Deck 18: The Law of Administrative Agencies

Question 1

Which of the following refers to the power delegated by Congress to an administrative agency to make rules that must be adhered to by individuals and businesses regulated by the agency?

A)fiduciary power
B)executive power
C)legislative power
D)judicial power

Answer 1

C

Question 2

Which of the following is required of an agency under informal rulemaking?

A)filing the notice of proposed rulemaking in an appellate court
B)providing an opportunity for all interested parties to submit written comments to the agency
C)scheduling a hearing at which experts give their opinions on a rule proposed by the agency
D)appointing a counsel for persons unable to afford representation at the formal hearing

Answer 2

B

Question 3

Which of the following rulemaking models is most often used by administrative agencies because it is efficient in terms of time and cost?

A)formal rulemaking
B)informal rulemaking
C)hybrid rulemaking
D)independent rulemaking

Answer 3

B

Question 4

A rule that creates, defines, or regulates the legal rights of administrative agencies and the parties they regulate is called a(n) ________.

A)substantive rule
B)procedural rule
C)internal law
D)executive law

Question 5

Which of the following is a difference between independent administrative agencies and executive administrative agencies?

A)Independent administrative agencies are created by private stockholders, whereas executive administrative agencies are created by the legislative branch of government.
B)The heads of independent administrative agencies cannot be removed by the president, whereas the heads of executive administrative agencies can be removed by the president.
C)Independent administrative agencies are headed by people with prior experience in private enterprises, whereas executive administrative agencies are headed by a board of commissioners.
D)The heads and members of the board have no fixed term of office in independent administrative agencies, whereas the heads and members are appointed for a specific term of years in executive administrative agencies.

Question 6

Which of the following refers to the power delegated by Congress to an administrative agency to adjudicate cases through an administrative proceeding?

A)executive power
B)fiduciary power
C)legislative power
D)judicial power

Question 7

Which of the following laws establishes the standards and procedures federal administrative agencies must follow in their rulemaking and adjudicative functions?

A)Federal Procedure Act
B)Administrative Procedure Act
C)Congressional Review Act
D)Small Business Regulatory Enforcement Fairness Act

Question 8

A formal rulemaking by an administrative agency is appropriate when ________.

A)an agency's enabling legislation or other congressional directives do not require another form
B)an agency's enabling legislation states that all rules must be enacted by the agency as part of a formal hearing process that includes a complete transcript
C)an agency's enabling legislation or other congressional directives state that the agency must promulgate regulations
D)an agency's enabling legislation provides an opportunity for all interested parties to submit written comments

Question 9

Which of the following is true of a substantive rule?

A)It has an impact on the internal processes by which an agency functions.
B)It defines the rights of parties involved in an agency hearing.
C)It prescribes methods of enforcing rights.
D)It controls the method by which jurisdiction is balanced between federal and state agencies.

Question 10

The procedure for formal rulemaking provides for ________.

A)an agency notice of proposed rulemaking to the public in the Federal Register
B)an opportunity for all interested parties to submit written comments to the agency
C)a hearing at which experts give their opinions on a rule proposed by the agency
D)the appointment of counsel for persons unable to afford representation at the formal hearing

Question 11

An agency whose appointed heads and members serve for fixed terms and cannot be removed by the president except for reasons defined by Congress is called a(n) ________.

A)independent administrative agency
B)executive administrative agency
C)congressional administrative agency
D)permanent administrative agency

Question 12

Informal rulemaking under the Administrative Procedure Act is appropriate when ________.

A)an agency's enabling legislation or other congressional directives do not require another form
B)an agency's enabling legislation states that all rules must be enacted by the agency as part of a formal hearing process that includes a complete transcript
C)an agency's enabling legislation or other congressional directives do not state that the agency must promulgate regulations
D)an agency's enabling legislation does not allow the submission of written comments by parties

Question 13

Which of the following is an example of a procedural rule in operation?

