Business & Finance Chapter 17 The primary tool for local, state, and federal governments use to 

subject Type Homework Help
subject Pages 14
subject Words 4553
subject Authors Al H. Ringleb, Frances L. Edwards, Roger E. Meiners

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60. Substantive (legislative) rules issued by agencies are:
a. statements that provide the agency staff and public with guidance regarding what the agency believes a
certain statute or regulation means
b. administrative statutes with the same force and effect of law as statutes passed by Congress
c. rules that describe an agency's organization, method of operation, and internal practices
d. statements that may only rephrase the language of a statute passed by Congress
e. none of the other choices
61. Substantive (legislative) rules issued by agencies are:
a. statements that provide the agency staff and public with guidance regarding what the agency believes a
certain statute or regulation means
b. statements of the intent of Congressional statutes as approved by the federal judiciary
c. rules that describe an agency's organization, method of operation, and internal practices
d. statements that may only rephrase the language of a statute passed by Congress
e. none of the other choices
62. Administrative laws with the same force of law as statutes enacted by Congress are:
a. procedural rules
b. enforcement rules
c. substantive rules
d. observational rules
e. interpretive rules
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63. Administrative laws with the same force of law as statutes enacted by Congress are:
a. procedural rules
b. enforcement rules
c. observational rules
d. interpretive rules
e. none of the other choices
64. Which classification of administrative laws have the same force of law as statues enacted by Congress:
a. procedural rules
b. enforcement rules
c. substantive rules
d. observational rules
e. interpretive rules
65. Which classification of administrative laws have the same force of law as statues enacted by Congress:
a. procedural rules
b. enforcement rules
c. observational rules
d. interpretive rules
e. none of the other choices
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66. Which classification of administrative laws results in a rule being a federal law:
a. procedural rules
b. enforcement rules
c. substantive rules
d. observational rules
e. interpretive rules
67. Which classification of administrative laws results in a rule being a federal law:
a. procedural rules
b. enforcement rules
c. observational rules
d. interpretive rules
e. none of the other choices
68. When an agency issues a substantive rule, it is generally required by the APA to:
a. interview all parties who will be affected by the regulation before it issues a final order
b. provide public notice and the opportunity for interested parties to comment
c. inform the President of the proposed rule
d. receive the approval of both houses of Congress before it issues a final order
e. inform the President of the proposed rule and receive the approval of both houses of Congress before it
issues a final order and interview all parties who will be affected by the regulation before it issues a final
order
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69. When an agency issues a substantive rule, it is generally required by the APA to:
a. interview all parties who will be affected by the regulation before it issues a final order
b. inform the President of the proposed rule
c. receive the approval of both houses of Congress before it issues a final order
d. all of the other specific choices
e. none of the other choices
70. Interpretative rules issued by administrative agencies are:
a. statements that provide agency staff and the public with guidance about what a certain statute or substantive
rule means in practice
b. judicial statutes with the same force and effect of law as statutes passed by Congress
c. rules that describe an agency's organization, method of operation, and internal practices
d. statements that may only rephrase the language of a statute passed by Congress
e. none of the other choices
71. Interpretative rules issued by administrative agencies are:
a. judicial statutes with the same force and effect of law as statutes passed by Congress
b. rules that describe an agency's organization, method of operation, and internal practices
c. statements that may only rephrase the language of a statute passed by Congress
d. all of the other specific choices may be in that category
e. none of the other choices
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72. are statements issued by an agency to provide its staff and the public with guidance regarding the
interpretation of a substantive rule or a congressional statute.
a. procedural rules
b. enforcement rules
c. substantive rules
d. observational rules
e. interpretive rules
73. are statements issued by an agency to provide its staff and the public with guidance regarding the
interpretation of a substantive rule or a congressional statute.
a. procedural rules
b. enforcement rules
c. substantive rules
d. observational rules
e. none of the other choices are correct
74. In contrast to legislative rules, interpretative rules are:
a. exempt from the notice and comment requirements of the APA
b. not exempt from the notice and comment requirements of the APA
c. exempt from the rule of law
d. not exempt from the rule of law
e. exempt from the commerce clause
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75. Congress authorizes the EPA to regulate air quality by reducing emissions from gasoline engines. The EPA
immediately bans gas engines issues such a regulation. The new regulation is probably:
a. a legal issuance of a substantive regulation
b. a legal amendment of a substantive regulation
c. a legal procedural revision of a substantive regulation
d. an improperly implemented substantive regulation
e. an improper revision of an interpretative regulation
76. Procedural rules issued by administrative agencies are:
a. statements that provide the agency staff and public with guidance regarding what the agency believes a
certain statute or regulation means
b. administrative statutes with the same force of law as statutes passed by Congress
c. rules that describe an agency's organization, method of operation, and internal practices
d. statements that may only rephrase the language of a statute passed by Congress
e. none of the other choices
77. Procedural rules issued by administrative agencies are:
a. statements that provide the agency staff and public with guidance regarding what the agency believes a
certain statute or regulation means
b. administrative statutes with the same force of law as statutes passed by Congress
c. a statement of what companies must do to follow the requirements of regulations
d. statements that may only rephrase the language of a statute passed by Congress
e. none of the other choices
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78. The details of an agency's structure and how it operates internally are covered in:
a. procedural rules
b. agency rules
c. structural rules
d. formal rules
e. interpretative rules
79. The details of an agency's structure and how it operates internally are covered in:
a. interpretative rules
b. agency rules
c. structural rules
d. formal rules
e. none of the other choices
80. detail an agency's structure and describe its method of operation and its internal practices.
