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B1. Administrative agencies create administrative law.
B2. Administrative agencies may issue regulations.
B3. Congress creates federal administrative agencies.
B4. The president of the United States has the power to appoint the members
of federal administrative agencies.
B5. Administrative agencies are independent of the executive, judicial, and
legislative branches of government.
B6. Administrative agencies donothave rule-making powers.
444TEST BANK B—UNIT NINE: GOVERNMENT REGULATION
B7. Administrative rules donothave binding legal effect.
B8. Federal agencies must follow formal procedures to make policy.
B9. A subpoenaad testificandumis an order to an individual or organization
to hand over certain records, papers, or books.
B10. An administrative agency can compel a witness to appear at an agency
B11. Administrative agencies must rely on the voluntary statements of third
parties to fulfill the agencies’ fact-gathering function.
B12. An administrative agency cannot conduct a search without a warrant.
B13. Administrative agencies have adjudicatory powers.
B14. Most disputes over administrative actions are resolved through
negotiated settlements at their initial stages.
CHAPTER 43: ADMINISTRATIVE LAW445
B15. Any party to a case may appeal the order of an administrative law judge
to the board or commission that governs the agency.
B16. The judicial branch exercises control over administrative agencies
through its power to fund them.
B17. A regulated party can take a dispute about the regulation to a court
rather than going through the administrative adjudicatory process.
B18. Congress can “freeze” the enforcement of a regulation before it takes
B19. Under the Regulatory Flexibility Act, administrative agencies have the
flexibility to issue any regulation that will have “a significant impact.”
B20. Federal agencies must prepare guides that explain in “plain English”
how small businesses can comply with federal regulations..
MULTIPLE CHOICE QUESTIONS
B1. Congress leaves it to the Bureau of Prisons to oversee the promulgation
of detailed regulations in areas under the agency’s jurisdiction. This is
a. divine right.
b. the delegation of legislative powers.
c. gap-filling power.
d. unconstitutional conduct.
446TEST BANK B—UNIT NINE: GOVERNMENT REGULATION
B2. Seafood Restaurant Company pays income and other taxes collected by
the Internal Revenue Service (IRS). Like other federal administrative
agencies, the IRS was created by
a. Congress, through enabling legislation.
b. the courts, through the adjudicatory process.
c. the U.S. Constitution, through the _ Amendment.
d. the U.S. Department of the Treasury, through a final order.
B3. Persons who favor the creation of a National Biotech Agency to regulate
the production of genetically altered agricultural products should concentrate
their lobbying efforts on
b. federal administrative agencies that oversee agricultural
c. the United States Supreme Court.
d. the president of the United States.
B4. Truck Transport Company is subject to a decision by the National Labor
Relations Board. Truck Transport appeals the decision, arguing that it is
arbitrary and capricious. This could mean that the decision
a. followed a consideration of legally appropriate factors.
b. justifiably changed the agency’s prior policy.
c. was accompanied by a rational explanation.
d. was plainly contrary to the evidence.
B5. The Office of Postsecondary Education, like other federal administrative
agencies, is part of the government’s
a. administrative branch.
b. executive branch.
c. judicial branch.
d. legislative branch.
CHAPTER 43: ADMINISTRATIVE LAW447
B6. The Federal Highway Administration uses notice-and-comment
rulemaking. This process begins with
a. a request to Congress to enact enabling legislation.
b. the filing of a complaint against a charged party.
c. the publication of a notice of proposed rulemaking.
d. the solicitation of public comments.
B7. The U.S. Citizenship and Immigration Service issues a rule. Like the
rules of other federal administrative agencies, this rule is compiled in
a. theAdministrative Register of the Federal Government.
b. theCode of Federal Regulations.
c. theFederal Rules of Civil Procedure.
d. theUnited States Code.
B8. In reviewing the actions of the U.S. Office of Nuclear Energy and other
agencies, the courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. all of the choices.
B9. The Equal Employment Opportunity Commission (EEOC) orders First
Financial Company to reveal certain information. First Financial
complains to a court, arguing that the order is an abuse of the EEOC’s
discretion. Like other agencies, the EEOC can use a subpoena to
a. obtain any information, without limits.
b. obtain assurances that the law is not being violated.
c. obtain documents, but not to compel a party to testify.
d. pressure a party to settle an unrelated matter.
