Business Law Ch 6

An administrative agency is a governmental body charged with administering and implementing legislation.

Administrative agencies may make the rules, police the community to see the rules are obeyed, and sit in judgment to determine violations of their rules.

Because administrative agencies have broad powers, they are subject to strict procedural rules as well as disclosure requirements.

The modern administrative agency typically possesses legislative, executive, and judicial powers.

The Freedom of Information Act provides access to any information upon request.

The public has access to the activity of administrative agencies in three ways: (1) open records, (2) open meetings, and (3) public announcement of agency guidelines.

The Administrative Procedure Act is a federal law that establishes the operating rules for administrative agencies.

The Sunshine Act requires most meetings of major administrative agencies to be open to the public.

In an emergency, an administrative agency can act beyond the scope of the statute that created it.

The Electronic Freedom of Information Act Amendments of 1996 extend the public availability of information to electronically stored data.

The authority of an agency is limited to the technology in existence at the time the agency was created.

Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.

It is a conflict of interest for administrative agencies to allow members of the industry that is to be regulated, to participate in rule-making deliberations.

A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at which members of the public may express their views and make suggestions.

Regulations properly adopted by agencies are important, but they do not have the full force of law, as do statutes.

The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis.

An administrative agency has the power to investigate, to require persons to appear as witnesses, to require witnesses to produce relevant papers and records, and to bring proceedings against those who violate the law.

Agency investigations of possible violations of agency rules are handled through independent enforcement agencies.

The Federal Register Act provides that printing an administrative regulation in the Code of Federal Regulations is public notice of the contents of the regulation to persons subject to it or affected by it

An administrative agency is barred from examining the records of a business enterprise by the constitutional guarantee against unreasonable searches and seizures.

Within the area in which the administrative agency is authorized to make decisions, the agency can be regarded as a specialized court or court of limited jurisdiction.

An administrative agency cannot hold a hearing without a jury.

In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action.

An agency hearing is generally not subject to the rules of evidence.

A consent decree is an informal settlement of an enforcement action brought by an administrative agency.

Before an appeal can be taken to a court concerning a determination of an agency, all administrative remedies must be exhausted.

A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts.

Decisions made by agencies are more likely to be reversed than to be accepted by the court on appeal.

As Courts now tend to accept an agency's reasonable interpretation of a statute involving a technical matter, even though it was not the only interpretation that could have been made.

An administrative agency whose erroneous decision causes a regulated person or enterprise substantial loss is liable for such loss regardless of whether the agency acted in good faith.

To satisfy the requirements of due process, an agency handling a complaint must generally _______, although there is no right to _________.
a. give specific recommendations to the director of the agency, cross-examine witnesses.
b. give notice and hold a hearing, remain silent.
c. give notice and hold a hearing, trial by jury before an agency.
d. give sufficient notice only, remain silent.

An administrative agency can be created to perform:
a. only one of the three functions of government (executive, legislative, or judicial).
b. any two of the three functions of government.
c. all three of the functions of government.
d. none of the three functions of government.

Administrative hearings often have additional parties involved, called ______, who are _______ with an interest in the case are permitted to participate.
a. intervenors, political entities.
b. industry organizations, intervenors
c. intervenors, ALJ's.
d. intervenors, industry organizations.

Generally, which power(s) does (do) an administrative agency possess?
a. all powers necessary to effectively perform the duties entrusted to it
b. legislative only
c. judicial only
d. executive only

The Freedom of Information Act:
a. is to be strictly construed to prevent unauthorized disclosures.
b. has too many exemptions to be useful.
c. is intended to subject agency action to public scrutiny.
d. puts the burden of proof upon the person requesting the information.

Meetings are to be open to the public under:
a. the Administrative Protection Act.
b. the Sunshine Act.
c. the Freedom of Information Act.
d. the Administrative Procedure Act.

An administrative regulation:
a. is a guideline that may be voluntarily followed.
b. has the force of law.
c. is a suggestion of what will protect the environment.
d. is a standard used to guide an industry at the industry's discretion.

