Deck 15: The Regulatory Process

Question 1

The general language used in delegating quasi-judicial authority usually involves grants of substantial discretion to an agency.

Answer 1

True
Explanation: The general language used in delegating quasi-legislative authority usually involves grants of substantial discretion to an agency. It must be kept in mind that this delegation of discretion is to the agency and not to the judiciary. Therefore, courts cannot interfere with the discretion given to the agency and cannot substitute their judgment for that of the agency.

Question 2

Appointees at the federal level in administrative agencies are not permitted to engage in any other business or employment during their terms.

Answer 2

True
Explanation: Appointments at the federal level in administrative agencies require Senate confirmation, and appointees are not permitted to engage in any other business or employment during their terms.

Question 3

The executive branch of government normally appoints the top officials of an agency with the advice and consent of the legislative branch.

Answer 3

True
Explanation: Each branch of government has some control over the administrative process. The executive branch normally appoints the top officials of an agency with the advice and consent of the legislative branch.

Question 4

Due process of law requires that before a rule or regulation may be adopted by an agency,interested parties must be given notice of the proposed rules and an opportunity to express their views on them.

Question 5

The procedures developed by administrative agencies are less formal than judicial procedures.

Question 6

Advisory opinions of an administrative agency are as binding as formal rulings.

Question 7

Congress uses more and more general language in stating its regulatory aims and purposes.

Question 8

A group of persons with standing to sue includes those who have noneconomic interests.

Question 9

In the context of delegation of quasi-legislative authority,courts can interfere with the discretion given to an agency and can substitute their judgment for that of the agency.

Question 10

Advisory councils consist of persons employed by an administrative agency just like the secretary and the executive director.

Question 11

The Consumer Product Safety Commission ensures all workers a safe and healthy work environment.

Question 12

The Environmental Protection Agency (EPA)regulates civil aviation to provide safe and efficient use of airspace.

Question 13

The Federal Administrative Procedure Act provides for judicial review where agency action is committed to agency discretion by law.

Question 14

In exercising their investigative functions,administrative agencies are excluded from using subpoena powers.

Question 15

Delegation of quasi-legislative authority must be definite and limited.

Question 16

When a firm is given monopoly power,it loses its freedom of contract,and a governmental body is given the power to determine the provisions of its contracts.

Question 17

The doctrine of "exhaustion of remedies" comes into play whenever enforcement of the claim requires the resolution of issues that,under a regulatory scheme,have been placed within the special competence of an administrative body.

Question 18

The courts will inquire into an agency's wisdom or effectiveness once the courts decide that an act of legislature is constitutional.

Question 19

The chairperson of an agency usually belongs to a different political party from that of the president to ensure fairness and equal distribution of power among staff members.

Question 20

To establish standing,the challenging party must address issues relating to the reviewability of a decision and the aggrieved party involved.

Question 21

At the federal level,administrative agencies are not required to publish guidelines and rules in their proposed and final versions.

Question 22

One of the functions of the administrative process is to decide issues expeditiously.

Question 23

For the courts to exercise their function of limited review,an agency must provide a record that sets forth the reasons and basis for its decision.

Question 24

According to the doctrine of the exhaustion of remedies,judicial review is available only for final actions by an agency.

Question 25

In the context of the doctrine of exhaustion of remedies,the courts do not allow parties to litigate prior to exhausting administrative remedies.

Question 26

Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices?

A) the Federal Trade Commission (FTC)
B) the Equal Employment Opportunity Commission (EEOC)
C) the Consumer Product Safety Commission (CPSC)
D) the National Labor Relations Board (NLRB)
E) the Federal Reserve Board (FRB)

Question 27

In the context of the doctrine of exhaustion of remedies,exhaustion should be required in those cases involving an area of the agency's expertise or specialization.

Question 28

Federal administrative agencies are required to work with the Small Business Administration's Office of Advocacy as it attempts to lessen the burdens of regulation on small businesses.

Question 29

In a(n)______ type of regulatory authority,an agency can make decisions like a court.

A) quasi-judicial
B) quasi-executive
C) in personam
D) quasi-regulatory
E) quasi in rem

Question 30

If substantial evidence in support of a decision is present,the court will review an administrative agency's findings once again.

Question 31

Which of the following is true of administrative agencies?

