Business Law: Administrative Law

Formed by and delegated authority to act by Congress

Formed by their state legislature

Created by local governing bodies

1) Legislative (Rulemaking)
2) Executive (Investigative Powers)
3) Judicial (Adjudicative)

Congress can delegate decision-making authority to agencies as long as Congress establishes limits and standards

Executive Agencies
Independent Regulatory Agencies

Lawmakers do not pass detailed legislation, but pass general legislation to make another agency responsible for "taking care of the details"

1) Refers to cabinet departments and their associated agencies
2) Most executive agencies fall within a federal cabinet-level department
3) President appoints members of their cabinet.

1) Typically not involved with regulation
2) Similar to Executive Agencies, but the high ranking administrators are called commissions or boards (5-7 appointed to set terms)

1) Provides guidelines for Agency procedure
2) Created in response to concern that agencies had too much power

1)Notice of the proposed rule
2)Businesses and individuals are given time to comment on the rule.
3) Final rule is then determined by the agency and initially published (Federal Registrar and U.S Code of Federal Regulation.)

1) Involves a trial type hearing
2) Involves witnesses testifying
3) Only required where Congress specifies that rulemaking must take place "on the record"

This rulemaking is only permitted where Congress specifically proscribes for such

Do not create new substantive rule.
Ex: Determining social security benefits
Ex: Granting governmental licenses, leases, and permits

Agency issued declarations of how they will interpret legislative rules and when they will move to enforce certain violations of such rules.

1)Investigations
2) i.e. Citizen reports, Required compliance reports, Inspections, Subpoenas/Search warrant
3)Adjudication
4) i.e. Negotiated settlements, Formal complaint