Exam 4

Question 1

Know where regulatory agencies get their rulemaking powers from

Answer 1

Answer: Regulatory agencies get their power from Congress. Congress delegates authority to them.

(From Book)
Congress has the authority under the commerce clause and the necessary and proper clause in the Constitution to create agencies and give them powers to enact rules.

Question 2

Know what the Taylor v. Huerta case said about agency actions that go beyond their authority from their enabling legislation. (Also, explain the context of the case.)

Answer 2

ANSWER - The court held that the FAA went beyond its authority

Dummy summary - The FAA was given authority to manage not create rules, they created a rule against drones, Taylor challenged it and the appellate court said they weren’t allowed to create rules thus they over stepped their authority.

Case Background -
The Federal Aviation Administration (FAA) Modernization and Reform Act was passed in 2012. It directs the FAA to “Promote safe flight of civil aircraft” and to set operating standards for aircraft operation in the United States. Basically saying it requires “Aircraft” to be registered with the FAA before operating. The statute states, in Section 336, that the FAA “MAY NOT PROMULGATE ANY RULE OR REGULATION REGARDING MODE AIRCRAFT.”
+ In 2015, the FAA issued the registration rule regarding model aircraft. This includes small drones used for recreation. Taylor petitioned the FAA, contending it did not have statutory authority to issue the Registration Rule that requires him to register his drone. The FAA rejected so he appealed

Question 3

Know the definition of agency procedural rules

Answer 3

“Under the Administrative Procedure Act or other legislation, the process that an administrative agency must follow for its actions to be valid.”

Question 4

Know the two (First and Second) ways agencies enforce regulations.

Answer 4

1. Direct examination ( They go observe the businesses themselves)
2. They can make businesses monitor their own behavior (aka) (self-report)

Question 5

Can Corporations use the 5th Amendment protection against self-incrimination when being required to self-report to an administrative agency

Answer 5

Corporations cannot use the 5th amendment only real people can enact the 5th amendment

Question 6

Know the textbook’s example of Agency Direct Observation enforcement

Answer 6

Book examples
- Worksite safety inspections by OSHA inspectors
- Testing by the EPA for excessive air pollution emissions.

More information on what Direct observation is and limitations.

No warrant is required if obtained from an “open field” observation, that is, if the evidence is gathered by an inspector through observations from areas where the public has access to.

If cops don’t need a warrant to enter and search then agencies don’t need one either.
“Open field” refers to places where it’s public or the area is inviting people in.

Question 7

Know the requirements for an agency to obtain evidence from public access areas against potential violators

Answer 7

Since it’s a public area there is no need to obtain a search warrant.

Question 8

Know the ruling of the Dow Chemical v. United States case

Answer 8

Case details: Dow Chemical did not allow anyone into its property but the agency flew over Dow chemical and could see all the terrible things they were doing and used it against them A case was build saying they couldn’t use the information because they obtained it illegally.

Decision: but the court ruled that the area above them was open to the public thus they violated no rule, if the public can fly over then the agency can too.

Question 9

How are agency inspections cleared up?

Answer 9

Most violations discovered by agency inspections are cleared up informally

The agency’s don’t have to do it informally but majority of cases go this route

Question 10

Know what the court in Black Beauty Coal Co. v. Federal Mine Safety and Health Review Commission decided

Answer 10

Case Background
- Mine safety and health administration (MSHA) inspector Franklin entered a mine in Indiana operated by Black Beauty. The company assigned Hammond to escort Franklin. When he entered the mie, he smelled burning coal. He asked some miners about it. Hammond said he would have someone fix the problem. Franklin said to shut down the belts, but Hammond refused to do so, thus he got a caution.

Answer:
- They denied their appeal of the citation based on historical history,
-Black Beauty had been cited for several past accumulation violations.
- The burning smell existed for a significant time period
- Villain “should have seen and noted” the coal turning in the tail
- Vogel and the other miners did not alert management after noticing a burning smell.

Thus Black Beauty’s petition for a review is denied.

In-Class answer
- There was sufficient evidence to uphold the citation

Question 11

Know what a business does if it does not agree with the outcome of an agency’s adjudicatory hearing

Answer 11

They can appeal, they usually appeal to the head of the agency.