A)a Social Security recipient being entitled to receive a check for a large amount
B)a Medicare recipient contacting a member of Congress to complain about the confusing health care system in the United States
C)the Internal Revenue Service giving notice to all parties involved in an agency hearing
D)the U.S. Department of Health and Human Services referring a client to a state agency better suited to handle his or her problem

Question 14

Which of the following is true of administrative agencies?

A)An enabling statute delegates congressional executive powers to them for the purpose of serving the public interest.
B)An enabling statute delegates legislative powers to them in order to settle or adjudicate disputes with businesses.
C)All their proposed rules, whether major or minor, are subject to the review of the Office of Management and Budget.
D)They have to identify possible alternatives to a proposed regulation that would require no government action.

Question 15

A rule that governs the internal processes of an administrative agency is called a(n) ________.

A)substantive rule
B)internal law
C)procedural rule
D)executive law

Question 16

An administrative agency ________.

A)does not have the judicial power to adjudicate individual cases
B)does not have the executive power to investigate corporate misconduct
C)includes public utilities commissions and building authorities at the state level
D)is situated wholly in the legislative branch of government

Question 17

Which of the following is a reason for the growth of administrative agencies?

A)Administrative agency hearings are governed by strict rules of evidence.
B)The staff of each of the agencies has technical expertise in a wide range of areas.
C)Administrative agency hearings reduce the burden on the state and federal court systems.
D)Administrative agencies promote deregulation in all industries.

Question 18

Any rule that affects, directly or indirectly, agencies such as the Environmental Protection Agency or the Federal Trade Commission is called a(n) ________.

A)executive law
B)administrative law
C)governing law
D)presidential law

Question 19

Which of the following refers to the power delegated by Congress to an administrative agency to investigate whether the rules enacted by the agency have been properly followed by businesses and individuals?

A)executive power
B)fiduciary power
C)legislative power
D)judicial power

Question 20

Statutes that allow Congress to create federal administrative agencies are called ________.

A)enabling legislation
B)substantive rules
C)procedural rules
D)ex post facto laws

Question 21

Which of the following is true of hybrid rulemaking?

A)It allows agencies to adopt regulations without inputs from the public.
B)It allows agencies to set a period for public comments and to hold a public hearing.
C)It balances the needs of federal agencies with the needs of state agencies whose jurisdictions overlap.
D)It allows agencies to adopt regulations without having to publish these regulations in the Federal Register.

Question 22

The Federal Tort Claims Act of 1946 requires the federal government to ________.

A)file legal actions against corporations violating strict liability torts
B)waive sovereign immunity for the tortious acts of its employees in certain cases
C)measure the cost that a proposed rule would impose on a business
D)hold every portion of a business meeting open to public attendance

Question 23

Which of the following best summarizes the provisions of the Federal Register Act of 1933?

A)It mandates the publication of all notices of federal agency meetings, proposed regulations, and final regulations in the Federal Register.
B)It requires that corporations be registered with the Secretary of State in the state of their incorporation.
C)It requires each agency headed by a collegiate body to hold every portion of a business meeting open to public attendance.
D)It requires that patents and trademarks be registered in the Federal Register with the U.S. Patent Office.

Question 24

Which of the following is the first step pursued by an administrative agency in carrying out its adjudicative function in individual cases?

A)The agency against whom the complaint is made submits themselves to a hearing and decision by the administrative law judge.
B)The agency files a complaint against the party with an administrative law judge (ALJ).
C)The agency notifies the party against whom the complaint is made and conducts an investigation into the merits of the complaint.
D)The agency negotiates with the party against whom the complaint is made to see if it can get the party to voluntarily stop the violation.

Question 25

Which of the following statements is true about the role of an administrative law judge (ALJ) during a hearing?

