Question 1

Final rules do not have binding legal effect until the courts confirm them.

Accepted Answer

A) True 
 B)False

Question 2

Media Report seeks information about well-known businesspersons under the Freedom of Information Act. To obtain the information, Media Report must

Accepted Answer

A)   agree not to reveal any trade secrets.
B)   reasonably describe the information.
C)   get a court order.
D)   obtain the businesspersons' consent.E) C) and D)
F) None of the above

Question 3

Notice-and-comment rulemaking involves regulators noticing a situation that lacks a rule, commenting on it, and then issuing a rule.

Accepted Answer

A) True 
 B)False

Question 4

An administrative law judge's decision on a dispute over an administrative action is the final order of the agency-no appeal is possible.

Accepted Answer

A) True 
 B)False

Question 5

Delta Water Company is subject to a decision by the Environmental Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision

Accepted Answer

A)   changed the agency's prior policy without justification.
B)   followed a consideration of all legally appropriate factors.
C)   was accompanied by a rational explanation.
D)   was plainly warranted by the evidence.E) None of the above
F) C) and D)

Question 6

Congress can exercise authority over the power of an administrative agency by revising its funding, changing its responsibilities, or abolishing it altogether.

Accepted Answer

A) True 
 B)False

Question 7

The Food and Drug Administration (FDA)  wants Pharma Inc. to produce certain records for review. Pharma need not reveal

Accepted Answer

A)   incriminating information.
B)   files that are not otherwise required by law.
C)   facts that could be used against the firm in a court.
D)   trade secrets.E) B) and D)
F) B) and C)

Question 8

The Federal Trade Commission Act granted the Federal Trade Commission the power to

Accepted Answer

A)   oversee the nation's stock exchanges.
B)   regulate specific areas of business and industry.
C)   prevent businesses from engaging in unfair trade practices.
D)   work to eliminate discrimination in skilled occupations.E) C) and D)
F) None of the above

Question 9

Normally, a business firm complies with an agency request to inspect facilities because it is in the firm's interest to maintain good relations with the agency.

Accepted Answer

A) True 
 B)False

Question 10

To notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal

Accepted Answer

A)   through a broadcast on a public television station.
B)   in a trade journal available to members of the industry.
C)   in the Federal Register.
D)   on its website.E) A) and B)
F) B) and D)

Question 11

The Federal Emergency Management Agency (FEMA)  discovers that Rescue Inc. is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be

Accepted Answer

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.E) All of the above
F) A) and B)

Question 12

In the absence of a challenge, an agency action may be "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law."

Accepted Answer

A) True 
 B)False

Question 13

The Securities and Exchange Commission (SEC)  wants to review certain documents of Trade Funds Inc. Whether it is permissible for the SEC to request or review the documents depends on whether the documents are

Accepted Answer

A)   incriminating.
B)   relevant.
C)   technical.
D)   valuable.E) B) and C)
F) None of the above

Question 14

Because the Administrative Procedure Act imposes requirements that all federal agencies must follow, it is an integral part of the administrative process.

Accepted Answer

A) True 
 B)False

Question 15

To be assured that a court will defer to an administrative agency's interpretation of the law, the agency must

Accepted Answer

A)   meet the formal legal standards for notice-and-comment rulemaking.
B)   exhaust all administrative remedies.
C)   make its records available online and in other electronic formats.
D)   open every portion of every meeting to public observation.E) B) and C)
F) A) and D)

Question 16

The rules of administrative agencies can be

Accepted Answer

A)   as binding as laws passed by Congress.
B)   only as persuasive as experts' opinions.
C)   merely as suggestive as media commentary.
D)   no more influential than promotional puffery.E) A) and B)
F) A) and C)

Question 17

Under the Administrative Procedure Act, a party seeking judicial review of an agency decision must first exhaust all administrative remedies.

Accepted Answer

A) True 
 B)False

Question 18

For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rulemaking.

Accepted Answer

A) True 
 B)False

Question 19

A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is

Accepted Answer

A)   adjudication.
B)   declaration.
C)   rulemaking.
D)   investigation.E) C) and D)
F) A) and D)

Question 20

Organic Frozen Foods Corporation is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of

Accepted Answer

A)   administrative law.
B)   legislative law.
C)   executive law.
D)   judicial law.E) B) and C)
F) A) and D)

Exam 37: Administrative Law

Organic Frozen Foods Corporation is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of

Correct AnswerverifiedShow Answer

Congress can exercise authority over the power of an administrative agency by revising its funding, changing its responsibilities, or abolishing it altogether.

Correct AnswerverifiedShow Answer

Normally, a business firm complies with an agency request to inspect facilities because it is in the firm's interest to maintain good relations with the agency.

Correct AnswerverifiedShow Answer

Delta Water Company is subject to a decision by the Environmental Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision

Correct AnswerverifiedShow Answer

In the absence of a challenge, an agency action may be "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law."

Correct AnswerverifiedShow Answer

A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is

Correct AnswerverifiedShow Answer

Media Report seeks information about well-known businesspersons under the Freedom of Information Act. To obtain the information, Media Report must

Correct AnswerverifiedShow Answer

To be assured that a court will defer to an administrative agency's interpretation of the law, the agency must

Correct AnswerverifiedShow Answer

The rules of administrative agencies can be

Correct AnswerverifiedShow Answer

The Securities and Exchange Commission (SEC) wants to review certain documents of Trade Funds Inc. Whether it is permissible for the SEC to request or review the documents depends on whether the documents are

Correct AnswerverifiedShow Answer

Because the Administrative Procedure Act imposes requirements that all federal agencies must follow, it is an integral part of the administrative process.

Correct AnswerverifiedShow Answer

Under the Administrative Procedure Act, a party seeking judicial review of an agency decision must first exhaust all administrative remedies.

Correct AnswerverifiedShow Answer

Notice-and-comment rulemaking involves regulators noticing a situation that lacks a rule, commenting on it, and then issuing a rule.

Correct AnswerverifiedShow Answer

The Federal Trade Commission Act granted the Federal Trade Commission the power to

Correct AnswerverifiedShow Answer

Final rules do not have binding legal effect until the courts confirm them.

Correct AnswerverifiedShow Answer

An administrative law judge's decision on a dispute over an administrative action is the final order of the agency-no appeal is possible.

Correct AnswerverifiedShow Answer

The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal

Correct AnswerverifiedShow Answer

To notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal

Correct AnswerverifiedShow Answer

The Federal Emergency Management Agency (FEMA) discovers that Rescue Inc. is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be

Correct AnswerverifiedShow Answer

For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rulemaking.

Correct AnswerverifiedShow Answer

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