Question 12

Know the standards for courts reviewing informal agency procedures

Answer 12

Background information: agencies rely heavily on formal procedures that allow Leeway into forcing compliance. Because informal procedures generally require less time and money than formal procedures, agencies preferred to use them when possible.

Broad Answer: in reviewing agency procedures the courts are generally most concerned with whether that agency procedure was fair and whether that decision was consistent with the legislative intent of Congress.

In-depth answer.

When it’s an interpretation of the law
- the court interprets the law thus they don’t rely on what the agency said.

When it’s an interpretation of administrative function
- they give reference to the agency, because “the agency was set up to do that so they know what they are doing” unless they are being arbitrarily and capricious.

Question 13

Know what an administrative law judge is

Answer 13

Primarily they are an employee of the agency.

Question 14

Know what the Lujan v. Defenders of Wildlife Court held about an environmental group’s concern about crocodiles in Egypt

Answer 14

They weren’t injured by what happened to crocodiles in Egypt so since they weren’t injured, they had no standing. AKA they weren’t being affected by what was happening thus they had no standing.

Question 15

Know the court’s holding regarding standing in Summers v. Earth Island Institute

Answer 15

Case Background
- After a 2002 forest fire, the Forest Service approved a 238-acre salvage timber sale without an Environmental Impact Statement (EIS) or formal notice, citing regulatory exemptions. Earth Island Institute challenged the decision, leading to court rulings halting the sale. The government sought a review on whether Earth Island could challenge the regulations.

Answer
- The plaintiff could not demonstrate standing and thus could not challenge the Forest Service actions in court.

Question 16

Can Congress prohibit judicial review of a particular administrative decision

Answer 16

Yes, they can in their enabling legislation or any other law they pass about the agency they can say these kinds of decisions cannot go to court the agency is the final word.

Simple answer - they can and they do

Question 17

Know the final determination of the Fish and Wildlife Service’s actions in M. Farm & Livestock Bureau v. Dept. of Interior

Answer 17

Answer - It is arbitrary and capricious they are not following their own rules, and they are not keeping track of the Jaguars.

Case Background
- The Fish and Wildlife Service designated 1,200 square miles in Arizona and New Mexico as critical jaguar habitats. Plaintiffs challenged the designation of two units, arguing a lack of confirmed jaguar sightings. The court upheld the FWS’s decision, finding it arbitrary or capricious thus reversing the decision.

Question 18

Know how an agency’s statutory interpretation is reviewed by courts

Answer 18

A court’s review of an agencies is statutory interpretation is given a greater scope of review. In contrast to the technical judgments required of the agency and implementing a statute, the courts have responsibility for the interpretation of the meaning of statute enacted by Congress.

Simple answer - the courts are the ones who make the statutory decisions. They don’t rely on the agencies interpretations.

Question 19

Know the three statutes from the textbook that are indirect control on agencies. What are they and what do they do?

Answer 19

1. ⭐️ Freedom of information
   
   • the freedom of information act (FOIA) makes most documents held by federal agency is available to the public. Unless the document falls within certain exempt categories, it must be released upon request from a citizen, although the process is often very slow and can be expensive.
2. Privacy Act
   
   • the privacy act informs citizens about what information is collected about them and how the information is used. It requires that unless an exception applies notice and prior consents are required before an agency can disclose information that concerns and identifies an individual.
3. Government in the Sunshine Act
   
   • the government in sunshine act limits secret meetings by agencies. The public is entitled to at least one weeks notice of the time, place and subject matter of agency meetings.

Question 20

Be able to define the term Security

Answer 20

Security is either debt from a publicly traded corporation or equity from a publicly traded corporation. Debt is usually called bonds and equity is usually called stocks or shares.

Question 21

Know the four elements of a security under the Howey test. KNOW ALL FOUR FOR THE TEST.

Answer 21

1. An investment of money.
2. In a common enterprise.
3. With an expectation of profits.
4. Generated by the efforts of persons other than the investor.

Question 22

Know the purpose of the disclosure provisions in federal securities law

Answer 22

We want potential investors to have good clear information so it’s even an is fair to everyone. The investors have all the information which then they can make good decisions.

