CH 6 Test 1

Question 1

administrative agency

Answer 1

government body charged with administering and implementing legislation.

Question 2

administrative law

Answer 2

law governing administrative agencies.

Question 3

Administrative Procedure Act

Answer 3

federal law that establishes the operating rules for administrative agencies.

Question 4

cease-and-desist order

Answer 4

order issued by a court or administrative agency to stop a practice that it decides is improper.

Question 5

consent decrees

Answer 5

informal settlements of enforcement actions brought by agencies.

Question 6

exhaustion-of-administrative remedies

Answer 6

requirement that an agency make its final decision before the parties can go to court.

Question 7

Federal Register Act

Answer 7

federal law requiring agencies to make public disclosure of proposed rules, passed rules, and activities.

Question 8

Federal Register

Answer 8

government publication issued five days a week that lists all administrative regulations, all presidential proclamations and executive orders, and other documents and classes of documents that the president or Congress direct to be published.

Question 9

Freedom of Information Act

Answer 9

federal law permitting citizens to request documents and records from administrative agencies.

Question 10

informal settlements

Answer 10

negotiated disposition of a matter before an administrative agency, generally without public sanctions.

Question 11

open meeting law

Answer 11

law that requires advance notice of agency meeting and public access.

Question 12

TRUE/FALSE

An administrative agency is a governmental body charged with administering and implementing legislation.

Answer 12

TRUE

Question 13

TRUE/FALSE

Administrative agencies may make the rules, police the community to see the rules are obeyed, and sit in judgment to determine violations of their rules.

Answer 13

TRUE

Question 14

TRUE/FALSE

Because administrative agencies have broad powers, they are subject to strict procedural rules as well as disclosure requirements.

Answer 14

TRUE

Question 15

TRUE/FALSE

The modern administrative agency typically possesses legislative, executive, and judicial powers.

Answer 15

TRUE

Question 16

TRUE/FALSE

The Freedom of Information Act provides access to any information upon request.

Answer 16

FALSE

Question 17

TRUE/FALSE

The public has access to the activity of administrative agencies in three ways: (1) open records, (2) open meetings, and (3) public announcement of agency guidelines

Answer 17

TRUE

Question 18

TRUE/FALSE

The Administrative Procedure Act is a federal law that establishes the operating rules for administrative agencies.

Answer 18

TRUE

Question 19

TRUE/FALSE

The Sunshine Act requires most meetings of major administrative agencies to be open to the public.

Answer 19

TRUE

Question 20

TRUE/FALSE

In an emergency, an administrative agency can act beyond the scope of the statute that created it.

Answer 20

FALSE

Question 21

TRUE/FALSE

Until proven valid, a rule adopted by an administrative agency is considered invalid by the courts.

Answer 21

FALSE

Question 22

TRUE/FALSE

The authority of an agency is limited to the technology in existence at the time the agency was created.

Answer 22

FALSE

Question 23

TRUE/FALSE

Modern administrators cannot make laws, but they can argue persuasively before Congress for the passage of needed legislation.

Answer 23

FALSE

Question 24

TRUE/FALSE

Administrative agencies never allow members of the industry that is to be regulated to participate in rule-making deliberations.

Answer 24

FALSE

Question 25

TRUE/FALSE

A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at which members of the public may express their views and make suggestions.

Answer 25

TRUE

Question 26

TRUE/FALSE

Regulations properly adopted by agencies are important, but they do not have the full force of law as do statutes.

Answer 26

FALSE

Question 27

TRUE/FALSE

The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis.

Answer 27

FALSE

Question 28

TRUE/FALSE

An administrative agency has the power to investigate, to require persons to appear as witnesses, to require witnesses to produce relevant papers and records, and to bring proceedings against those who violate the law.

Answer 28

TRUE

Question 29

TRUE/FALSE

Agency investigations of possible violations of agency rules are handled through independent enforcement agencies.

Answer 29

FALSE

Question 30

TRUE/FALSE

Administrative agencies are not subject to the constitutional protections afforded individuals and businesses.