A) The actual regulatory activity is performed by administrative agencies.
B) Administrative agencies that issue rules having impact of laws are called quasi-judicial agencies.
C) State and local governments do not have administrative agencies.
D) Administrative agencies with quasi-executive authority make decisions like a court.
E) Administrative agencies license and regulate intrastate transportation.

Question 32

The primary focus of policymaking by way of social regulation has been on balancing the costs of regulatory programs with their potential benefits.

Question 33

A court of review examines the evidence by analyzing the record of an administrative agency's proceedings.

Question 34

Regulation decreases the cost of government.

Question 35

The doctrine of primary jurisdiction is invoked when referral to an agency is preferable because of its specialized knowledge or expertise in dealing with the matter in controversy.

Question 36

The doctrine of exhaustion of remedies permits the review of preliminary orders such as a decision to file a complaint.

Question 37

Substantial evidence is that which a reasonable mind might accept as adequate to support a conclusion.

Question 38

The doctrine of exhaustion of remedies creates a premature interruption in the administrative process.

Question 39

Which of the following type of regulatory authority issues rules that have the impact of laws?

A) in personam
B) quasi-executive
C) quasi-legislative
D) quasi-regulatory
E) quasi in rem

Question 40

Courts will hold that an agency exceeds its authority if an analysis of legislative intent confirms the view that the agency has gone beyond that intent,however noble its purpose may be.

Question 41

Which of the following statements is true of organization of agencies?

A) Administrative agencies or boards usually consist of 35 or 40 members to ensure transparency in their functioning.
B) Appointees at the federal level are permitted to engage in any other business or employment during their terms.
C) Appointees may be removed by the president for neglect of duty and inefficiency.
D) A simple majority of the members forming the body should belong to a different political party.
E) A secretary is vested with a power to remove an appointee for malfeasance in office.

Question 42

Which of the following federal agencies regulates the availability and cost of money and credit?

A) the Federal Communications Commission (FCC)
B) the Federal Trade Commission (FTC)
C) the Federal Reserve Board (FRB)
D) the Equal Employment Opportunity Commission (EEOC)
E) the Federal Energy Regulatory Commission (FERC)

Question 43

Business often fails to regulate itself,and the lack of self-regulation is contrary to the public interest.To counterbalance,administrative agencies exist to

A) refer the problem or area to experts for solution and management.
B) protect the public, especially from the business community.
C) replace competition with regulation.
D) develop detailed rules and regulations to carry out the legislative policy.
E) provide services that have arisen out of necessity.

Question 44

The mere existence of most government programs automatically creates a new agency or expands the functions of an existing one.These agencies are providing ______.

A) specificity
B) expertise
C) protection
D) regulation
E) services

Question 45

Which of the following statements is true of a consent order?

A) It is extremely expensive in comparison to other types of orders.
B) It is commonly known as a commission order.
C) It excludes organizations and nonprofit organizations in its scope.
D) It orders that a violator stop the objectionable activity and refrain from any further similar violations.
E) It requires that the accused individual admit to the jurisdiction of an agency and waive all rights to seek a judicial review.

Question 46

The ______ power of administrative agencies is primarily to decide on controversies.

A) executive
B) judicial
C) legislative
D) arbitrary
E) preliminary

Question 47

When administrative agencies exercise their quasi-legislative power by issuing guidelines that have the force and effect of law,they are ______.

A) adjudicating
B) advising
C) rule making
D) investigating
E) policy making

Question 48

The ______ power of administrative agencies is primarily to investigate,prosecute,advise,and supervise.

A) executive
B) judicial
C) legislative
D) arbitrary
E) preliminary

Question 49

Which of the following is an order that an agency imposes on a violator to stop an objectionable activity and refrain the violator from any further violations?

A) consent order
B) cease and desist order
C) preliminary order
D) commission order
E) assignment order

Question 50

The Securities and Exchange Commission (SEC)primarily functions as a(n)______ body,which oversees the issue and sale of investment securities.

A) rule-making
B) supervising
C) adjudicating
D) investigating
E) emergency

Question 51

The ______ function of an administrative agency involves both fact-finding and applying law to the facts.

A) adjudicating
B) advising
C) rule-making
D) investigating
E) policy making

Question 52

The protection administrative law judges receive from liability for damages based on their decisions is called ______.

