Legal Environment – Exam 3 – Muncy

the rules, orders, and decisions of federal, state, and local government agencies established to perform a specific function

agencies authorized by federal or state legislation to make and enforce rules to administer and enforce legislative acts

Administrative Agencies

Create "rules and regulations for the purpose of carrying out the act"
Conduct investigations
Investigate possible violations of federal antitrust statutes
Publish findings of its investigations
Recommend new legislation
Hold trial-like hearings to resolve disputes

prevent the use of "unfair methods of competition" but does not define unfairness

Executive Agencies
Independent Regulatory Agencies

Executive

Agencies' functions associated with the legislature

Agencies' functions associated with the executive branch

Agencies' functions associated with the courts

Administration agencies make these, which are as legally binding as laws passed by Congress or State legislatures

Administrative agencies also issue these, which simply declare policy and do not affect legal rights or obligations

"Necessary and Proper Clause" of Article 1, Sec. 8 of the U.S. Constitution authorizes delegating such powers to administrative agencies

President's power to appeal federal officers and President's veto power

Enacting and Changing enabling legislation (including abolishing an agency all together)
Determining funding for the agency
Investigating agencies
Freezing agency enforcement efforts/regulations before they take effect
Amending the Administrative Procedure Act (APA) of 1946

Courts' review of agency action

party seeking court review must first exhaust all administrative remedies before filling lawsuit seeking court review

court will not review administrative decision until it is "ripe" for review

In the absence of any directives from Congress concerning a particular agency procedure, the APA applies
Imposes procedural requirements that all federal agencies must follow in their notice, rule making, adjudication, and enforcement functions

Rule Making
Enforcement and Investigation
Adjudication

One of Congress' goals in enacting the APA was to provide for more judicial control over administrative agencies

Did the agency fail to provide a rational explanation for its decision?
Did the agency change its prior policy?
Did the agency consider legally inappropriate factors?
Did the agency entirely fail to consider a relevant factor?
Did the agency render a decision plainly contrary to the evidence?

"An agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law and policy

Conduct inspections and tests
Issue subpoenas (either ad testifcandum or duces tecum)
Conduct searches during site inspections
Issue search warrants (warrantless inspections in certain limited situations e.g. firearms or liquor)

Whether the investigation has a legitimate purpose (an improper purpose is harassment)
The relevance of the info being sought
The specificity of the agency's demand for testimony or documents
The burden of the demand on the party from whom the info is sought

the process of resolving a dispute by presenting evidence and arguments before a neutral third party

Negotiated Settlements
Formal Complaints
Role of the Administrative Law Judge (ALJ)
Hearing Procedures
Agency Orders

Requires federal government to disclose records on request, but denial can be challenged in court
Courts have ordered a rational connection between the facts and the choice to deny

Requires that "every portion of every meeting of an agency" be open to "public observation"
Closed meetings authorized only in a limited number of instances

requires an analysis of the cost of a regulation will impose on small business and must consider less burdensome alternatives

allows Congress to review new federal regulations for at least 60 days before they can take effect

first federal legislation regulating food and drugs

Amended the Pure Food and Drug Act of 1906
Protects against adulterated and misbranded foods and drugs

created the consumer product safety commission (CPSC) with broad regulatory authority over the safety of consumer products

Patient protection and affordable health care act of 2010 (aka Obamacare)

Limits consumer liability for credit card debt in cases of lost or stolen cards to $50
Dispute resolution procedures must also be disclosed

A company may not retroactively increase the interest rates on existing card balances, unless the account is 60 days delinquent
A company must provide 45 days advance notice to consumers before changing the credit card terms
Monthly bills must be sent to cardholders 21 days before the due date
The interest rate charged on a customer's credit-card
A company may not charge over limit fees except in specified situations
If a customer has balances at different interest rates, payments, in excess of the minimum amount due must be applied first to the balance with the highest rate

Bona fide error is a defense against violations
Garnishment of Wages

Common Law Actions
Federal Regulations
State and Local Regulations

Nuisance
Negligence
Strict Liability

a developing area of tort law that involves an action against toxic polluters, such as those who use asbestos, radiation, or hazardous waste

Does not directly deal with pollution control
Requires preparation of an environmental impact statement (EIS) when major federal action in the environment is to be undertaken