When it comes to administrative agencies, courts:
a. regard agencies as able to perform their duties effectively.
b. accept rules that have been established by agencies using a rational basis.
c. do not substitute their own judgment in agency decisions.
d. All of these.

Before an agency can begin rulemaking proceedings it must be given jurisdiction:
a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. From the voters in the district.

The "public comment" period for proposed administrative agency rules must be at least __________ days.
a. 30
b. 60
c. 90
d. 120

Proposed administrative regulations must be:
a. printed in the Federal Register.
b. published in the trade journals of those trades that will be affected by the proposed rules.
c. Neither printed in the Federal Register nor published in the trade journals of trades that will be affected.
d. Both printed in the Federal Register and published in the trade journals of trades that will be affected.

42. Which of the following is part of an administrative agency's power to investigate?
a. an investigation to determine whether additional administrative rules need to be adopted
b. an investigation to ascertain facts with respect to a particular suspected or alleged violation
c. an investigation to determine whether the defendant in a proceeding before the agency is complying with its final order
d. all of these

Concerning administrative investigations:
a. agencies are severely limited by the constitutional protection against unreasonable searches and seizures.
b. a search warrant is always required to search premises.
c. papers and records generally may be subpoenaed by an agency.
d. a person does not have constitutional protection against unreasonable searches and seizures.

The United States constitution places the most significant limitations on administrative investigation in the area of:
a. search and seizure of the person.
b. aerial inspection.
c. search and seizure of papers and records.
d. guarantee against self-incrimination.

A subpoena to testify or to produce records:
a. is prohibited by the constitutional guarantee against unreasonable searches and seizures.
b. is an illegal attempt to gain information by compulsion.
c. cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure.
d. must be approved by corporate officers to be effective.

The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has subpoenaed corporate records.
a. Sixth Amendment.
b. First Amendment.
c. Fifth Amendment.

d. Fourth Amendment

Under the _______ Amendment, agency officials have the right to conduct________ with a warrant, but a(n) ________ inspection is permitted when violations are dangerous to public health and safety.
a. Sixth, inspections, warrantless.
b. First, inspections, warrantless.
c. Fourth, inspections, warrantless.
d. First, interviews, warrantless

Which of the following is beyond the enforcement power of an agency?
a. requiring proof of compliance with agency regulations
b. issuing a cease-and-desist order
c. convicting of criminal violations
d. imposing civil penalties

A significant difference between an administrative agency hearing and a court hearing is that:
a. a binding decision can only be made by an agency.
b. there is no right of trial by jury before an agency.
c. a court hearing allows no public intervention.
d. a court can enforce its decision.

A(n) __________ is a negotiated disposition of a matter before an administrative agency, generally without public sanctions.
a. formal settlement
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict

The term "exhaustion of administrative remedies" means that:
a. parties to an agency action must be diligent in pursuing their case.
b. parties to an administrative action must take their appeal to a court of law.
c. parties to an administrative action can appeal only after the agency has made a final decision.
d. administrative agencies tend to work very hard.

Which of the following is true about judicial review of agency action?
a. Judges tend to substitute their own judgment for that of the agency.
b. Courts will reverse agency decisions merely because the court would have made a different decision based on the same facts.
c. Courts will reverse a decision if they disagree with the legal interpretation.
d. There is a right to a trial by jury before an agency.

The ______can issue a(n) ______ to stop a practice that it decides is improper. This order is binding unless reversed on an appeal.
a. ALJ, cease-and-desist order

b. Court, monetary fine

c. FTC, cease-and-desist order.
d. FTC, appeal

In reviewing agency action, courts generally apply the:
a. "beyond a reasonable doubt" standard.
b. "preponderance of the evidence" standard.
c. "arbitrary and capricious" standard.
d. "rational relationship" standard.

If an agency causes a substantial loss to a business by enforcement of its laws, that business:
a. always can hold the agency liable for damages.
b. never can hold the agency liable for damages.
c. may seek damages if the agency acted in bad faith.
d. may seek damages if the agency complied with its own guidelines.