MGMT 311 Exam 2 - FLASHCARDS - Chapter 23

Question 1

What main power does an administrative agency have?

Answer 1

Enabling legislation

Question 2

True or false: administrative agencies exist across all areas of government?

Answer 2

TRUE

Question 3

What is enabling legislation?

Answer 3

specifies the name, purposes, functions, and powers of the agency being created.

Question 4

What is an example of enabling legislation?

Answer 4

Federal Trade Commission (FTC)

Question 5

What does the FTC act allow the Federal Trade Commision to do?

Answer 5

1. Create “rules and regulations for the purpose of carrying out the Act.”
2. Conduct investigations of business practices.
3. Obtain reports from interstate corporations concerning their business practices.
4. Investigate possible violations of federal antitrust statutes. (The FTC shares this task with the Antitrust Division of the U.S. Department of Justice.)
5. Publish findings of its investigations.
6. Recommend new legislation.
7. Hold trial-like hearings to resolve certain trade disputes that involve FTC regulations or federal antitrust laws.

Question 6

What agencies are formed to help the President carry out executive functions? They include the cabinet departments of the executive branch

Answer 6

Executive agencies

Question 7

What agencies are outside the major executive departments?

Answer 7

Independent regulatory agencies

Question 8

True or false: Congress enacts statutes, and sometimes statutes create administrative agencies to help carry out the rules in the statute?

Answer 8

TRUE

Question 9

True or false: the president’s power is less in independent regulatory agencies?

Answer 9

TRUE

Question 10

What are the three main powers of administrative agencies??

Answer 10

rulemaking, enforcement, and adjudication.

Question 11

What is the administrative process?

Answer 11

The procedure used by administrative agencies in fulfilling their three basic functions: 1. rulemaking, 2. enforcement, and 3. adjudication.

Question 12

What must happen prior to the adjudicatory hearing?

Answer 12

Prior to the hearing, the parties are permitted to undertake discovery, which may involve depositions, interrogatories, and requests for documents or other information. The discovery process usually is not quite as extensive as it would be in a court proceeding

Question 13

True or false: A hearing must comply with the procedural requirements of the APA and must also meet the constitutional standards of due process?

Answer 13

TRUE

Question 14

What is a difference between trials and administrative agency hearings?

Answer 14

Normally much more information, including hearsay (secondhand information), can be introduced as evidence during an administrative hearing

Question 15

What are executive controls of agencies?

Answer 15

The executive branch of government exercises control over agencies both through the president’s power to appoint federal officers and through the president’s veto power.

Question 16

What are legislative controls of agencies?

Answer 16

Congress gives power to an agency through enabling legislation and can take power away—or even abolish an agency altogether—through subsequent legislation. Congress has the authority to investigate the implementation of its laws and the agencies that it has created.

Question 17

What are judicial controls of agencies?

Answer 17

Judicial branch has the power to review decisions coming out of the administrative law courts from these agencies

Question 18

What is the exhaustion doctrine?

Answer 18

The principle that a complaining party normally must have exhausted all available administrative remedies before seeking judicial review.

Question 19

What is the Administrative Procedure Act (APA)?

Answer 19

Under this standard, parties can challenge regulations as contrary to law or as so irrational that they are arbitrary and capricious. Congress thought we needed to have more procedural controls

Question 20

What can an agency do that makes a rule arbitrary and capricious?

Answer 20

Failed to provide a rational explanation for its decision.

Changed its prior policy without justification.

Considered legally inappropriate factors.

Entirely failed to consider a relevant factor.

Rendered a decision plainly contrary to the evidence.

Question 21

What is the first part of the administrative process?

Answer 21

Rulemaking

Question 22

What is rulemaking?

Answer 22

The APA defines a “rule” as “an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law and policy.”. Rules made by agencies go through a notice and comment rulemaking process.

Question 23

What is an administrative rulemaking procedure that involves the publication of a notice of a proposed rulemaking in the Federal Register, a comment period for interested parties to express their views on the proposed rule, and the publication of the agency’s final rule in the Federal Register?

