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Business People
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Administrative agencies are important to who?
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State, Federal, Local levels
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Bureaucracy on what levels?
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Enabling Act
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What are administrative agencies created by?
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Time and Money
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Most _____ and _____ for business is dealt with administrative agencies
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Federal
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Congress at the ____ level creates the administrative agencies
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enabling act
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The law that creates the administrative agencies is called the
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Purpose, authority
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The enabling act determines the ______ of the agency and _____ of the agency
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Legislative Branch
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What creates the enabling act?
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Executive
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Administrative agencies are a subcategory of the _________ branch.
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-Protection
-Necessity
-Regulation/Equalization of Competition among Businesses
-Delegate Legislative and Judicial Functions
-Expertise in Developing Area of Law
-Necessity
-Regulation/Equalization of Competition among Businesses
-Delegate Legislative and Judicial Functions
-Expertise in Developing Area of Law
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Why are administrative agencies created?
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-To protect consumers from big bad business
-EX: big bad business can put defective products, work environment unsafe, ect.
-Left unregulated ---> business cause all kinds of bad business
-EX: big bad business can put defective products, work environment unsafe, ect.
-Left unregulated ---> business cause all kinds of bad business
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Protection (Reason Administrative Agency was created)
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- Out of necessity, they create agencies
- EX: Post office
- EX: Post office
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Necessity (Reason Administrate Agency was created)
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- What keeps utilities from rising prices?
- No competition ---> agencies are brought in to equalize competition among businesses
-Regulate price increases
- Regulate it so that there is no competition
- If agencies regulate that means they regulate the price
- EX: PUCO regulates prices
- No competition ---> agencies are brought in to equalize competition among businesses
-Regulate price increases
- Regulate it so that there is no competition
- If agencies regulate that means they regulate the price
- EX: PUCO regulates prices
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Regulation/Equalization of Competition Among Business (Reason Administrative Agency was created)
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- Quasi-Legislative
- Quasi-Judicial
- Quasi-Judicial
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Delegate Legislative and Judicial Functions (Reason Administrative Agency was created)
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- NOT legislative body, but they act like it
- Delegated to them from Congress at the Federal level
- Agencies pass rules / regulations
- Rules / regulations have force / effect of law
- EX: Taxes ; created IRS ---> delegated taxes to them ---> it would take Congress forever to regulate just taxes ---> so we delegate to the agency IRS
-The law will be better written by experts (NOT by Congress)
- IRS only deals with taxes because they are experts developing this area of law
- Delegated to them from Congress at the Federal level
- Agencies pass rules / regulations
- Rules / regulations have force / effect of law
- EX: Taxes ; created IRS ---> delegated taxes to them ---> it would take Congress forever to regulate just taxes ---> so we delegate to the agency IRS
-The law will be better written by experts (NOT by Congress)
- IRS only deals with taxes because they are experts developing this area of law
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Quasi-Legislative Function
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- Delegate the judicial function
- NOT part of the judicial branch, but they act like it
- Have administrative agency hearing ---> dispute resolution process
- Plaintiff = Agency ; Defendant = Business or Consumer
- No juries ; judge is the finder of fact and applier of the law
- Courts are too congested --> created the quasi-judicial function
- We will have better law because these people are experts on this law to apply
- Decisions of every administrative agency becomes precedent
- Every Administrative agency follows the Doctrine of Precedent
- NOT part of the judicial branch, but they act like it
- Have administrative agency hearing ---> dispute resolution process
- Plaintiff = Agency ; Defendant = Business or Consumer
- No juries ; judge is the finder of fact and applier of the law
- Courts are too congested --> created the quasi-judicial function
- We will have better law because these people are experts on this law to apply
- Decisions of every administrative agency becomes precedent
- Every Administrative agency follows the Doctrine of Precedent
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Quasi-Judicial Function
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experts
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The quasi-legislative and quasi-judicial functions are ______ in developing an area of law.
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- 7th Amendment tells us when in civil case we are entitled to a jury
- Cases at Common Law
- Administrative agency do not exist at Common Law
- They are creatures of legislative so no juries
- Cases at Common Law
- Administrative agency do not exist at Common Law
- They are creatures of legislative so no juries
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Why is there no jury at the quasi-judicial public hearings?
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Enabling Act
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What creates an administrative agency?
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- You can not be a doctor on TV when you are not a doctor in real life
- Deceptive selling
- Campbell's Soup ---> claims it is heart healthy ---> not really.
- A consumer can notify the FTC
- Competitors tell the FTC to bring them down
- Deceptive selling
- Campbell's Soup ---> claims it is heart healthy ---> not really.
- A consumer can notify the FTC
- Competitors tell the FTC to bring them down
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The FTC (Federal Trade Commission) purpose is to prevent unfair methods of competition in commerce. It policies anit-competitive practices.