Answer 30

FALSE

Question 31

TRUE/FALSE

An administrative agency is barred from examining the records of a business enterprise by the constitutional guarantee against unreasonable searches and seizures.

Answer 31

FALSE

Question 32

TRUE/FALSE

Within the area in which the administrative agency is authorized to make decisions, the agency can be regarded as a specialized court or court of limited jurisdiction.

Answer 32

TRUE

Question 33

TRUE/FALSE

An administrative agency cannot hold a hearing without a jury.

Answer 33

FALSE

Question 34

TRUE/FALSE

In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action.

Answer 34

TRUE

Question 35

TRUE/FALSE

An agency hearing is generally not subject to the rules of evidence

Answer 35

TRUE

Question 36

TRUE/FALSE

A consent decree is an informal settlement of an enforcement action brought by an administrative agency

Answer 36

TRUE

Question 37

TRUE/FALSE

Before an appeal can be taken to a court concerning a determination of an agency, all administrative remedies must be exhausted.

Answer 37

TRUE

Question 38

TRUE/FALSE

A court will not reverse an agency’s decision merely because the court would have made a different decision based on the same facts.

Answer 38

TRUE

Question 39

TRUE/FALSE

Decisions made by agencies are more likely to be reversed than to be accepted by the court on appeal.

Answer 39

FALSE

Question 40

TRUE/FALSE

As Courts now tend to accept an agency’s reasonable interpretation of a statute involving a technical matter, even though it was not the only interpretation that could have been made.

Answer 40

TRUE

Question 41

TRUE/FALSE

An administrative agency whose erroneous decision causes a regulated person or enterprise substantial loss is liable for such loss regardless of whether the agency acted in good faith.

Answer 41

FALSE

Question 42

The most recent addition to the American governmental structure is the:

a. executive branch.
b. administrative agency.
c. judicial branch.
d. legislative branch.

Answer 42

b. administrative agency.

Question 43

An administrative agency can be created to perform:

a. only one of the three functions of government (executive, legislative, or judicial).
b. any two of the three functions of government.
c. all three of the functions of government.
d. none of the three functions of government.

Answer 43

c. all three of the functions of government.

Question 44

Members of administrative agencies are ordinarily

a. pre-selected.
b. elected.
c. assigned.
d. appointed.

Answer 44

d. appointed

Question 45

Generally, which power(s) does (do) an administrative agency possess?

a. all powers necessary to effectively perform the duties entrusted to it
b. legislative only
c. judicial only
d. executive only

Answer 45

a. all powers necessary to effectively perform the duties entrusted to it

Question 46

The Freedom of Information Act:
a. is to be strictly construed to prevent unauthorized disclosures.

b. has too many exemptions to be useful.
c. is intended to subject agency action to public scrutiny.
d. puts the burden of proof upon the person requesting the information.

Answer 46

c. is intended to subject agency action to public scrutiny.

Question 47

Meetings are to be open to the public under:

a. the Administrative Protection Act.
b. the Sunshine Act.
c. the Freedom of Information Act.
d. none of the above.

Answer 47

b. the Sunshine Act.

Question 48

An administrative regulation:

a. is a guideline that may be voluntarily followed.
b. has the force of law.
c. is a suggestion of what will protect the environment.
d. is a standard used to guide an industry at the industry’s discretion.

Answer 48

b. has the force of law.

Question 49

When it comes to administrative agencies, courts:

a. regard agencies as able to perform their duties effectively.
b. accept rules that have been established by agencies using a rational basis.
c. do not substitute their own judgment in agency decisions.
d. all of the above.

Answer 49

d. all of the above.

Question 50

Before an agency can begin rulemaking proceedings it must be given jurisdiction:

a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. none of the above.

Answer 50

a. by congressional enactment in the form of a statute.