Question 23

Know what must be included in the second part of an SEC registration statement

Answer 23

1. The first part must have some very specific things.
2. The second part is detailed information required by the SEC.
   • More history on the financial background
   • Past experience of the issuers is required
   • More information about the proposed business and the issuers

Question 24

Know what SEC can and cannot do when reviewing a registration statement

Answer 24

⭐The SEC [CAN] issue a deficiency letter if they think the issuer is not doing a good job with what they are disclosing

It [CANNOT] give an opinion on the likelyhood of success of a proposed business.

Question 25

Know the term for the entity that is hired to market new securities

Answer 25

Underwriter

Question 26

Know the definition of publicly held company

Answer 26

Any large company that sells its securities in the open stock exchanges

Question 27

Know the definition of private company

Answer 27

They have less than 500 shareholders and their securities are not publicly available

Question 28

Know what SEC Rule 10b-5 does

Answer 28

Section 10(b) of the 1934 act is about manipulative or deceptive devices that are used to create securities fraud.

Question 29

Know the three things prohibited by Rule 10b-5

Answer 29

1. To employ any device scheme or artifice to defraud ⭐️ 2. To make any untrue statement of material fact, or to admit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. 3. To engage in any act practice, or course of business which operates or would operate as a fraud or deceits upon any person in connection with the purchase of sale of any security.

Question 30

Know the example of securities law misleading information from the text

Answer 30

Defenition - Securities law imposes liability for misstatements or omissions (failure to reveal information) about the financial status of a business that has issued securities. {{Text Example}} - Overly optimistic statements by executives can cause expectations of higher profits, leading investors to bid up the price of the stock. When the statements are found not to be related to actual performance, the stock price falls, thereby imposing losses on those who bought the stock on the basis of the positive statements

Question 31

Know what the court said in the Smallen v. Western Union Co. case said about the intent needed to show a company committed securities fraud

Answer 31

Case background: -People were using Western Union to commit money laundering. And when word got out one of their shareholders said that the company should have told him about that. Because they could have sold their stock early and not taken such a loss. Answer - The court says that when you are going after someone with the rule 10b-5 you have to show evil will or bad intent (Scienter). Since there was no (Scienter) there was no violation.

Question 32

Know what the Securities Litigation Uniform Standards Act of 1998 requires

Answer 32

That all security litigation has to be in federal court.

Question 33

Know what CEO’s and CFO’s of publicly traded companies are required to do under Sarbanes-Oxley

Answer 33

The Sarbanes-Oxley Act requires that the Chief Executive Officer [CEO] and Chief Financial Officer [CFO] of large companies that have publicly traded stock personally certify that financial reports made to the SEC comply with SEC rules and that the information in the reports is accurate.

Question 34

Know what enabling legislation created the Public Company Accounting Oversight Board

Answer 34

Sarbanes-Oxley

Question 35

Know what the Supreme Court said about non-corporate insiders who luck into inside information on securities

Answer 35

If a person obtains insider-information by pure chance aka not actively trying to acquire it and has no obligation to say anything about it, they can trade using the information, it’s not ethical, but they will not go to jail. Short answer - If you are lucky enough to hear insider information and don’t have a responsibility to say anything you can use it to trade and it’s not illegal.

Question 36

Know what the U.S. v. Kosinski case said about insider trading for a scientist conducting tests for a publicly traded company.

Answer 36

Case Background - A dude that had a non-disclosure agreement he violated it by realizing the test he was making we’re gonna be terrible and the company’s drug was not gonna be approved so he went and sold all the stock. Even though he wasn’t an employee of the company he did have a non-disclosure agreement so he had an obligation to protect the shareholders on it and he violated it so he went to jail. Short answer - he had a non-disclosure agreement which meant he had the responsibility to protect the shareholders which he violated thus he went to jail.

Question 37

Know what is considered illegal practices for security professionals

Answer 37

[[Churning]] - This occurs when a broker who has control of a client's accounting buys and sells an excessive amount of stock to make money from the commissions earned on transactions. [[Scalping]] - This is when a professional buys stock for personal benefit, and then urges investors to buy the stock so that the price rises to the benefit of the professional.

Question 38

Drug companies bear the cost of developing new drugs. Know how much the average development cost of a new drug is

Answer 38

It costs as much as 1 billion and it takes an average of 14 to 15 years to develop a new drug and to clear all FDA hurdles before a new product can be marketed.