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1. Quasi-Legislative
2. Quasi-Judicial
3.Advising
4.Investigatory
2. Quasi-Judicial
3.Advising
4.Investigatory
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There are 4 functions of Agencies
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- You have to follow them ; can be shut down if you don't
- Agency has to propose rule / regulation before finalizing it
- Have to give the public a chance to comment
- Effects your industry? Can write in public comment
- Session lasts 90 days; agency can finalize proposal or they will "table" it (take it off), or revise it
- They have to get public comments
- Public hearings
- Cost/Benefit Analysis ....Are the agencies required to do this?
- Can challenge final proposal in court as unconstitutional
- Agency has to propose rule / regulation before finalizing it
- Have to give the public a chance to comment
- Effects your industry? Can write in public comment
- Session lasts 90 days; agency can finalize proposal or they will "table" it (take it off), or revise it
- They have to get public comments
- Public hearings
- Cost/Benefit Analysis ....Are the agencies required to do this?
- Can challenge final proposal in court as unconstitutional
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Rules / Regulations
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- Are the agencies required to do this?
- EX: Seat belts. ---> went to Supreme Court
- Auto industry would have to remake all cars with seat belts...this is expensive. The expensive cost does not equal the amount of lives that will be saved in the future. Agency used statistics that seat belts are a must
- They can put rules / regulations in without the cost-benefit analysis
-Is there too much regulation?
- Should we deregulate?
- This is an economic discussion
- EX: Seat belts. ---> went to Supreme Court
- Auto industry would have to remake all cars with seat belts...this is expensive. The expensive cost does not equal the amount of lives that will be saved in the future. Agency used statistics that seat belts are a must
- They can put rules / regulations in without the cost-benefit analysis
-Is there too much regulation?
- Should we deregulate?
- This is an economic discussion
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Cost-Benefit Analysis
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- Do not have the force/effect of law
- The guidelines are explanatory
- The guidelines are explanatory
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Administrative agency can have guideline. Guidelines -
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Executive
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The Quasi-Judicial function is a part of the ______ branch, but it acts like it is a part of the judicial branch because they have the dispute regulation process. (Administrative Agency hearings)
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Procedural
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Each agency has their own ________ laws.
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- Follows the Doctrine of Precedent
- Does not matter what type of remedy you are seeking
- Has one burden of proof = Preponderance of Evidence Standard
- Does not matter what type of remedy you are seeking
- Has one burden of proof = Preponderance of Evidence Standard
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Each agency:
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- Fines
- Make you stop action
- Bad company ad ---> they will make you run a correct ad
- Remember : agencies create their own remedies and rules
- Make you stop action
- Bad company ad ---> they will make you run a correct ad
- Remember : agencies create their own remedies and rules
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What are some of the remedies at Administrative agency hearings if lost?
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- 2/3 of the time the judge will go with the administrative agency
- Justices give great discretion to the agency because they are the experts
- Better have good case if you appeal
- Justices give great discretion to the agency because they are the experts
- Better have good case if you appeal
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What is the likely hood of a business winning at the appellate court level?
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- Exhaustion of Remedies Doctrine:
-Give the agency 1st chance to correct own errors
- IRS has 9 levels of appeal
-This is a procedure within the agency
-Give the agency 1st chance to correct own errors
- IRS has 9 levels of appeal
-This is a procedure within the agency
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Before you can appeal administrative agency hearing:
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- Out of court settlement in civil case
- Administrative agency has to offer it to you
- You are not entitled
- If you agree, you submit the dispute to jurisdiction of the agency, you will not go to court, you will just never do it again in the future and you do not have to pay price if done in the past.
- Allows too many true violators to get off free
- "consent orders"
- "consent decree"
- Administrative agency has to offer it to you
- You are not entitled
- If you agree, you submit the dispute to jurisdiction of the agency, you will not go to court, you will just never do it again in the future and you do not have to pay price if done in the past.
- Allows too many true violators to get off free
- "consent orders"
- "consent decree"
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Extensive use of correct orders:
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delegate
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The administrative agency is created to __________ tasks.
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Exhaust all levels of remedies first
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Before you appeal you need to ________
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-Advising Function
-Investigatory Function
-Investigatory Function
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What functions are a part of the executive branch?
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-Advise president, Congress, the people (us)
-EX: IRS ; don't know how to file taxes, seek advisory help from the IRS
-Only legally binding on people seeking advice
-Same power as executive branch
-EX: IRS ; don't know how to file taxes, seek advisory help from the IRS
-Only legally binding on people seeking advice
-Same power as executive branch
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Advising Function
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-Go to different sites to see if you are complying with the rules and regulations
-Collect evidence
-They invest
-Same power as executive branch
-Collect evidence
-They invest
-Same power as executive branch
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Investigatory Function
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Entity
-So, where are the checks and balances?
-Violate the horizontal separation?
-So, where are the checks and balances?
-Violate the horizontal separation?
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The 3 branches of government are in one ______
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-We have functions of all 3 branches of government
-Does not violate Doctrine of Separation of Powers
-Does not violate Doctrine of Separation of Powers
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Inside the agency:
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-The 3 branches of government exercise control externally on how they exert over the administrative agencies
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The 3 branches of government are external to the agencies.