A)An ALJ is required to remain silent during a hearing.
B)An ALJ can intervene during a hearing to ask questions.
C)An ALJ can only take note of the evidence that both parties have introduced.
D)An ALJ must submit questions to the involved parties in writing in advance of the hearing.

Question 26

The Government in Sunshine Act of 1976 requires each agency headed by a collegiate body to ________.

A)publish an annual summary of all adjudicatory decisions of the previous year
B)publish a summary of proposed procedural rules
C)hold every portion of a business meeting open to public attendance
D)hold every portion of a business meeting behind closed doors

Question 27

Which of the following statements is true about administrative law judges?

A)They can serve for a period of up to 10 years.
B)They usually come from within the federal administrative bureaucracy.
C)They are appointed by the U.S. Supreme Court.
D)They are appointed by governors in the respective states and confirmed by the Senate.

Question 28

A consent order is ________.

A)an agreement on the part of a company to accept a particular administrative action or remedy imposed by an agency, after having admitted guilt
B)a court order issued by a federal district court requiring that a business cease to engage in a particular behavior
C)an agreement by a business to stop an activity an administrative agency alleges to be unlawful and to accept the remedy the agency imposes, without having to accept guilt
D)a court order issued by a federal appellate court ordering a federal district court to supervise an administrative agency's behavior

Question 29

Which of the following is true about the review of an adjudicative proceeding by a federal court?

A)The court will review both the legal and factual findings of the agency, even if the findings are supported by substantial evidence in the record.
B)The court will review the factual findings but not the legal findings, unless the legal findings are supported by substantial evidence in the record.
C)The court will not review the factual findings as long as they are supported by substantial evidence in the record.
D)The court will conduct its own hearing and will not concern itself with the agency's legal or factual findings.

Question 30

Julio Esteban is a U.S. citizen whose grandparents had immigrated to the U.S. during World War II. Last month, Julio travelled to Egypt on business. On his return to the U.S., he was detained at the airport on suspicion of being an illegal immigrant. Though he showed all the relevant documents proving his U.S. citizenship to the U.S. Immigration and Customs enforcement officials, he was held in a federal immigration detention center for two days before his lawyer got him out. In this scenario, Julio can sue the U.S. Immigration and Customs enforcement agency under the ________.

A)Federal Register Act of 1933
B)Federal Privacy Act of 1974
C)Federal Tort Claims Act of 1946
D)Freedom of Information Act of 1966

Question 31

Which of the following acts was involved in allowing decision-making processes of administrative agencies to be open to the public?

A)Federal Register Act of 1933
B)Government in Sunshine Act of 1976
C)Federal Tort Claims Act of 1946
D)Congressional Review Act of 1996

Question 32

Which of the following is true of an adjudicative proceeding?

A)A hearing before an administrative law judge does not take more than three months to be resolved.
B)The evidence pertaining to a case is presented by the staff of the commission and not by the accused party.
C)There is a jury of thirteen members at a hearing.
D)It is less adversarial and more investigative, or inquisitorial, than a court proceeding.

Question 33

Which of the following is the final step in an informal rulemaking process?

A)Proposed rules are published in the Federal Register.
B)Interested parties file written comments on the written draft within a 30-day period from publication in the Federal Register.
C)Agency receives feedback from interested parties during a stipulated period of time and makes a decision on whether the final draft should be rewritten.
D)Final draft of a rule is published in the Federal Register 30 days before it takes effect.

Question 34

Which of the following best defines a preponderance of the evidence?

A)It is a legal standard which transfers the right to adjudicate to a Supreme Court judge.
B)It is a legal standard that places the burden of proving the facts of the case on one party.
C)It is a legal standard whereby the evidence is in favor of one party.
D)It is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.

Question 35

Which of the following is the first step in an informal rulemaking process?

A)Proposed rules are published in the Federal Register.
B)Interested parties file written comments on the written draft within a 30-day period from publication in the Federal Register.
C)Agency drafts rules in consultation with interested parties.
D)Agency receives feedback from interested parties and makes a decision on whether the final draft should be rewritten.

