Legal Environment of Business Test Three

State

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

A comprehensive regulatory scheme

A law passed by a legislative body, such as Congress, to specify the name, purposes, functions, and powers of an administrative agency (creates an administrative agency)

Enabling statute

False

Federal Trade Commission (FTC)

1. Create "rules and regulations for the purpose of carrying out this act"
2. Conduct investigations of business practices
3. Obtain reports from interstate corporations concerning their business practices

1. Executive Agencies
2. Independent Regulatory Agencies

Executive

True

Bureaucracy

1. Rulemaking
2. Enforcement
3. Adjudication

Rules made by administrative agencies, which are as legally binding as laws passed by Congress or state legislatures; substantive rules

Rules issued by administrative agencies, which simply declare policy and do not affect legal rights or obligations

Power given to agencies from the "Necessary and Proper Clause" of Article 1, Section 8 of the U.S. Constitution, which authorizes delegating such powers to administrative agencies

The President's power to appoint federal officers and veto

Funding for the agency

True

A party seeking court review must first exhaust all administrative remedies before filing a lawsuit seeking court review

Court will not review an administrative decision until it is "ripe" for review

Administrative Procedure Act (APA)

Procedural requirements that all federal agencies must follow in their notice, rule making, adjudication, and enforcement functions

Provides for more judicial control over administrative agencies:
1. Did the agency fail to provide a rational explanation for its decision?
2. Did it change its prior policy without justification?
3. Did it consider legally inappropriate factors?
4. Did it entirely fail to consider a relevant factor?
5. Did the agency render a decision plainly contrary to the evidence?

The formulation of new regulations

The Federal Register

1. Notice of the proposed rule making
2. Comment period
3. Final rule

30 days

During the final rule stage

Code of Federal Regulations

Supreme Court held that courts should defer to an agency's interpretation of law, as well as fact

1. Did Congress directly address the issue in a statute?
2. If the statute was silent, was the agency's interpretation of the law "reasonable"?

Statutory language

After final rules are issues, agencies conduct investigations to monitor compliance with those rules or the terms of the enabling legislation

a) Conduct investigations and tests
b) Issue subpoenas
c) Conduct searches during site inspections
d) Issue search warrants

The process of resolving a dispute by presenting evidence and arguments before a neutral third party decision maker

To prevent unfair and deceptive trade practices

Advertising that may be interpreted as false or misleading

Must be if a reasonable consumer would be misled by the advertising claim

What would mislead a reasonable consumer to believe something is true when it is not

False

Body of written and unwritten laws governing the relations between and among nations and between nations and the citizens of one or more other sovereign nations

The need of each country to be the final authority over its own affairs

The system of laws that govern rights and obligations of persons within a particular country

1. Who will enforce the rights and obligations created by international law?
2. How will they enforce those rights and obligations?

Formal agreements between two or among several countries that each country's domestic government has authorized or ratified

Article II, Section 2

1. Common Law- recognize the precedential value of prior judicial decisions which provide binding authority

2. Civil Law- primarily based on statutory or "codified" law

3. Islamic- less prevalent; common in Islamic countries (mostly based on Sharia, which derives rules from the Quran)

One nation's deference and willingness to enforce the laws and judicial decrees of another country, as long as those laws and decrees are consistent with the fundamental laws and public policy of the deferring nation

Says that the courts of one country will not examine the validity of governmental acts committed by another country with the latter's territory

Government seizure of private property for public use with just compensation

Government seizure of private property without just compensation

The doctrine exempting a foreign nation from U.S. courts' jurisdiction

1. Export goods manufactured domestically
2. Manufacture goods there

The sale of goods directly to a foreign purchaser

False

The sale of goods abroad through some third party

An independent agency that, among other duties, investigates allegations that imported goods infringe on U.S. patents and imposes penalties, if necessary

Selling imports at less than their "fair market value"

World Trade Organization (WTO)

Yes

Judicial decisions