Business Law Chapter 6 – Flashcards

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Like statutory law, administrative law is created by legislatures.
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False
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Administrative agencies at various levels of government work together and share the responsibility of enforcing particular regulations.
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True
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Business has little incentive to try to influence the regulatory environment through lobbying.
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False
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Federal administrative agencies can exercise only those powers that a state legislature has delegated to them in enabling legislation.
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False
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Legislative rules simply declare policy and do not affect legal rights or obligations.
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Flase
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A party seeking court review of an administrative action must first exhaust all of his or her administrative remedies before seeking court review.
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True
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An administrative rule may be arbitrary and capricious if the agency failed to provide a rational explanation for its decision.
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True
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All federal agencies must follow specific procedural requirements when fulfilling their basic functions.
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True
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Unlike statutes, administrative regulations do not have a binding effect.
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False
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Anyone can submit comments on a proposed administrative rule.
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True
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A party can be directly prosecuted for violating an administrative agency's interpretive rule or guidance document.
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False
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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.
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False
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Few agency rules require considerable compliance reporting from regulated entities.
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False
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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.
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False
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Warrants are required to conduct administrative searches in all highly regulated industries.
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False
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Administrative agencies generally have no discretion over the type of hearing procedures that they use.
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False
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There are no significant differences between a trial and an administrative hearing.
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False
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All federal government agencies must make their records available electronically on the Internet and in other electronic formats.
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True
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A federal administrative agency must alert small businesses—through advertising in trade journals, for example—about forthcoming regulations.
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True
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Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses.
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True
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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
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administrative law.
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State and federal transportation agencies may issue regulations that conflict. When a state regulation conflicts with a federal regulation
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the federal regulation takes precedence.
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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
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Congress, through enabling legislation.
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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
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Congress
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Congress enables the Environmental Protection Agency to regulate air and water pollution. This congressional act is
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a delegation of legislative power.
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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
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the exhaustion doctrine.
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The functions of the National Transportation Safety Board, like those of other federal adminis¬trative agencies, include
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adjudication.
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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
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was plainly contrary to the evidence.
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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
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the publication of a notice of proposed rule-making.
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To notify the public of a proposed rule, the U.S. Office of Labor-Management Standards, like other federal agencies, publishes the proposal in
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the Code of Federal Regulations.
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In reviewing the actions of the U.S. Bureau of Land Management and other federal agencies, the courts
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are usually reluctant to review questions of fact.
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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
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Omni App's voluntary compliance.
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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
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a subpoena.
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The U.S. Food Safety and Inspection Service conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
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highly regulated industries.
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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
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issue a formal complaint against Grosse Farm.
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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
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a negotiated settlement.
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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
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hearsay can be introduced as evidence in an administrative hearing.
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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
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adjust the rule to the satisfaction of the regulated businesses.
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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
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a federal district court.
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Closed meetings of the National Security Agency and other federal administrative agencies are permitted when
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-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.
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