CH 15

- administrative agency
-has form and effect of law

legislative body

R: Administrative agency , has form and effect of law
L: legislative body

regulatory activity
board, bureau, or organization that makes governmental bureaucracy
- Created by congress

- securities and exchange commission
- Federal trade commision
-Federal reserve board of Governors
-CFPB (consumer Financial Protection Bureau)

- hard to move things through congress fast
-agencies can be delegated to pass laws quickly with details

able to hire specialists to help meet certain regulatory standards

- can take enforcement actions (usually for groups)
-Ex: Sprint charging everyone extra $2 - not reasonable for us to sue so agency would step in

agencies often replace competition with regulation

services

agencies exercise their quasi-legislative power by issuing rules and regulations that have the force and effect of law
-but must follow administrative procedures act
-Allows time for public comment
-agency has duty to review those comments
-may apply to a business practice or may apply only to an industry

issued by agencies to supplement rules
- advisory, but do not have form of law
-can also be created
do not need to follow administrative procedures act

the quasi-judical function involved both fact-finding and applying law to the facts

order from agency that violators must stop what they are doing and refrain in the future

order by the agency that is agreed upon by the accused and requires the accused to waive rights to judicial review

paypal took their customers and signed them up for credit cards without their permission
- also charged late fees when not late
-did not handle disputes well
-did not get their $15 dollars off when advertised

$15 million to victims
-$10 million civil penalty
-required improved disclosures

From exec. branch reporting to president, reporting to Congress, recommending legislation to congress
-issuing advisor, opinions to Businesses or individual

rule to protect grieving family members
- someone submitted an advisory request
-said to comply to rules, must show prior when showing caskets

investigate activity and practices that may be illegal
-subpoena powers to question witnesses, file reports,

Robinhood was being paid by high speed trading firms to perform high speed trades
-advertised to customers as "free"
-signed consent order
-$65 million fine
-Civil fraud investigation

- 5-7 members
-one member is chairperson
-appointments require confirmation
-Appointees not allowed to be employed anywhere else during term

presiding officer at meetings, most visible

responsible for minutes and records

supervises administration functions

chief law officer and legal advisor

just a member
-chairmen, so he reports to everyone
-most known

perform the adjudicating, fact finding functions
- hear cases of the alleged law violations and apply them

is the action reviewable? is it subject to judicial review? usually yes

- person who suffered legal wrong because of agency
-adversely affected or aggrieved by agency action

-Scolia reversed the 9th circuit opinion
-SC said they did have standing to sue
- Rancher Bennett sued since he needed water for the ranch

- must be definite
-must be limited
Has the agency extended its authority?

courts refuse to review adminstrative actions until a complaining party has exhausted all of the administrative remedies and procedures available to him or her for redress

applies when a claim is originally filed in the courts and resolution of their issue placed with the administrative body
-judicial process will be suspended pending admission + judicial body
-goes back to Exhaustion of remedies

-court assumes agency was correct in any factual determination
-STANDARD: uphold agency if findings are supported by substantial evidence in the record

-regulation increases the cost of doing business
-Consumer pays both indirect cost of regulation
-companies create matching internal Bureacracy
-(pays people who know the language of regulating agency)
-time and expense of additional paperwork

-created CFPB
-occurred after 2007 recession
-key piece of legislation