Question 39

Know the scam where a postcard informing the recipient that they won valuable prizes results in the recipient having to pay money to get the prizes and Know what the FTC can do about it

Answer 39

This type of scam is called [[Telemarketing Fraud]] The FTC set up a Telemarketing Sales Rule - This allows consumers to sue telemarketers if they make telemarketing calls in violation of consumer instructions to be removed from call lists. If a consumer places a phone number on the National Do Not Call Registry, then it is improper if a company calls unless the consumer has had a business relationship with the company.

Question 40

Know the FTC three-prong test for deception. Be able to look at examples and find the one that meets the three prongs. Hint: Look for deception (lies)

Answer 40

The question will most likely ask for which is not an example of the three-prong rule. So know all three. 1. There is a misrepresentation or omission of information in a communication to consumers. 2. The deception is likely to mislead a reasonable consumer 3. The deception is material; that is, it is likely to be misleading to the detriment of consumers

Question 41

Know the FTC test for unfairness (it also has three elements)

Answer 41

1. It causes substantial harm to consumers 2. The injury is harmful in its net effects 3. Consumers cannot reasonably avoid injury

Question 42

Know the example of what is not deceptive advertising

Answer 42

Text Example - Hair dye is often advertised as "permanent." A few people may think it means their hair will be the color of the dye forever, but no deception is involved. Most consumers know what is meant, and those who do not understand do not incur significant injury. The focus is on likely injury to the target of advertisements.

Question 43

Know the law that allows a private person to sue a false advertiser. Hint: trade marks

Answer 43

[[[The Lanham Acts]]] - Any person who, or in connection with any goods or services, or any container for goods, uses in commerce any word, term, name, symbol, or device... or any false designation "of origin, false or misleading description of fact, or any false or misleading representation"

Question 44

Know what kind of damages a company can get when its competitor makes false statements about the company in advertising

Answer 44

Double damages

Question 45

Know what the FTC must do to finalize a new regulation

Answer 45

They must publish it in the federal register

Question 46

Know what the court ruled in FTC v. Consumer Defense, LLC

Answer 46

Case Background - Consumer LLC was "Offering" to help people keep their homes during the recession, it was a scam they kept the payments. Answer - A restraining order could be issued to shut down Consumer Defense immediately for actions and violations of the rule.

Question 47

Know how states deal with deceptive business practices

Answer 47

They have their own laws and practices they either allow the state attorney general and or private individuals to go after a false advertisement and deceptive business practices

Question 48

Know the holding of KS Trade LLC v. International Gemological Inst. Inc.

Answer 48

Case background - A retailer didn’t like what the wholesale company was doing to pump up the price of diamonds all retails were pumping the price of diamonds, but this place didn’t like it so they filed a lawsuit to get it stopped, but they had no standing. They were not harmed but what they do. Answer - the New York law says that as long as the defendant is doing something to harm consumers, anybody can file a lawsuit so it turns out KS trade had standing.

Question 49

Know the five requirements put on creditors by the Consumer Credit Protection Act (CCPA)

Answer 49

- Creditors must disclose all relevant terms in credit transactions ⭐(Truth in lending)⭐ - Procedures for correcting inaccurate and disputed bills and charges must be provided ⭐(Fair credit billing)⭐ - Credit-reporting agencies must provide accurate information in consumer reports ⭐(fair credit reporting)⭐ - Creditors may not use certain personal characteristics, such as sex or race, in determining a person's creditworthiness ⭐(Equal Credit Opportunity)⭐ - Abusive debt collection techniques are prohibited⭐(Fair debt collection practices)⭐

Question 50

Know what Truth in Lending requires

Answer 50

This requires creditors in consumer transactions to disclose basic information about the cost and terms of credit to the consumer-borrower.

Question 51

Know who Truth in Lending applies to

Answer 51

Anybody that provides credit as a normal part of their business is subject to truth in lending. Anybody that supplies credit. clarification - Credit as in financial credit

Question 52

Know what right a consumer has under the Fair Credit Reporting Act((check link))

Answer 52

If you’re rejected on credit, if you request it, they have to give you all the information they used to reject you, which means credit report or anything along those lines.

Question 53

Know what a credit reporting company must do when a consumer notifies it of an error on their credit report

Answer 53

When a consume tells a reporting agency about incorrect information, the information must be deleted or changed or a statement from the consumer about the problem must be put in the file.