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- Outside the administrative agency is the 3 branches of government that keep the 3 branches that are internal in check
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Inside the administrative agencies is the 3 branches of government and
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Enabling
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The legislative branch created agencies through the _____________ Act.
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- Can abolish the agency if not doing the right thing
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"Power of the Purse"
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-the federal government
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Under the "power of the purse," the agency gets money from ________
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- Congress , Legislative Branch , determines how much money they get
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Who determines how much money the agency gets?
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- YES
- Greatly influences what direction agency goes
- Greatly influences what direction agency goes
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Can Congress cut the budget if they do not like what the agency is doing?
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- Set policy of agency
- Are appointed by president
- The president can remove from office and replace them (executive branch)
- Are appointed by president
- The president can remove from office and replace them (executive branch)
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Board Members (5-7)
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3 branches of government outside.
- This is checks and balances
- Not Unconstitutional
- This is checks and balances
- Not Unconstitutional
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Internal to the agency, they exhibit the ______
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Pages 555-559
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Organizational Structure of Administrative Agencies
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Chair people, commissioners, board members
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Who is at the top of an agency?
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-The president with advice and consent of the Senate
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Who appoints the people who are at the top of an agency?
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- 4-8 years
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How long are the people typically at the top?
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- Full-Time
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Are the employees at the top of the agency full-time or part-time?
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-They set the policy
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What do the people at the top of the agency do?
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- Yes
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Can the president remove the person who is at the top of an agency?
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- While serving, the person cannot hold a position in the industry they are regulating
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What is a conflict of interest regarding the top position of an agency?
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- Cannot all be of same political party
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Can the people at the top of the administrative agency all be the same political party?
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- Revolving Door Syndrome
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What is a criticism of the agency?
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- Where do they go after their term? They go back to industry they specialize in/regulate
~this is a criticism
- Pick people at the top because of expertise in the industry
~this is a criticism
- Pick people at the top because of expertise in the industry
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Revolving Door Syndrome
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- Chairperson
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What is the head of the commission called?
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- Has equal vote with out board members
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Chairperson
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- Advisory Counsel
- Secretary
- Secretary
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Level (2) below the top is
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- Out of industry that is regulated
- Advise commissioners what is happening in industry
- Not full time employees
- Tells board what working in industry and what is not
- Advise commissioners what is happening in industry
- Not full time employees
- Tells board what working in industry and what is not
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Advisory Counsel
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- The Advisory Counsel
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Every position is full-time except
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Federal Register
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Everyone in the government reports to
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- In charge of the records
- Report everything that happens
- Meetings, hearings
- Public record
- Report everything that happens
- Meetings, hearings
- Public record
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Secretary
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- Information is published to the public
- Record is published daily
- Record is published daily
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Federal Register
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- General Counsel
- Director of Operations
- Executive Director for Administration
- Administrative Law Judges
- Director of Operations
- Executive Director for Administration
- Administrative Law Judges
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3rd level down from the top is
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- Chief law officer
- Represent the agency
- Make decision whether to settle a case or appeal
- Represent the agency
- Make decision whether to settle a case or appeal
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General Counsel
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- Bureau
- Advise Congress, President, individuals
- Investigators
- Internal operations
- Deals with non-compliance
- Advise Congress, President, individuals
- Investigators
- Internal operations
- Deals with non-compliance
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Director of Operations
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- Payroll
-Budgeting
-Personnel
- Promotion
- Hiring / Firing
- Internal Operations
- Like HR...
-Budgeting
-Personnel
- Promotion
- Hiring / Firing
- Internal Operations
- Like HR...
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Executive Director for Administrations
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- Not biased
- Not involved in policy making
- Not involved in policy making
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Administrative Law Judges
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Immunity
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Administrative Agencies have
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- Cannot be held personally liable for professional actions even if actions are unconstitutional
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immunity
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- Administrative Law Judges
- Everyone else has limited / qualified immunity
- Everyone else has limited / qualified immunity
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The only employees that have absolute immunity are
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- Cannot be help personally liable unless what you did was unconstitutional
- Harm is unconditional = held liable
- Harm is unconditional = held liable
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Limited / Qualified Immunity
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- Too many rules / regulations
- Cost a lot of money to comply
- Way rules / regulations written, a person cannot understand them
- You have to hire someone to help you interrupt the rules and regulations
- Lawyer, accountant
- Rules are so complex so they are difficult to follow and understand
- Too much paper work
- Administrative Agency takes too long to respond
- Adds to cost of doing business and it forces people to take business overseas
- Too much use of consent orders
- Revolving door Syndrome
- Cost a lot of money to comply
- Way rules / regulations written, a person cannot understand them
- You have to hire someone to help you interrupt the rules and regulations
- Lawyer, accountant
- Rules are so complex so they are difficult to follow and understand
- Too much paper work
- Administrative Agency takes too long to respond
- Adds to cost of doing business and it forces people to take business overseas
- Too much use of consent orders
- Revolving door Syndrome
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Criticisms of Administrative Agencies