A) immunity
B) specificity
C) amnesty
D) novation
E) adjudication

Question 53

Administrative agencies often provide needed continuity and consistency in the formulation,application,and enforcement of rules and regulations governing business.By doing so,these agencies are providing ______.

A) specificity
B) expertise
C) protection
D) regulation
E) services

Question 54

When a firm is given monopoly power,it loses its freedom of contract,and a governmental body is given the power to determine the provisions of its contracts.The government agency is providing ______.

A) specificity
B) expertise
C) protection
D) regulation
E) services

Question 55

Administrative agencies are needed to provide specificity to

A) refer a problem or area to experts for solution and management.
B) protect the public, especially from the business community.
C) replace competition with regulation.
D) develop detailed rules and regulations to carry out a legislative policy.
E) provide services that have risen out of necessity.

Question 56

Which of the following is true of the Environmental Protection Agency (EPA)?

A) It protects the public against unreasonable risks of injury associated with consumer products.
B) It ensures all workers a safe and healthy work environment.
C) It administers all laws relating to water pollution, air pollution, solid wastes, pesticides, and toxic substances.
D) It administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs.
E) It regulates civil aviation to provide safe and efficient use of airspace.

Question 57

The ______ function of an administrative agency may be accomplished by making reports to the president or to Congress.

A) investigating
B) adjudicating
C) advisory
D) rule-making
E) prosecuting

Question 58

Which of the following federal agencies conducts union certification elections and holds hearings on unfair labor practice complaints?

A) the National Labor Relations Board (NLRB)
B) the Equal Employment Opportunity Commission (EEOC)
C) the Occupational Safety and Health Administration (OSHA)
D) the Federal Reserve Board (FRB)
E) the American Federation of Labor and Congress of Industrial Organizations

Question 59

Which of the following statements is true of the functionality of agencies providing services?

A) Social Security programs necessitate that there be a federal agency to determine eligibility and pay benefits.
B) The mere existence of most government programs hardly creates any new agency or expands the functions of an existing one.
C) Welfare programs are run easily without being administered by the government.
D) Government agencies often stand as a substitution for competition.
E) Agencies that function to provide services are created out of sheer manpower rather than necessity.

Question 60

The Federal Reserve Board (FRB)found that Parson Inc.,a newly established financial company,had violated banking laws.The company was involved in transactions that were prohibited by the United States government.Along with imposing a hefty fine,the FRB issued an order on Parson to stop the nature of such objectionable transactions and ordered the firm to refrain from indulging in such transactions in the future.This order is an example of a(n)______.

A) consent order
B) cease and desist order
C) preliminary order
D) commission order
E) assignment order

Question 61

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

A) They lack immunity for the damages arising from their decisions.
B) They use prior decisions or precedent.
C) They refrain from performing any fact-finding functions.
D) They refrain from hearing cases of alleged law violations.
E) They have the option of either following procedural rules of the agency or its policy directives.

Question 62

Which of the following statements is true of a secretary in an administrative agency?

A) A secretary is responsible for the minutes of agency meetings and is legal custodian of its records.
B) A secretary is designated as such at the time of nomination by the president.
C) A secretary is the presiding officer at agency meetings.
D) A secretary is not responsible for agency functions such as signing orders and official correspondence.
E) A secretary is the chief operating official of an agency and supervises usual administrative functions such as accounting.

Question 63

Which of the following functions allows an agency to gather and compile information concerning the organization and business practices of any corporation or industry engaged in commerce to determine whether there has been a violation of any law?

A) adjudicating
B) advising
C) rule making
D) investigating
E) policy making

Question 64

Which of the following doctrines applies when a claim is originally filed in the courts?

A) estoppel
B) the doctrine of exhaustion of remedies
C) the doctrine of lapse
D) primary jurisdiction
E) the doctrine of precedent

Question 65

Which of the following is true about an advisory council?

A) It is more important than other agency members because of visibility and the power to appoint staff.
B) It coordinates the activities of an agency with others involved in the regulatory process.
C) It makes the decision to file suit or pursue other remedies.
D) It supervises usual administrative functions such as accounting, budgeting, and personnel.
E) It provides for interaction between regulators and those being regulated.

Question 66

As the member of an agency,a secretary

A) signs orders and official correspondence.
B) is the presiding officer at agency meetings.
C) makes the decision to file suit or pursue other remedies.
D) supervises usual administrative functions.
E) provides for interaction between regulators and those being regulated.