448TEST BANK B—UNIT NINE: GOVERNMENT REGULATION
B10. The U.S. Patent and Trademark Office (USPTO) wants to review certain
records of Verity Corporation. The USPTO can gain access to the records
a. a subpoena only.
b. neither Verity’s consent nor a subpoena.
c. Verity’s consent only.
d. Verity’s consent or a subpoena.
B11. Caleb is a witness in a controversy involving the U.S. Drug Enforcement
Administration. Caleb can be compelled to appear before an administrative
law judge if he is served with
a. an order for specific performance.
b. a rule for parol evidence.
c. a subpoenaad testificandum.
d. a subpoenaduces tecum.
B12. Nursing Home Care Company is charged with violating a rule of the
Social Security Administration. Most likely, Nursing Home Care will be
required to appear at a hearing presided over by
a. a federal appellate court judge.
b. a federal district court judge.
c. an administrative law judge.
d. a U.S Marshal.
B13. The functions of the Social Security Administration, like those of other
administrative agencies, include
CHAPTER 43: ADMINISTRATIVE LAW449
B14. The U.S. Mine Safety Administration conducts searches of certain
businesses. This agency and other administrative agencies can conduct
warrantless searches in
a. all industries.
b. highly regulated industries.
c. no industries.
d. newly regulated industries only.
B15. The Federal Emergency Management Agency (FEMA) discovers that
Goodnuff Trailers, Inc., is violating a FEMA regulation. If this situation
is resolved like most such disputes, the outcome will be
a. a negotiated settlement.
b. a trial and a fine.
c. a trial and an appeal to a higher authority.
d. a trial and the dissolution of the business.
B16. Labor Recruiters, Inc., has been ordered to appear at a hearing before an
administrative law judge of the National Labor Relations Board. A
significant difference between a trial and an administrative hearing is
a. attorneys are not allowed to attend administrative hearings.
b. clients are not allowed to communicate with their attorneys during
c. hearsay can be introduced as evidence in an administrative
d. the burden of proof is on the charged party to prove innocence.
450TEST BANK B—UNIT NINE: GOVERNMENT REGULATION
B17. Plastix Produx Company is subject to a decision by the Consumer
Product Safety Commission. Opposed to the decision, Plastix Produx
wants a court to review it. First, however, the firm must use all of the
potential administrative remedies. This is
a. an actual controversy at issue.
b. standing to sue.
c. the exhaustion doctrine.
d. the ripeness doctrine.
B18. Jay seeks information about Kim and other well-known businesspersons
under the Freedom of Information Act. To obtain the information, Jay
a. agree not to reveal any trade secrets.
b. describe the information.
c. get a court order.
d. have Kim’s and the others’ permission.
B19. A failure of the Federal Bureau of Investigation to comply with a request
under the Freedom of Information Act (FOIA) may be challenged in
a. a federal district court.
b. a hearing before the U.S. Freedom of Information Agency.
c. a meeting with Congress’s FOIA subcommittee.
d. a special conference with the president of the United States.
B20. Closed meetings of the Office of Community Planning and Development
and other federal administrative agencies are permitted when
a. the subject of the meeting concerns accusing a person of a crime.
b. open meetings would frustrate the implementation of future
c. the subject of the meeting involves matters relating to future litigation
d. all of the choices.
CHAPTER 43: ADMINISTRATIVE LAW451
B1. Power-Plus Battery Company (PPBC) makes batteries for motor vehicles.
The Occupational Safety and Health Administration (OSHA) proposes a
safety rule governing the handling of acids in the workplace, including
chemicals PPBC uses in its operations. PPBC concludes that the rule
will involve substantial compliance costs without significantly
increasing workplace safety. PPBC sends a letter to OSHA indicating its
objections to the proposed rule and enclosing research reports and other
data supporting those objections. Does OSHA have any obligation to
consider these objections? What procedures must OSHA follow when it
makes new rules, such as this one?
B2. Omega Company operates a computer chip production plant. Paula is the
president of Omega. Ron, a representative of the Occupational Safety
and Health Administration, inspects the plant and, citing a certain
regulation, orders Omega to take specified steps immediately to improve
sanitation at the plant. Paula believes that Ron is either exceeding his
authority or that the regulation Ron claims to be enforcing is excessive.
Can Omega ask a court for an order to stop enforcement of the regulation?
If not, what can Omega do?
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