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Administrative agency
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An organization, usually a part of the executive branch of government, that is created to serve a specific purpose as authorized by the legislative branch
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Quasi-legislative
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This term describes the rule-making functions of administrative agencies
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Quasi-judicial
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Administrative actions involving factual determinations and the discretionary application of rules and regulations
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Reasons for Agencies
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- Specificity
- Expertise
- Protection
- Regulation
- Services
- Expertise
- Protection
- Regulation
- Services
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Functions of Agencies
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- Rule Making
- Adjudicating
- Advising
- Investigating
- Adjudicating
- Advising
- Investigating
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Rule Making
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Agencies exercise their quasi-legislative power by issuing rules and regulations that have the force and effect of law
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Guidelines
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Guidelines do not have the same force of law as rules and regulations do
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Adjudicating
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The quasi-judicial function involves both fact-finding and applying the law to the facts
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Cease and desist order
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The sanction that may be issued by an administrative agency to prevent a party from violating the law
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Consent order
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Any court or regulatory order to which the opposing party agrees; a contract of the parties entered upon the record with the approval and sanction of a court
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Consumer Financial Protection Bureau (CFPB) v. Paypal (2015)
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Complaint alleged that PayPal had signed customers up for its credit product without their permission
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Advising
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Making reports to the president or to Congress
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The FTC Funeral Rule
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The Funeral Rule, enforced by the Federal Trade Commission (FTC), allows you to compare prices among funeral homes, and makes it possible for you to select the funeral arrangements you want at the home you use.
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Investigating
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Investigate activities and practices that may be illegal
- Subpoena power to require reports
- Examine witnesses under oath
- Subpoena power to require reports
- Examine witnesses under oath
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SEC Investigates Robinhood
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Civil fraud investigation into Robinhood over failure to disclose its practice of selling clients' orders to high-speed trading firms
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Organization of Agencies
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- 5 to 7 members
- One is appointed as chair
- Appointments require senate confirmation
- Appointees are not permitted to engage in any other business or employment during their term
- One is appointed as chair
- Appointments require senate confirmation
- Appointees are not permitted to engage in any other business or employment during their term
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Chairperson
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Designated at the time of nomination by the president and is the presiding officer at agency meetings
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Secretary
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The person responsible for the minutes of agency meetings and is legal custodian of its records
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Executive Director
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The chief operating official of an agency and supervises usual administrative functions
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General Counsel
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An individual who is responsible for coordinating all law-related issues, such as the quasi-judicial hearings in administrative agencies
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Free Enterprise Fund v. PSAOB
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Limits the removal of board members
- The decision to remove is vested in the SEC
- Because the board members can not be removed except for cause
- The decision to remove is vested in the SEC
- Because the board members can not be removed except for cause
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Administrative law judge
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The individual employed by an administrative agency who is in charge of hearing the initial presentations in a quasi-judicial case
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Standing to Sue
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1. Reviewability
2. Aggrieved Party
2. Aggrieved Party
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Reviewability (Step 1 in Standing to Sue)
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Is the action or decision of the agency subject to judicial review?
- Does the statue preclude review?
- Is the agency action committed to agency to discretion by law?
- Does the statue preclude review?
- Is the agency action committed to agency to discretion by law?
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Aggrieved Party (Step 2 in Standing to Sue)
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Is the plaintiff "an aggrieved party"?
- Person suffered legal wrong because of agency action OR
- Adversely affected of aggrieved by agency action
- Person suffered legal wrong because of agency action OR
- Adversely affected of aggrieved by agency action
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Bennet v. Spear ESA
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Plaintiff's injury was fairly traceable to the biological opinion issued by the Fish and Wildlife Service that could be redressed by a favorable decision
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Review of Rule Making
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Is the delegation valid?
- Must be Definite and Limited
Has the agency exceeded it authority?
- Must be Definite and Limited
Has the agency exceeded it authority?
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FDA v. Brown & Williamson Tobacco
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Court ruled that FDA exceed authority by regulating tobacco
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Two doctrines guide courts in the judicial review of agency adjudications:
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1. Exhaustion of remedies
2. Primary Jurisdiction
2. Primary Jurisdiction
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Exhaustion of remedies
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A concept used in administrative law that requires any party to an administrative proceeding to give the administrative agency every opportunity to resolve the dispute before appealing to the court system
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Primary jurisdiction
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A doctrine used by reviewing courts to determine whether a case is properly before the courts or whether it should be heard by an administrative agency first since such an agency might have expertise superior to the courts
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Review of Factual Determinations
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When it reviews the findings of fact made by an administrative body, a court presumes them to be correct
A court of review examines the evidence by analyzing the record of the agency's proceedings. It upholds the agency's findings and conclusions on questions of fact if they are supported by substantial evidence in the record
A court of review examines the evidence by analyzing the record of the agency's proceedings. It upholds the agency's findings and conclusions on questions of fact if they are supported by substantial evidence in the record
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Criticism of Administrative Agencies
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- Adds to the cost of doing business
- Consumers pay both direct and indirect costs
- Burden of documentation
- Can cause businesses to become more and more bureaucratic
- Consumers pay both direct and indirect costs
- Burden of documentation
- Can cause businesses to become more and more bureaucratic