Question 51

The “public comment” period for proposed administrative agency rules must be at least __________ days.

a. 30
b. 60
c. 90
d. 120

Answer 51

a. 30

Question 52

Proposed administrative regulations must be:

a. printed in the Federal Register.
b. published in the trade journals of those trades that will be affected by the proposed rules.
c. both a. and b.
d. none of the above.

Answer 52

c. both a. and b.

Question 53

Which of the following is part of an administrative agency’s power to investigate?

a. an investigation to determine whether additional administrative rules need to be adopted
b. an investigation to ascertain facts with respect to a particular suspected or alleged violation
c. an investigation to determine whether the defendant in a proceeding before the agency is complying with its final order
d. all of the above

Answer 53

d. all of the above

Question 54

Concerning administrative investigations:

a. agencies are severely limited by the constitutional protection against unreasonable searches and seizures.
b. a search warrant is always required to search premises.
c. papers and records generally may be subpoenaed by an agency.
d. a person does not have constitutional protection against unreasonable searches and seizures.

Answer 54

c. papers and records generally may be subpoenaed by an agency.

Question 55

The United States constitution places the most significant limitations on administrative investigation in the area of:

a. search and seizure of the person.
b. aerial inspection.
c. search and seizure of papers and records.
d. guarantee against self-incrimination.

Answer 55

a. search and seizure of the person.

Question 56

A subpoena to testify or to produce records:

a. is prohibited by the constitutional guarantee against unreasonable searches and seizures.
b. is an illegal attempt to gain information by compulsion.
c. cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure.
d. must be approved by corporate officers to be effective.

Answer 56

cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure.

Question 57

An administrative agency:

a. is not empowered to act as a court with regard to its own regulations.
b. acts as a specialized court of limited jurisdiction.
c. can hear complaints only in the presence of a jury.
d. cannot impose penalties for violation of its regulations.

Answer 57

b. acts as a specialized court of limited jurisdiction.

Question 58

Which statement is true concerning administrative hearings?

a. The findings are turned over to a court of law for the final decision.
b. Denial of a jury trial is a denial of due process.
c. It is generally necessary to give notice of an administrative hearing and to allow affected persons to be present.
d. Traditional courtroom rules of evidence must be applied.

Answer 58

c. It is generally necessary to give notice of an administrative hearing and to allow affected persons to be present.

Question 59

Which of the following is beyond the enforcement power of an agency?

a. requiring proof of compliance with agency regulations
b. issuing a cease-and-desist order
c. convicting of criminal violations
d. imposing civil penalties

Answer 59

c. convicting of criminal violations

Question 60

A significant difference between an administrative agency hearing and a court hearing is that:

a. a binding decision can only be made by an agency.
b. there is no right of trial by jury before an agency.
c. a court hearing allows no public intervention.
d. a court can enforce its decision.

Answer 60

b. there is no right of trial by jury before an agency.

Question 61

A(n) __________ is a negotiated disposition of a matter before an administrative agency, generally without public sanctions.

a. formal settlement
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict

Answer 61

b. informal settlement

Question 62

The term “exhaustion of administrative remedies” means that:

a. parties to an agency action must be diligent in pursuing their case.
b. parties to an administrative action must take their appeal to a court of law.
c. parties to an administrative action can appeal only after the agency has made a final decision.
d. administrative agencies tend to work very hard.

Answer 62

c. parties to an administrative action can appeal only after the agency has made a final decision.

Question 63

Which of the following is true about judicial review of agency action?

a. Judges tend to substitute their own judgment for that of the agency.
b. Courts will reverse agency decisions merely because the court would have made a different decision based on the same facts.
c. Courts will reverse a decision if they disagree with the legal interpretation.
d. All of the above

Answer 63

c. Courts will reverse a decision if they disagree with the legal interpretation.

Question 64

Under modern law, when the issue that an agency decides is a question of law based on a technical statute:

a. the court on appeal will reverse the agency’s decision if the court disagrees with the decision.
b. the court will not accept the agency’s decision unless the agency’s interpretation is the only one that could have been made.
c. the court will tend to accept the agency’s interpretation of the law as long as it is reasonable.
d. the court will not reverse the agency’s decision.

