LEGAL 2700 CHAPTER 15

Boards, bureaus, commissions, and organizations that make up the governmental bureaucracy, who create and enforce laws constituting the legal environment of business

Can issue rules/regulations that have the impact of laws

Can make decisions like a court

1. Provide Specificity
2. Provide Expertise
3. Provide Protection
4. Provide Regulation
5. Provide Services

Agencies add details into the creation and the enforcement of laws that Congress and the courts cannot

Expert knowledge is required to make laws in some areas (FDA)

Protects the general public from business (EPA)

Agencies use regulation to control firms that have a monopoly (utilities)

Operating government programs (social security)

Power to create rules and regulations

Power to investigate, prosecute, advise, and supervise

Power to decide controversies

1. Rule making
2. Adjudicating
3. Advising
4. Investigating

Issue rules and regulations that have the power of law (rules supplemented with guidelines)

Fact finding and the application of laws to the facts

Requires a firm to stop the objectionable activity and refrain from any similar violations

A settlement with the agency with no admission of guilt, but an agreement to stop the objectionable activities

Agencies advise congress, government officials, businesses, and the general public

The agency advises a business whether the future course of action will cause any violations

Regular investigation of illegal activities

- 5 to 7 board members (one chairperson)
- Appointed by president and confirmed by senate
- Simple majority only from same political party
- Staggered terms with no concurrent employment

Appointed by the president and has the power to appoint staff

Responsible for the legal publication of agency actions in the federal register

An official document which lists the new and proposed regulations of agencies.

The chief law officer and legal advisor

People who are not employed by the agencies, but have expertise in an area that can be helpful

Chief operating official

Operating bureaus assigned different areas of activity

Investigate alleged violations of the law

Judges who perform the adjudicative fact-finding functions of an agency, while being separated from political bias and other board members to ensure impartial rulings

1. Public hearings allow interested parties to present evidence in support of or against new regulations
2. React to the force of public opinion
3. Each branch of government has some control over the administrative process

A person seeking judicial review of an agencies decision must establish standing to sue
1. Reviewability
2. Aggrieved Party

Is the agency's decision subject to judicial review?`

Plaintiff must prove they have been harmed

A party seeking judicial review can challenge the validity of rule
1. Valid Delegation
2. Authority Exceeded

Delegation of authority must be definite and limited

Agency exceeds the authority intended by the legislation

Agencies develop their own procedures tailored to the industries they regulate
1. Exhaustion of Remedies
2. Primary Jurisdiction

Courts refuse to review administrative actions until all of the administrative remedies and procedures have been exhausted

When a case is filed in court that requires the review of an administrative agency due to its subject matter

As long as the agency can provide substantial evidence to support their fact-finding, the court will not disturb the findings

1. Difficult to hire and retain best qualified people
2. Difficult to discharge unsatisfactory employees
3. People in top positions are chosen for political purposes, not for their expertise

1. Delay in the decision making process
2. Administrative process is full of red tape
3. Rules are written in complex legal language
4. Dictatorial in nature

1. Rules overlap and conflict
2. Enforcement varies over time
3. Action for illegal conduct ends mostly with consent orders