Business Law Chapter 6 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Like statutory law, administrative law is created by legislatures.
answer
False
question
Administrative agencies at various levels of government work together and share the responsibility of enforcing particular regulations.
answer
True
question
Business has little incentive to try to influence the regulatory environment through lobbying.
answer
False
question
Federal administrative agencies can exercise only those powers that a state legislature has delegated to them in enabling legislation.
answer
False
question
Legislative rules simply declare policy and do not affect legal rights or obligations.
answer
Flase
question
A party seeking court review of an administrative action must first exhaust all of his or her administrative remedies before seeking court review.
answer
True
question
An administrative rule may be arbitrary and capricious if the agency failed to provide a rational explanation for its decision.
answer
True
question
All federal agencies must follow specific procedural requirements when fulfilling their basic functions.
answer
True
question
Unlike statutes, administrative regulations do not have a binding effect.
answer
False
question
Anyone can submit comments on a proposed administrative rule.
answer
True
question
A party can be directly prosecuted for violating an administrative agency's interpretive rule or guidance document.
answer
False
question
When the meaning of a statute's language is unclear and an agency interprets it, a court need not follow the interpretation even if it is reasonable.
answer
False
question
Few agency rules require considerable compliance reporting from regulated entities.
answer
False
question
If a business firm refuses to comply with an agency's request to inspect facilities or business records, the agency must defer to the refusal.
answer
False
question
Warrants are required to conduct administrative searches in all highly regulated industries.
answer
False
question
Administrative agencies generally have no discretion over the type of hearing procedures that they use.
answer
False
question
There are no significant differences between a trial and an administrative hearing.
answer
False
question
All federal government agencies must make their records available electronically on the Internet and in other electronic formats.
answer
True
question
A federal administrative agency must alert small businesses—through advertising in trade journals, for example—about forthcoming regulations.
answer
True
question
Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses.
answer
True
question
Therapeutic Pharmaceutical Company is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of
answer
administrative law.
question
State and federal transportation agencies may issue regulations that conflict. When a state regulation conflicts with a federal regulation
answer
the federal regulation takes precedence.
question
Information Security Inc. pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
answer
Congress, through enabling legislation.
question
Persons who favor the creation of a federal biotech agency to regu¬late the production of genetically modified agricultural and animal products should con¬cen¬trate their lobbying ef¬forts on
answer
Congress
question
Congress enables the Environmental Protection Agency to regulate air and water pollution. This congressional act is
answer
a delegation of legislative power.
question
Grid Tools & Hardware Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Grid Tools wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
answer
the exhaustion doctrine.
question
The functions of the National Transportation Safety Board, like those of other federal adminis¬trative agencies, include
answer
adjudication.
question
Maxi Retail Corporation is subject to a decision by the National Labor Relations Board. Maxi Retail appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
answer
was plainly contrary to the evidence.
question
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. This process begins with
answer
the publication of a notice of proposed rule-making.
question
To notify the public of a proposed rule, the U.S. Office of Labor-Management Standards, like other federal agencies, publishes the proposal in
answer
the Code of Federal Regulations.
question
In reviewing the actions of the U.S. Bureau of Land Management and other federal agencies, the courts
answer
are usually reluctant to review questions of fact.
question
The U.S. Patent and Trademark Office (USPTO) wants to review certain records of Omni App Corporation. The USPTO can legitimately gain access to the records through
answer
Omni App's voluntary compliance.
question
Armando is a witness in a contro¬versy involving the U.S. Bureau of Tobacco and Firearms. Armando can be compelled to appear before an adminis¬trative law judge if he is served with
answer
a subpoena.
question
The U.S. Food Safety and Inspection Service conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
answer
highly regulated industries.
question
The U.S. Fish and Wildlife Service discovers that Grosse Farm Fisheries, Inc. has violated a federal regulation. If no negotiated settlement can be reached, the agency will most likely
answer
issue a formal complaint against Grosse Farm.
question
The Occupational Safety and Health Administration (OSHA) discovers that Petro Refinery, Inc., is violating an OSHAS regulation. If this situation is resolved like most such disputes, the outcome will be
answer
a negotiated settlement.
question
Personnel Employment, Inc., has been ordered to appear at a hearing be¬fore an administrative law judge of the Social Security Administration. A significant difference between a trial and an administrative hearing is that
answer
hearsay can be introduced as evidence in an administrative hearing.
question
The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except
answer
adjust the rule to the satisfaction of the regulated businesses.
question
A failure of the U.S. Drug Enforcement Administration to comply with a request under the Freedom of Information Act (FOIA) may be challenged in
answer
a federal district court.
question
Closed meetings of the National Security Agency and other federal administrative agencies are permitted when
answer
-the subject of the meeting concerns accusing a person of a crime. -open meetings would frustrate the implementation of future actions. -the subject of the meeting involves matters relating to future litigation or rule-making.