Question 36

In order to carry out its adjudicative function in individual cases, an administrative agency is subject to guidelines stipulated by ________.

A)the administrative law judge hearing the case
B)a special committee set up by Congress and headed by the U.S. Secretary of State
C)the Federal Tort Claims Act
D)a case law arising out of appeals of agency decisions to the U.S. Supreme Court

Question 37

How can a consent order benefit a company that has been found guilty of violating an administrative law by an administrative agency?

A)It avoids an admission of guilt.
B)It can pay the cost of litigation over a period of five years.
C)It can obtain a binding cease-and-desist order against the administrative agency.
D)It avoids having to agree to anything in writing.

Question 38

Which of the following laws states that a regulation cannot take effect until at least 60 working days have passed since the regulation was promulgated?

A)Federal Register Act of 1933
B)Government in Sunshine Act of 1976
C)Federal Tort Claims Act of 1946
D)Congressional Review Act of 1996

Question 39

A federal circuit court of appeals that has jurisdiction in a case reviews the commission's legal findings to ensure that ________.

A)it acted within the scope of the Government in Sunshine Act
B)it acted in a constitutionally approved way
C)the administrative law judge actually read the submitted exhibits
D)the losing party accepts the administrative law judge's initial decision

Question 40

The Department of Homeland Security (DHS) of the U.S. government promulgates a rule that allows its officials to search a private or commercial property at any time without its owner's permission and without an administrative search warrant. This rule is in violation of ________.

A)the First Amendment
B)the Second Amendment
C)the Third Amendment
D)the Fourth Amendment

Question 41

The authority of administrative agencies is limited by the legislative branch through the power of ________.

A)Congress to terminate an agency
B)Congress to appoint administrative law judges
C)the president to remove the heads of the agencies
D)the Office of Management and Budget to recommend a fiscal-year budget for each agency

Question 42

A substantive rule generally has an impact on the internal processes by which administrative agencies function or prescribes methods of enforcing rights.

Question 43

The power of administrative agencies is limited by the executive branch through ________.

A)the oversight power of the Congress
B)investigative powers of the Congress
C)presidential executive orders
D)the power of the president to remove the heads of the agencies

Question 44

Which of the following is a self-avowed goal of the Financial Services Authority (FSA)?

A)to maintain confidence in the global financial system
B)to promote the government's understanding of the financial system
C)to help reduce financial crime
D)to secure the right degree of protection for administrative agencies

Question 45

Which of the following statutes contains the Code of Federal Regulations (CFR)?

A)The Government in Sunshine Act
B)The Federal Privacy Act
C)The Federal Register Act
D)The Freedom of Information Act

Question 46

Since the Office of Management and Budget recommends annual budgets to Congress for each administrative agency, it has influence over all rulemaking.

Question 47

Administrative agencies such as real estate planning boards, zoning commissions, and supervisory boards operate on the ________ level.

A)state
B)federal
C)international
D)city and county

Question 48

An administrative agency can issue rules that carry civil penalties but not criminal penalties.

Question 49

The greatest legislative limitation on agency power lies in ________.

A)Congress's power to investigate all claims made against an agency or its officials
B)Congress's power of oversight over agencies to ensure that they have carried out their mandated functions
C)Congress's ability to limit the authority of administrative agencies
D)Congress's right to approve or disapprove an agency budget submitted by the executive branch

Question 50

Which of the following statements is true of the Financial Services Authority (FSA) of the United Kingdom?

A)It is a governmental body whose board of directors is appointed by the president.
B)It oversees transactions and demands ethical and legal conduct from firms.
C)It utilizes government funding that must be approved by the British Parliament.
D)It has to coordinate with other governmental bodies to regulate trading exchanges.

Question 51

In 1995, the House of Representatives and the Senate overwhelmingly passed a bill that required all administrative agencies to do a cost-benefit analysis of any proposed regulation that would cost the economy less than $25 million.