Question 54

Know which statute gives you the right to see your credit report for free once a year

Answer 54

FACT Act

Question 55

Know the name of the statute that prohibits discrimination in credit

Answer 55

⭐The Equal Credit Opportunity Act (ECOA)⭐ - The Equal Credit Opportunity Act (ECOA) was added to the CCPA to prohibit credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age.

Question 56

Know what the Fair Debt Collection Practices Act prohibits

Answer 56

The Act makes abusive debt collection practices illegal and contains a list of required actions. - Harassing, deceptive, and unfair debt collection practices - including threats of violence or arrest, obscene language, the publication of a list of delinquent consumers, and harassing phone calls-are prohibited.

Question 57

Know what the Chuway v. National Action Financial Services Court held

Answer 57

Case background - When they contacted the debtor they said you own this much but there are a whole bunch of fees and interest they keep getting at it all through every day so when you do wind up paying you’re gonna owe more so the longer you wait the worse is gonna get they were being misleading. Answer - Appeals court held the debt collector used inaccurate terms about the balance due and so violated the Fair debt collection Practice Act (FDCPA)

Question 58

Know what the Sherman Act prohibits

Answer 58

Simple answer: Monopolies Long Answer: - Every contract, combination in the form of trust or otherwise, or conspiracy, in (restrain of trade) or commerce among the several States, or with foreign nations, is hereby declared to be illegal. - Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony.

Question 59

Know what the primary intention of the Clayton Act is

Answer 59

Companies can’t buy other companies to gain monopoly power.

Question 60

Know the remedies available for antitrust lawsuits

Answer 60

- Monetary Damages - Restrain a company or individuals from certain conduct - Force a company to sell part of its assets (Break up the company) - Force a company to let others use its patents or facilities (Licensing) - Cancel or modify existing business contracts

Question 61

Know the definition of the per se rule

Answer 61

Per se means “as it is” Which means if this happens you violated the Sherman act.

Question 62

Know the definition of the rule of reason

Answer 62

There are things that aren’t automatic violations but the court is gonna look at it to see if it makes it more competitive or less competitive, if it’s less competitive, the Sherman act is gonna stop it, but if it makes it more competitive, they won’t they won’t stop it.

Question 63

Antitrust law does not stop a company from getting larger or doing more of its processes in-house

Answer 63

Basically means that if a company was small and used to rent space or buy from suppliers but it then grows larger and larger and starts to in-source products or store their own products, the Sherman act does nothing to them because they got it by their own power.

Question 64

Know what law the government used to break-up the Standard Oil Trust

Answer 64

The Sherman Act

Question 65

Know why the court in S. v. Baker Hughes let the merger go forward

Answer 65

The merger should not be stoped because sophisticated buyers would ensure competitive prices.

Question 66

Know what a horizontal restraint of trade is

Answer 66

Horizontal means companies that do the same thing. If two companies that do the same thing want to merge it would be a horizontal restraint of trade.

Question 67

Know what the Supreme Court said about price fixing in S. v. Trenton Potteries

Answer 67

Companies getting together and setting their prices high which is a per se violation.

Question 68

Know how the Supreme Court used the rule of reason to determine that BMI and ASCAP setting blanket licensing fees for music is allowed

Answer 68

Since there was no other way for it to do what they were doing and to be as efficient and keep cost low then it was allowed.

Question 69

Know the holding of Todd v. Exxon Corp

Answer 69

Case background - Oil companies were getting together and sharing information about how much they paid their managers and so they decided to pay the lowest amount to keep the pay low, it turned out to be a horizontal restraint of trade. Answer - Courts are more likely to say it’s not a violation of the Sherman act if the data exchanges are made public, but if they keep it private and use it themselves, then it is a violation.