Answer 64

c. the court will tend to accept the agency’s interpretation of the law as long as it is reasonable.

Question 65

In reviewing agency action, courts generally apply the:

a. “beyond a reasonable doubt” standard.
b. “preponderance of the evidence” standard.
c. “arbitrary and capricious” standard.
d. “rational relationship” standard.

Answer 65

c. “arbitrary and capricious” standard.

Question 66

If an agency causes a substantial loss to a business by enforcement of its laws, that business:

a. always can hold the agency liable for damages.
b. never can hold the agency liable for damages.
c. may seek damages if the agency acted in bad faith.
d. may seek damages if the agency complied with its own guidelines.

Answer 66

c. may seek damages if the agency acted in bad faith.

Question 67

CASE

The Federal Trade Commission suspects Billy Williams of unlawful trade activities and has obtained evidence, claimed to be proof of unlawful activity, by way of aerial photography. The FTC is also currently seeking the submission of various documents, within Williams’ place of business, for additional evidence. Williams refuses to submit to the demands to produce the documents and claims that this demand and the aerial photos are direct violations of his constitutional rights. Williams also demands a jury trial to clear him of charges levied. Comment on Williams’ claims.

Answer 67

An agency has the power to execute the law and to bring proceedings against violators. This may be accomplished with no significant constitutional limitations on how the agency is to conduct its investigation of infractions. A search warrant is never required for subject matter observed from a public place; therefore, aerial photography of Williams’ place of business can be used by the FTC as proof of wrongdoing. The FTC may also demand the production of relevant papers and documents by Williams, since the constitutional guarantee against unreasonable searches and seizures does not afford much protection with regard to papers and records being investigated by an agency. Lastly, Williams has no right to a jury trial in an administrative hearing.

Question 68

CASE

Arthur sustained an injury to his back. Arthur claimed the injury was suffered at work and filed a claim for workers’ compensation benefits. The employer opposed this claim, saying the injury, if real, was the result of a congenital condition. In accordance with the statute, a hearing was held before the Workers’ Compensation Board, which ruled against Arthur. Arthur became disgusted with the hearing officer and the proceedings because Arthur felt that the hearing officer did not like him. Arthur has consulted an attorney seeking to sue for workers’ compensation benefits. An appeal is available within the agency, but Arthur wants to go directly to court because he feels that the agency appeal would be useless. Discuss the merits of this strategy.

Answer 68

Arthur cannot bring a lawsuit to overturn the findings of the Worker’s Compensation Board, since Arthur has failed to exhaust his available administrative remedies. The lawsuit would be unsuccessful and would not be heard by the courts.

Question 69

CASE

Wilma was an employee of the Electric Storage Battery Company. She was fired. She claimed that she was fired because she was a member of a labor union. The employer asserted that she was fired because she was a poor worker. Wilma filed an unfair labor practice complaint with the National Labor Relations Board. Its examiner held a hearing at which evidence was presented showing that Wilma was a poor worker. Other evidence presented showed that the employer was opposed to labor unions. The Board decided to believe Wilma’s witnesses and concluded that she had been fired because she belonged to the union. Can the employer appeal this decision?

Answer 69

Yes. The employer has the right to appeal the decision. This right is conferred by statute. On the facts as stated, however, the employer will lose the appeal because the decision turns upon the decision of which witnesses to believe. If the witnesses on behalf of the employee are believed, there was an unfair labor practice. When the administrative agency selects one set of witnesses to believe, a court hearing an appeal will not reverse the conclusion of the agency. The court will only examine the case to see if there was a substantial basis for the agency’s findings of fact. There was evidence on both sides which, if believed, would be sufficient to justify a conclusion in favor of each side. The court will not go further to see if it would have agreed with what the agency believed. That is, the court will not substitute its own opinion when a case turns upon the credibility of witnesses who testified before the agency.