Reference - Four Paws Protection

Reference - Four Paws Protection. Congress set up a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was passed naming the agency the "Animal Protection Commission," and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is true regarding the claim of Fluffy Shampoo that criminal penalties may not result from violation of agency rules?

A) Fluffy Shampoo is correct.
B) Fluffy Shampoo is incorrect, but any criminal penalties may not exceed a fine of $1,000.
C) Fluffy Shampoo is incorrect, but any criminal penalties may not exceed a fine of $10,000.
D) Fluffy Shampoo is incorrect regarding its claim that all agencies lack the authority to institute a criminal penalty, but correct in that the Animal Protection Commission cannot enforce a criminal penalty because an agency can only enforce a criminal penalty if human health or national security is involved.
E) Fluffy Shampoo is incorrect, and criminal penalties may be imposed assuming statutory authority exists for the agency to do so.