Question 67

The ______ has significant impact on policy and is often as powerful as a commissioner or board member.

A) secretary
B) advisory council
C) general counsel
D) chairperson
E) executive director

Question 68

Which of the following statements is true of the legislature in influencing decisions in an administrative agency?

A) It has the power to limit appropriation of funds to the agency.
B) It cannot abolish an administrative activity.
C) It is beyond its scope to advise and amend procedural requirements for the agency's adjudications.
D) It has very little control over the administrative process of an agency.
E) It takes decisions independently, without any consultation with the executive branch.

Question 69

The doctrine of ______ is a court-created rule that limits when courts can review administrative decisions.

A) estoppel
B) exhaustion of remedies
C) lapse
D) primary jurisdiction
E) precedent

Question 70

Which of the following statements is true of factors influencing agency decisions?

A) It is ideal that a rule or a regulation be adopted without having to follow the due process of law.
B) Agencies are predominantly politically responsible for their decisions.
C) At public hearings, interested parties are allowed to present evidence in support of, or in opposition to, a proposed rule or regulation.
D) An ineffective means of influencing a quasi-legislative decision of an administrative agency is to participate in the adoption process as such participation is time-consuming and expensive.
E) The advantage of the administrative agencies is that it is free from any control from any branch of the government.

Question 71

Which of the following members of an agency requires Senate approval while being appointed?

A) secretary
B) advisory council
C) general counsel
D) chairperson
E) executive director

Question 72

Any party seeking the judicial review of any administrative agency's decision must be able to prove:

A) enabling legislation.
B) immunity.
C) standing to sue.
D) novation.
E) primary jurisdiction.

Question 73

Which of the following statements is true of the review of rule making?

A) The rule-making function in the administrative process is essentially executive in character.
B) Before a court can find a proposal void, an administrative agency must propose rules within the confines of its grant of power from the legislature.
C) A court will inquire into its wisdom or effectiveness even after deciding that an act of the legislature or the action of an agency is authorized.
D) Political action at polls is excluded from correcting an unwise or an ineffectual law.
E) The scope of the legislature makes it impossible for it to correct an unwise regulation made by an agency in cases where the legislature was responsible for granting the agency such power.

Question 74

Which of the following statements is true of the executive director in an administrative agency?

A) The executive director is the chief operating official of an agency and supervises usual administrative functions.
B) The executive director is responsible for the minutes of agency meetings.
C) The executive director is the legal custodian of the records of any meetings.
D) The executive director is responsible for publication of all actions in the Federal Register.
E) The executive director is the chief law officer and legal adviser.

Question 75

Administrative law judges are

A) organizationally separate from the rest of the agency.
B) responsible for the minutes of agency meetings and are legal custodians of its records.
C) exempt from the protection of immunity.
D) excluded from hearing cases of alleged law violations.
E) intermediaries between regulators and those being regulated.

Question 76

A(n)______ is designated as such at the time of nomination by the president and is the presiding officer at agency meetings.

A) secretary
B) advisory council
C) general counsel
D) chairperson
E) executive director

Question 77

Which of the following is a unique agency device generally not available in the judicial system,as courts deal only with actual cases and controversies?

A) limited cross examination
B) advisory opinion
C) formal ruling
D) investigative power
E) subpoena power

Question 78

The ______ is the chief law officer and legal adviser.

A) secretary
B) general counsel
C) chairperson
D) executive director
E) chief judge

Question 79

Which of the following statements is true of reviewability of an administrative agency's decision?

A) Reviewability of an administrative agency's decision is mandatory as all such decisions are reviewable.
B) The action of the agency is irrelevant in determining the reviewability of an administrative agency's decision.
C) The Federal Administrative Procedure Act excludes judicial review of decisions where the statutes preclude judicial review.
D) The Federal Administrative Procedure Act permits reviewability except in cases where agency action is committed to agency discretion by law.
E) Reviewability of an administrative agency's decision is necessary as preclusion of judicial review by inference is very common.

Question 80

Which of the following statements is true of the executive branch of a government?

A) It has no control over the administrative process of an agency.
B) It normally appoints the top officials of an agency with the advice and consent of the legislative branch.
C) It is denied veto power over the statues of the legislatures.
D) It is excluded from making any budget recommendations to the legislative branch.
E) It enacts and creates specific legislations adopted by administrative agencies.