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Administrative agencies
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Boards, bureaus, commissions, and organizations that make up the governmental bureaucracy
- create and enforce laws constituting the legal environment of business
- create and enforce laws constituting the legal environment of business
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Reasons for agencies
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To provide:
-Specificity
-Expertise
-Protection
-Regulation
-Services
-Specificity
-Expertise
-Protection
-Regulation
-Services
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Functions of Agencies
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•Rule making
•Adjudicating
•Advising
•Investigating
•Adjudicating
•Advising
•Investigating
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Power of legislative agency
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- create rules & regulations
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Power of executive ageny
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- power to investigate, prosecute, advise, supervise
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Power of judicial agency
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power to decide controversies
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Organization of agencies
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- 5 to 7 members (1 chairperson)
- Appointments require senate confirmation
- Can't engage in other employment
- Appointments require senate confirmation
- Can't engage in other employment
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chairperson
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- presiding officer at meetings
- belongs to same political party as the president
- belongs to same political party as the president
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secretary
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- signs orders and official correspondence
- legal custodian of records
- legal custodian of records
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advisory councils
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- not employed by the agency
- provide interaction between regulators and those being regulated
- provide interaction between regulators and those being regulated
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executive director for administration
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- chief operating official of an agency
- supervises administrative functions
- supervises administrative functions
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general counsel
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chief law officer and legal adviser
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director of operations
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duties and suborganizaiton varies across agencies
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regional offices
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investigate alleged violations of the law
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administrative law judges (quasi judicial staff)
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perform the adjudicative fact finding functions
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immunity
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protection of judges from liability for damages based on decisions
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influencing agency decisions
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Agencies give public notice of proposed rules and hold public hearings
- agencies react to the force of public opinion
- agencies react to the force of public opinion
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standing to sue
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Judicial review of any administrative agency's decision requires standing to sue
- challenging party must address reviewability and aggrieved party
- challenging party must address reviewability and aggrieved party
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review of rule making
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Administrative agency must propose rules and regulations within its power
- legislatures can correct rules
- legislatures can correct rules
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Basic issues challenging the validity of the rule
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-Is delegation valid?
-Authority exceeded?
-Authority exceeded?
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Review of adjuciations
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- judicial review of agencies' adjudications is limited
- agencies develop own rules of procedure
- agencies develop own rules of procedure
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exhaustion of remedies
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limits when courts can review administrative decisions
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primary jurisdiction
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applies when a claim is originally filed in the courts
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review of factual determinations
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evidence is assessed by analyzing the record of the agency's proceedings
- Court's do not reweight the evidence, make independent determinations of fact, substitute their view of evidence
- Court's do not reweight the evidence, make independent determinations of fact, substitute their view of evidence
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criticisms of administrative process (relating to personnel)
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-Difficulty in hiring and retaining the best-qualified people
-Difficult to discharge unsatisfactory employees
-Personnel in top positions are selected for political reasons
-Difficult to discharge unsatisfactory employees
-Personnel in top positions are selected for political reasons
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criticisms of administrative process (relating to procedures)
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-Delay in the decision-making process
-Administrative process is overwhelmed with paperwork and meetings
-Rules and regulations are written in complex legal language
-Dictatorial in nature
-Administrative process is overwhelmed with paperwork and meetings
-Rules and regulations are written in complex legal language
-Dictatorial in nature
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criticisms of administrative process (relating to substance)
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-Rules and regulations overlap and conflict
-Actions for illegal conduct end only with consent orders
-Enforcement of laws varies over time
-Actions for illegal conduct end only with consent orders
-Enforcement of laws varies over time
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costs to business
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- regulation increases the cost of doing business
- consumer pays both direct and indirect cost of regulation
- consumer pays both direct and indirect cost of regulation
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costs to society
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- public is forced to pay for things that are not needed
- inefficient regulatory process increases the cost significantly
- inefficient regulatory process increases the cost significantly
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