BAC 421 – Business law Chp. 4

The collection of rules and decisions made by administrative agencies to fill in particular details missing from constitutions and statutes.

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

three: legislative, judicial, and executive

Interstate Commerce Commission (ICC), created to regulate the anticompetitive conduct of railroads.

A statute that specifies the name, functions, and specific powers of an administrative agency and grants the agency broad powers for the purpose of serving the public interest, convenience, and necessity.

they can enact 3 kinds of rules:
1. procedural
2. legislative
3. interpretive

Rules regarding the internal operations of an agency

A nonbinding rule or policy statement issued by an administrative agency that explains how it interprets and intends to apply the statutes it enforces.

policy expressions that have the effect of law

An order to appear at a particular time and place and provide testimony.

An order to appear and bring specified documents.

A judge who presides over an administrative hearing; may attempt to get the parties to settle but has the power to issue a binding decision.

A statement in which a company agrees to stop disputed behavior but does not admit that it broke the law.

A binding decision rendered by a judge

1. executive agency
2. independent agency

An agency that is typically located within the executive branch, under one of the cabinet-level departments. The agency head is appointed by the president with the advice and consent of the Senate

An agency that is typically not located within a government department. It is governed by a board of commissioners, who are appointed by the president with the advice and consent of the Senate.

1. Independent agencies have a more narrow scope of authority, whereas executive agencies tend to have a broad scope.
2. Independent agencies (or commissions) focus on activities of industry, such as rate making and licensing, known as Economic regulation.
3. Executive agencies focus on social regulation

An agency that has characteristics of both executive and independent agencies.

Federal legislation that places limitations on how agencies are run and contains very specific guidelines on rule making by agencies

1. Formal
2. Informal
3. Hybrid

A type of rule making in which an agency publishes a proposed rule in the Federal Register, considers public comments, and then publishes the final rule.

A type of rule making that is used when legislation requires a formal hearing process with a complete transcript; consists of publication of the proposed rule in the Federal Register, a public hearing, publication of formal findings, and publication of the final rule if adopted.

A type of rule making that combines features of formal and informal rule making; consists of publication in the Federal Register, a written-comment period, and an informal public hearing with restricted cross-examination.

The government publication in which an agency publishes each proposed rule, along with an explanation of the legal authority for issuing the rule and a description of how the public can participate in the rule-making process, and later publishes the final rule.

1. faster
2. cheaper
3. no formal public hearing or record

A rule that does not create any new rights or duties but is merely a detailed statement of an agency's interpretation of an existing law, including the actions a party is to take to be in compliance with the law.

Agency decides whether public participation allowed; includes rule-making proceedings with regard to "military or foreign affairs", "agency management or personnel", and "public property, loans, grants, benefits, or contracts" of an agency, or when public notice and comment are "impractical, unnecessary, or contrary to public interest"

A general statement about the directions in which an agency intends to proceed with respect to its rule-making or enforcement activities; has no binding impact on anyone.

A type of rule making in which representatives of concerned interest groups and of the involved government agency participate in mediated bargaining sessions to reach an agreement, which is forwarded to the agency.

1. Statutory Control- enabling legislation, Congress can create or destroy agencies
2. Political Control- President can remove and replace the head of an agency
3. Judicial Review- may be reviewed in fed court, biggest constraint on agency power
4. Informational

Refers to evidence that a reasonable mind could accept as adequate to support a conclusion. It is defined as "more than a scintilla but less than preponderance" and consists of "such relevant evidence as a reasonable person would accept as adequate to support a conclusion."

Federal legislation that mandates and facilitates public access to government information and records, including records about oneself. Sensitive information (e.g., on national security) is excluded.