Question 70

Know what the Supreme Court decided in FTC v. Indiana Federation of Dentists regarding dentists mutually agreeing to not submit X-Rays to insurance companies

Answer 70

Case background - dentist decided to not submit x-rays to insurance companies that way insurance companies couldn’t tell they were doing unnecessary procedures and refused to pay for it. Answer - It was a vertical restraint of trade thus it was an illegal restraint of trade

Question 71

Know the holding of Leegin Creative Leather Products v. PSKS

Answer 71

Case background - the supplier was saying they were gonna require everyone to have everyone sell their products at a certain price level Answer - The court said under the rule of reason it was held unlawful and the vertical price restraints are reviewed under the rule of reason

Question 72

Know what the court held in S. Steel Corp. v. Fortner Enterprises regarding a loan tied in to sales of the company’s products

Answer 72

Case background - someone wanted to do a mobile home park and he was looking to buy mobile homes, steel Corp. offered to help him with $2 million in exchange for him to buy his mobile homes from them, he borrowed the money but wasn’t very successful so he couldn’t pay it back so they sued him and he said that it was a tying arrangement thus it was illegal so he shouldnt pay. Answer - It wasn’t illegal because there was no monopoly power. He could have gone anywhere to get the loan he didn’t have to choose them. Thus there was no tying power. He has to pay.

Question 73

Know what types of boycotts are prohibited under the Sherman Act

Answer 73

The exam question will be tricky we will receive 4 options and we must pick the most legal boycott. Keep in mind - A boycott occurs when a group conspires to prevent the carrying on of business or to harm a business. - Who, when act acting together, can inflict economic damages on a business. the boycott is used to force compliance with a price-setting scheme or some other restraint of trade. - Unlike other vertical restrictions in which one manufacturer negotiates with dealers about terms of trade for its goods, boycotts may involve manufacturers getting together to tell dealers what they must do, or dealers getting together to tell manufacturers what they must do. ⭐The Supreme Court has made it clear that when horizontal competitors use a boycott to force a change in the nature of a vertical relationship, {{there is a Per Se violation.}}

Question 74

Know what predatory pricing is

Answer 74

In antitrust law, pricing below an acceptable measure of cost (Such as average variable cost) to drive competitors from the market in the short run to reduce competition in the long run.

Question 75

Know the holding from Spartan Concrete Products, LLC v. Argos USVI, Corp

Answer 75

Case background - took place in the Bahamas, a company from one island wanted to go into the concrete business on another island where the first company was and they went into a big price war and for three years they had to price everything to try to drive the other company out of business they weren’t able to later they found out that the concrete supplier (the defendant) gave their competitor a 10% discount so they were getting the concrete for less. They were saying that he can’t favor one company over the other because it violates the Sherman act. Answer - the court said that it wasn’t the 10% discount that made the plaintiff lose all that money. It was them cutting their prices by 30% lower than what their costs were. So Argos wasn’t liable for it.

Question 76

Know the definition of public nuisance in a pollution case

Answer 76

Public Nuisance - An unreasonable interference with a right held in common by the public. ⭐In a pollution case - The right held in common is a community's right to a reasonably clean and safe environment.

Question 77

Know the holding of the Georgia v. Tennessee Copper Company case

Answer 77

Case background - there was a coppers melter in Tennessee and they were creating all kinds of awful air quality and they were pumping it out, and it was all going east to Georgia, the pollution was bad. Answer - the court said if the Tennessee copper company can’t show that they are gonna be able to control the pollution then they can (“enjoin”) them from operating aka they will be shut down.

Question 78

Know what must be proven by the plaintiff to win a pollution trespass case

Answer 78

Physical invasion of your property.

Question 79

Know what must be proven by the plaintiff to win a pollution negligence case

Answer 79

There must be 1. A duty not to pollute 2. A breach 3. Actual cause 4. Foreseeability of approximate cause 5. There must be damages.

Question 80

Know what the Whalen v. Union Bag & Paper Co. court said about weighing the plaintiff’s small damages against the defendant’s large costs

Answer 80

Case background - the little farmer used the stream to water his crops into water, his life stock then a big paper company moved in upstream, has started creating pollution and dumping it on the stream, but his small amount of damages would have put 500 people out of work so they had to avoid it and it wasn’t fair to put 500 people out of work. Answer - The court said that it doesn’t matter because you can’t allow a big company to steal the rights of the plaintiff, thus the farmer won. Probably test answer - (You can’t allow a big rich company to say our cost are larger and their damages are little so you can’t make us do this. Which turn allows the rich defendant to steal the rights of the plaintiff.)

