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Exam 23: Administrative Agencies

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Question 41

Multiple Choice

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

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) None of the above
F) B) and C)

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Question 42

Multiple Choice

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The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is

A) compile the rule with others in the Code of Federal Regulations.
B) draft the rule.
C) publish a notice of the proposed rulemaking.
D) solicit public comment.

E) C) and D)
F) B) and D)

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Question 43

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By delegating some authority to make and implement laws to an administrative agency, Congress gives up its ability to monitor a particular area.

Under a law addressing public concern over power exercised by federal agencies, the government must disclose certain records to any person on request.

According to the United States Supreme Court, courts should not defer to an administrative agency's interpretation of the law.

Tia is a witness in a controversy involving the U.S. Bureau of Tobacco and Firearms. Tia can be compelled to appear before an administrative law judge if she is served with

Information is relevant to an administrative investigation if it assures the agency that the law is not being violated.

On review of an agency's interpretation of the law, a court is likely to defer to the agency's view, unless the court would have interpreted the law differently.

A meeting of a federal agency must be open to public observation if the meeting involves matters relating to future litigation or rulemaking.

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.

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

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.