Answer 23

Notice and comment rulemaking?

Question 24

What is the notice of the proposed rulemaking?

Answer 24

The notice states where and when the proceedings will be held, the agency’s legal authority for making the rule (usually its enabling legislation), and the terms or subject matter of the rule. The agency must also make available to the public certain other information, such as the key scientific data underlying the proposal.

Question 25

Where is the notice of any proposed rule published?

Answer 25

Federal register

Question 26

What is the comment period of rulemaking?

Answer 26

You are given an opportunity to comment in writing or orally

Question 27

Where is the final rule republished?

Answer 27

In the code of federal regulations

Question 28

What do interpretive rules do?

Answer 28

interpretive rules simply declare policy and do not affect legal rights or obligations

Question 29

What do administrative inspections and tests cover?

Answer 29

cover a wide range of activities, including safety inspections of underground coal mines, safety tests of commercial equipment and automobiles, and environmental monitoring of factory emissions.

Question 30

What is a subpoena?

Answer 30

legal document that requires a person or entity to appear in court or other legal proceedings to testify or produce evidence. Subpoenas are typically requested by attorneys and issued by the court.

Question 31

What is subpoena ad testificandum?

Answer 31

The subpoena ad testificandum (“to testify”) is an ordinary subpoena. It is a writ, or order, compelling a witness to appear at an agency hearing.

Question 32

What is subpoena duces tecum?

Answer 32

The subpoena duces tecum (“bring it with you”) compels an individual or organization to hand over books, papers, records, or documents to the agency.

Question 33

What is adjudication?

Answer 33

The process of resolving a dispute by presenting evidence and arguments before a neutral third party decision maker in a court or an administrative law proceeding

Question 34

What are negotiated settlements?

Answer 34

Negotiations may involve a simple conversation or a series of informal conferences. Whatever form the negotiations take, their purpose is to rectify the problem to the agency’s satisfaction and eliminate the need for additional proceedings.

Question 35

What is a formal complaint?

Answer 35

If a settlement cannot be reached, the agency may issue a formal complaint against the suspected violator.

Question 36

What is the role of the administrative law judge (ALJ)?

Answer 36

An ALJ presides over the hearing and has the power to administer oaths, take testimony, rule on questions of evidence, and make determinations of fact

Question 37

Is the administrative law judge an independent judge?

Answer 37

No

Question 38

What does the APA require in regards to the ALJ?

Answer 38

The APA requires that the ALJ be separate from an agency’s investigative and prosecutorial staff. The APA also prohibits private communications between the ALJ and any party to an agency proceeding, including the agency and the company involved. Finally, provisions of the APA protect the ALJ from agency disciplinary actions unless the agency can show good cause for such an action.

Question 39

When is the ALJ's decision the final decision?

Answer 39

If no party appeals

Question 40

What is an initial order?

Answer 40

becomes final unless it is appealed. Either party can appeal the ALJ’s decision to the board or commission that governs the agency. If displeased with the result, the party can appeal that decision to a federal appellate court

Question 41

What is a final order?

Answer 41

If no party appeals the case, the ALJ’s decision becomes the final order of the agency. The ALJ’s decision also becomes final if a party appeals and the commission and the court decline to review the case.

Question 42

What might the court consider if an agency is demanding too much in pursuing information as part of an investigation?

Answer 42

The purpose of the investigation. An investigation must have a legitimate purpose. The relevance of the information being sought. The specificity of the demand for testimony or documents. The burden of the demand on the party from whom the information is sought.

Question 43

When is information relevant?

Answer 43

Information is relevant if it reveals that the law is being violated or if it assures the agency that the law is not being violated.

Question 44

What amendment protects against unreasonable searches and seizures by requiring that in most instances a physical search for evidence must be conducted under the authority of a search warrant?

Answer 44

Fourth amendment

Question 45

What is an order directing law enforcement officials to search a specific place for a specific item and seize it for the agency?