Question 81

Know the four things that must be a state implementation plan under the Clean Air Act

Answer 81

1. Enforceable emission limits 2. Schedules and timetables for compliance 3. Measures for monitoring air quality and emissions from pollution sources 4. Adequate funding, personnel, and authority for implementing and enforcing the SIP ⭐The test will have 4 choices you must recognize and use the one that isn’t true.

Question 82

Know what kind of standards and restrictions nonattainment areas have under the Clean Air Act

Answer 82

In non-attainment areas there are more stricter regulations on new construction.

Question 83

Know what happens when the EPA determines that a pollutant is a threat to public health or the environment

Answer 83

They start restricting it without worrying what happens to other factors, they ignore all other pre-precautions and factors and start restricting it. If it’s an immediate threat right now they can just shut it down with worrying about other factors.

Question 84

Know what the court decided in Sierra Club v. EPA Regarding the plaintiff’s standing

Answer 84

Case background - a group said you need to stop this power plants in Utah from producing all of the coal fire exhaust because it goes into all the national parks in their harms, the air quality and so the EPA and the power plant said you don’t have standing in the Sierra club says there are members who live in Utah and go at least once a year to these Utah parks and can tell you that they are hazy and hard to breathe there. Answer - Sierra Club had standing because their members were going to the parks that were being impacted.

Question 85

Know the factors that reduce punishment for corporate polluters

Answer 85

⭐ Cooperate with the government in investigations ⭐ Voluntarily report illegal actions (Self-report) ⭐Educate their workforce about environmental standards ⭐ Assist those who suffer from environmental wrongdoing ⭐ Have a strong internal environmental compliance program

Question 86

Know the objective of the Clean Water Act

Answer 86

Want to make the water of the United States cleaner

Question 87

Know what waters are considered to be under federal jurisdiction from the Clean Water Act

Answer 87

All navigable waters meaning all waters that can sail a trading ship down it and any water that connects with navigable water. The question for exam will most like be a fact pattern saying if water goes into a gully what makes it eligible to be protected by the EPA. Answer - If a gully has enough water even if it’s once a year that connects to navigable water then it’s under jurisdiction of the EPA.

Question 88

Know the holding of Decker v. Northwest Environmental Defense Center

Answer 88

The EPA'S interpretation was reasonable so discharge permits were to not be imposed.

Question 89

If you want to change wetlands in anyway, what permit must you obtain?

Answer 89

Anyone wanting to change a wetland must receive a ⭐Section 404 permit from ⭐The US Army core of Engineers

Question 90

To get a permit to dredge wetlands, what requirement must you meet?

Answer 90

A permit to dredge wetlands includes a requirement that another land be restored to wetland status in exchange. (To take one restore one)

Question 91

Know the holding of the Lost Tree Village Corp. v. U.S. case

Answer 91

Case background - where they had a regulatory taking a builder in Florida wanted to build in a wetland, but the army core of engineers said no because it’s a wetland. which then the tree village said that it reduced the value of the land by more than 99% in the army core of engineers said that it doesn’t matter. Answer - the court found it to be a regulatory taking, which means there was no practical use left for the owners which means the army core of engineers in the EPA has to pay just compensation. Either let them build or pay them.

Question 92

Know what CERCLA (the Superfund statute) says about the liability for potentially responsible parties

Answer 92

If you own some land that had a gas station on it 10 years ago before you owned it and they leaked a bunch of crap into the soil and it became toxic, and they discovered it the person who owned the land put the stuff in the land and anyone who has owned the land afterwards is responsible. ⭐️ (Joint and several liability) Anyone who has owned the land is liable, they will target whoever is easiest to get a hold of.

Question 93

Know the holding of Sierra Club v. United States DOI

Answer 93

Case background - case where they were doing a pipeline to Texas, and it went through a jaguar habitat in the department of interior made them change their plans and buy a whole bunch of private hand to make it as a Jaguar habitat, but they said eventually, it will only impact one Jaguar, the Sierra club didn’t like it and they sued. Answer - the court said the department of interior has been reasonable, so Sierra Club can’t stop it.

Question 94

Know the holding of Massachusetts v. Environmental Protection Agency regarding the EPA’s ability to regulate greenhouse gases

Answer 94

The Supreme Court said - since the EPA is given responsibility to make sure the air is clean, they can regulate anything that goes into the air, including greenhouse gases, which is also the case that allows them to regulate what cars do in the amount that comes out of cars.