veterans association claims procedure was upheld

Evidence was brought in without the social security person knowing - violation of due process. If the admin law judge obtains information - the claimant has the right to know and cross examine. Set standards for post hearing evidence, due evidence.
Importance:
- Evidence must be obtained from hearing
- Cross examination
Set standards for post hearing evidence.

Court ordered a new disability hearing. ALJ was mean. Claimants are entitled to be treated w/ respect and dignity. Right to an unbiased judge. ALJ should not conduct a hearing if he is partial or bias to the decision > Ventura had the right to a new hearing. Right to respect, an unbiased judge, and a new case if previous two are denied.

In favor of Hornsby. Liquor Licensing was taken away and the violation was because of lack due process and equal protection. Sets minimal standards for each.

(Law of Licensing) Similar to carter coal. Conflict of interest case. Those with an interest in the proceedings should not adjudicate.

Larkin lost his medical licence for participation in a prohibited practice. The decision of terminating a licence must be based on the hearing evidence. Decision based on the adjudicative hearing.

-Lost drivers license because he could not show his insurance in an accident.
-Court said his licence could not be revoked without adjudication.
-Before revoking, must be minimal amount of adjudication.

-Lost license because got three speeding tickets in certain amount of time.
-Given hearing after evocation.
-The "3 strikes you're out rule" is clear enough that it did not need a pretermination hearing.
-A clear standard does not need a pretermination hearing. Good way of handling it.

-Burger owned a junkyard. Police asked to see papers. Conducted an inspection without a warrant.
-SCOTUS ruled that a warrantless search is ok if: 1) there is good reason to do it (prevent stolen vehicles) 2) necessary to prevent cheating (hiding solent goods when expecting visitors) 3) advise owner and limit discretion of investigators.

1. timely and adequate notice
2. confronting adverse witnesses
3. oral presentation of argument
4. oral presentation of evidence
5. cross-examination of adverse witnesses
6. Disclosure to the claimant of opposing evidence (discovery)
7. Right to retain an attorney (not right to have one provided)
8. Determination on the record of the hearing
9. Statement of reasons for determination and indication of evidence relied on
10. Impartial decision maker

absolute

-agencies enforce rules and impose penalties
-when criminal penalties are involved, constitutional protections apply.
-agencies can only recommend criminal prosecution to prosecutors.
-if non-criminal penalty, agency engages in enforcement.

-not only interested in enforcement, but also look for parties to comply with rules.
-compliance relies on clarity, legitimacy, and consequences of rules.
-courts are involved with enforcement because it is based on matters of law.

-agencies have the power to inspect and investigate to enforce their rules within their jurisdiction
-seach warrants and subpoenas have different rules for agencies.

1. Cutting funds and other financial aids
2. Loss of license
3. Administrative fines, recalls, and forfeitures
4. Criminal penalties
5. Economic Sanctions

-agencies cannot impose criminal penalties themselves, but can recommend them to prosecutors.

1) Information requirements
2) Inspections
3) Tests

-business must provide agency with information they ask for
-there are also record keeping requirements for businesses

-can encourage compliance and educate companies
-very dependent on agency resources
-search warrants

-may also be limited by agency resources
-test product safety and efficacy

1. Consent settlements
2. Advisory opinions
3. Industry guides
4. Cease-and-desist orders (AKA a negative order)
5. Corrective orders

-agency negotiates agreement with company that is not in compliance
-this saves time and money for both agency and company

-non-binding guidelines businesses can refer to, to see how agencies deal with an issue

-stops a company from continuing a practice that is in violation

-can stop companies from false advertisement

1) Agency Initiation
2) Citizen Initiation

-tries to work with companies to make it easy. Treat businesses they regulate like customers.
-their limited resources and understanding treatment makes agencies very easy to cooperate with.

-can petition agency for enforcement action.
-can try to go to court if they are not happy with enforcement.

A proceeding in which evidence is presented and law is applied in determining rights & obligations of individuals, corporations, and other entities
(AKA, a "hearing")

-hearings on the record.
-Must conform to all rules and procedures

-can range over a wide variety of possibilities, down to a student in the principal's office.
-Wide array of procedures.

backward and is specific

the specific parties involved

1. Determining individuals' eligibility for benefits
-ex: social security admin
2. Resolving charges of unfair or illegal personnel & labor relations practices
3. Granting or denying licenses
4. Challenging the award of a government contract
5. Enforcing laws & agency regs to protect public, environment, businesses,
and other entities against harmful practices, threats, dangers

-agency may choose to adjudicate as a strategy for exploring an area or responsibility.
-other times adjudication is used as a matter of due process
-can use adjudication to test a regulation or standard to help develop rules of thumb for application of that certain rule.

-requires fundamental fairness when a government decision applies to one or a few individuals or entities and could result in loss of life, liberty, or property.

-Decision is subject to appeal within agency.
-Final Agency Judgment subject to official judicial review.