Answer 45

Search warrant

Question 46

Dion is head of the National Security Agency, a subagency of the Department of Defense. Dion has held the position for years and feels comfortable that he is secure in his position. However, after Dion holds a press conference where he directly contradicts a statement the president made, he receives a letter from the president removing him from his position. Dion objects to the firing, stating that he can only be removed from office “for good cause.” If Dion sues for being wrongfully removed from office, he will win because the president can only remove officers of executive federal agencies for good cause. win because Congress is the entity with the authority to remove officers of executive federal agencies. lose because only Congress can remove officers of executive federal agencies and only for good cause. lose because the president has the power to appoint and remove officers of executive federal agencies.

Answer 46

lose because the president has the power to appoint and remove officers of executive federal agencies.

Question 47

Roger has worked for an agency, the Federal Reserve, for 10 years. Recently, Roger has heard rumors that multiple employees have contracted COVID-19, a highly contagious and potentially dangerous disease, although they have recovered completely. Nevertheless, Roger is still concerned about being around these people, so Roger asks his employer, the Federal Reserve, for a list of these employees. The Federal Reserve refuses, so Roger files a Freedom of Information Act (FOIA) request for the information. Under the FOIA, will the Federal Reserve provide Roger this list? No, this information is confidential and personal. Yes, providing this information does not violate normal agency policies. Yes, Roger has a good reason for requesting this information. No, because as a current employee of an agency, the Federal Reserve, Roger cannot file a FOIA request with the Federal Reserve.

Answer 47

No, this information is confidential and personal.

Question 48

Rhea, a 45-year-old supervisor in a women’s retail clothing store, recently learned that a younger co-worker was promoted to a position she had applied for. Rhea has more experience and more time with the company and has always gotten excellent scores in her annual reviews. Rhea files an action with the Equal Employment Opportunity Commission (EEOC) for age discrimination. The Administrative Law Judge (ALJ) issues an order in favor of Rhea. This decision of the ALJ is the final order in the case unless the store appeals. only a temporary order unless either party appeals. only a temporary order; there will always be a different final order. the final order in the case unless Rhea appeals.

Answer 48

the final order in the case unless the store appeals.

Question 49

Harold is the owner of Fairway Lawn Service, which provides lawn-care services to residential and commercial customers. Harold regularly sprays his customers’ lawns with a pesticide that contains glyphosate. The Environmental Protection Agency (EPA) issues a citation to Harold for commercial use of the pesticide. The EPA says glyphosate can only be used in residential applications. Harold knows that this has not been the law in the past, so he searches the EPA website for information about glyphosate. Harold finds nothing that indicates glyphosate cannot be used in commercial applications, so Harold demands a hearing to dispute the citation he has been issued. Harold will probably win because Harold’s use of glyphosate would be grandfathered in. lose because as a commercial lawn care provider, Harold must stay abreast of current research on pesticides. lose because the EPA is not required to give notice before it changes environmental rules. win because the EPA did not give notice of the rule change regarding glyphosate.

Answer 49

win because the EPA did not give notice of the rule change regarding glyphosate.

Question 50

Phyllis has worked as a mechanic for Boeing Corporation for the last 10 years. Phyllis recently found out she is pregnant, so she requests a transfer to another position that does not require as much lifting. Boeing refuses to transfer Phyllis and fires her instead. Phyllis files a complaint with the EEOC for a violation of the Pregnancy Discrimination Act, and that agency, the EEOC, decides the case in Boeing’s favor. After exhausting all administrative remedies, Phyllis files a lawsuit in federal court, which will show no deference to the decision of the agency on either questions of law or fact; the court may substitute its judgment for that of the agency. show deference to the decision of the agency on questions of law only, upholding it unless the decision is unreasonable. show deference to the agency’s decision on both questions of law and fact, upholding the decision unless it is unreasonable. show deference to the decision of the agency on questions of fact only, upholding it unless the decision is unreasonable.

Answer 50

show deference to the agency’s decision on both questions of law and fact, upholding the decision unless it is unreasonable.