Question 52

Agencies that regulate state-chartered banks, worker's compensation, state universities, and state taxes are assigned duties by the ________.

A)administrative law judges of the state
B)state legislature
C)judicial branch of the government
D)president and Congress

Question 53

Which of the following is true of Executive Order 12291?

A)It provides adjudicatory hearings to respondents who apply for such hearings.
B)It extends the powers of the Office of Management and Budget so that it now has authority over "pre-rulemaking action" by executive agencies.
C)It requires executive agencies to perform a cost-benefit analysis of regulations before promulgating a major federal regulation.
D)It requires executive agencies to use informal, instead of formal, hearings for most regulatory proceedings.

Question 54

Formal rulemaking is the model most often used by administrative agencies because it is efficient in terms of time and cost.

Question 55

Public notice and comment are not required when an administrative agency is making interpretive rules or general statements of policy.

Question 56

The Securities and Exchange Commission was intended to be a "watchdog" agency that would ensure full disclosure of material information to the investing public.

Question 57

Both the formal and informal rulemaking processes require an agency to give notice of a proposed rulemaking to the public in the Federal Register.

Question 58

Which of the following statements is true of state and local administrative agencies?

A)When federal and state agency laws conflict, the Supremacy Clause of Article VI of the U.S. Constitution plays a decisive role.
B)State and local administrative agencies have been created by only 25 states of the U.S.
C)Real estate planning boards, zoning commissions, and supervisory boards operate at the state level.
D)Agencies that regulate state-chartered banks are assigned duties by Congress, but governed by the state legislature.

Question 59

Administrative agencies are generally classified as independent or executive.

Question 60

A commissioner of an independent administrative agency can be removed before serving out a full term at the whim of the president.

Question 61

The power of administrative agencies is limited by the executive branch through the power of the president to appoint the heads of the agencies.

Question 62

Explain how the power of administrative agencies is limited by the executive branch of the government.

Question 63

The National Labor Relations Board (NLRB) is informed that Verdure Industries, a candle manufacturer, is violating a few labor laws of the U.S. What steps should the NLRB take in this case?

Question 64

Preponderance of the evidence is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.

Question 65

In the United States, banks are regulated by the Financial Services Authority (FSA).

Question 66

A party can appeal an administrative law judge's decision to the full commission or agency head and ultimately to a federal court of appeals and the U.S. Supreme Court.

Question 67

Agencies are exempted from holding open hearings when proceedings concern military matters or foreign affairs.

Question 68

Explain the three major rulemaking models-formal, informal, and hybrid-outlined in the Administrative Procedure Act (APA) of 1946.

Question 69

How does a judicial review of an administrative agency action provide a check against agency excesses?

Question 70

A recommended decision of an administrative law judge becomes the final action for an agency if an appeal is taken to the full commission by either the staff or the respondent.

Question 71

Under a consent order, a company has to admit that it is deceptive.

Question 72

Embryl Consultancy, a brokerage firm, advertises that it will double its customers' money in five years. However, it fails to do so. Some of the customers file a complaint with the Federal Trade Commission (FTC). The commission's staff finds that the advertising is "deceptive" or "unfair" within the meaning of Section 5 of the Federal Trade Commission Act. How will the FTC seek to stop the advertising campaign? What is the benefit of this method?

Question 73

Agency heads and commissions are required to defer to an administrative law judge's factual findings.

Question 74

The Congressional Review Act of 1996 requires each agency to make available for copying on request such items as staff manuals, staff instruction orders, and adjudicated opinions, as well as interpretations of policy statements.

Question 75

Explain the reasons for the rapid growth of administrative agencies in the U.S.

Question 76

List the administrative activities, in addition to rulemaking and adjudication, that are performed by executive and independent agencies.

Question 77

Administrative law judges are appointed by the president.