Chapter 44: government regulation in business (new) Flashcards
six general areas
- transportation
- utilities
- communications
- banking & finance
- consumer products
- general industries/professions
four major purposes of government regulation
- controlling monopoly power
- rationing scarce resources
- adjust bargaining power
- social regulation
administrative law
law pertaining to creation and procedures of administrative agencies
administrative agency
a unit of the execute branch created by a legislature fore the purpose of regulation in a specific area
executive agencies
agencies which are directly responsible to the chief executive where the heads of the agency may be removed for political reasons
independent agencies
agencies which are designed to be less subject to the chief executive headed by boards or commissions serving fixed terms, whose members may only be removed for cause
legislative powers
the power to make rules which are binding on the general public in a way similar to a statute
executive powers
the power to investigate, charge, and prosecute
subpoena power
judicial power
administrative law judges make decisions which may be accepted or overturned by the commission or board which heads agency
legislative restraints over administrative agencies
- enabling legislation
- appropriation
- contrary legislation
executive restraints over administrative agencies
- appointment/reappointment
- political influence
- direct control over executive agencies
judicial restraints over administrative agencies
- formal rule making/adjudication
- informal rule making/adjudication
- standards of review
judicial review
- questions of law: courts review de novo (from the beginning)
- questions of fact: substantial evidence test, rational basis test