a. procedural rules
b. agency rules
c. structural rules
d. formal rules
e. interpretative rules
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81. detail an agency's structure and describe its method of operation and its internal practices.
a. interpretative rules
b. agency rules
c. structural rules
d. formal rules
e. none of the other choices are correct
82. Which classification of administrative rules are usually the most important:
a. interpretative
b. agency
c. procedural
d. substantive
e. none of the other choices are correct
83. Which classification of administrative rules are usually the most important:
a. interpretative
b. agency
c. procedural
d. formal
e. none of the other choices are correct
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84. When an agency proposes a legislative (substantive) rule it must publish it for public inspection in the:
a. Congressional Quarterly
b. Administrative Reporter
c. Federal Supplement
d. Federal Register
e. Code of Federal Regulations
85. When an agency proposes a legislative (substantive) rule it must publish it for public inspection in the:
a. Congressional Quarterly
b. Administrative Reporter
c. Federal Supplement
d. Code of Federal Regulations
e. none of the other choices
86. When an administrative agency engages in rulemaking, it must first publish the proposed legislative rule, then it
must:
a. conduct a trial-like hearing
b. examine witnesses from both sides of the issue
c. have open oral testimony by all interested parties
d. allow written commentaries by interested parties
e. all of the other choices
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87. When an administrative agency engages in rulemaking, it must first publish the proposed legislative rule, then it
must:
a. conduct a trial-like hearing
b. examine witnesses from both sides of the issue
c. have open oral testimony by all interested parties
d. all of the other specific choices
e. none of the other choices
88. The usual public comment period for substantive rules is:
a. 60 to 90 days
b. 6 to 9 months
c. 1 year
d. 5 years
e. 30 days
89. The usual public comment period for substantive rules is:
a. 30 days
b. 6 to 9 months
c. 1 year
d. 5 years
e. none of the other choices are correct
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90. During a formal rulemaking process, an agency may:
a. send the proposed rule to the oversight committee in Congress for a vote
b. send the proposed rule to the U.S. Court of Appeals for review of constitutionality
c. hold an investigatory hearing that may include witnesses who testify about the rule
d. all of the other specific choices
e. none of the other choices
91. During a formal rulemaking process, an agency may send the proposed rule:
a. to the appropriate oversight committee in Congress for a vote
b. to the U.S. Court of Appeals for review of constitutionality
c. to the White House for Presidential approval
d. all of the other specific choices
e. none of the other choices
92. If a statute requires that administrative rule making must be "on the record" then the agency:
a. must hold hearings at which witnesses appear to testify about the proposed rule
b. need not hold hearings at which witnesses appear to testify about the proposed rule
c. must have both physical and electronic copies of all rules
d. need only have electronic copies of all rules
e. must have video recordings of the drafting of all relevant rules
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93. Who ensures that an agency has not exceeded its authority or violated proper procedure in issuing a final rule:
a. the state supreme courts
b. the U.S. Court of Appeals
c. the President of the United States
d. Congress
e. the House of Representatives
94. In Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., where the EPA's "bubble rule" for
measuring pollution from an industrial facility was challenged, the Supreme Court held that:
a. since Congress directly addressed the issue of the bubble policy it was not up to the EPA whether or not to
use it
b. since Congress directly addressed the issue of the bubble policy it was up to the EPA whether or not to use
it
c. since Congress did not directly address the issue of the bubble policy so it was up to the EPA whether or not
to use it
d. since the EPA is not subject to regulation by Congress, it can have whatever policy it wants
e. since Congress gave the EPA special permission to enact whatever policy it wants, the EPA can have the
bubble policy if it wants
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95. In Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., where the EPA's "bubble rule" for
measuring pollution from an industrial facility was challenged, the Supreme Court held that:
a. since Congress directly addressed the issue of the bubble policy it was not up to the EPA whether or not to
use it
b. since Congress directly addressed the issue of the bubble policy it was up to the EPA whether or not to use
it
c. since Congress gave the EPA special permission to enact whatever policy it wants, the EPA can have the
bubble policy if it wants
d. since the EPA is not subject to regulation by Congress, it can have whatever policy it wants
e. none of the other choices are correct
96. Which of the following is a way in which information about compliance with federal laws is obtained:
a. regulated businesses are required to self-report
b. direct observation determines if a business is following the law
c. agency subpoena power is used to require a business to produce documents
d. all of the other specific choices are correct
e. none of the other specific choices are correct
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97. The Environmental Protection Agency has rules about the amount of chemicals that may be emitted into the air. If
a factory emits a chemical and the EPA wants to know if the emissions are within legal limits, the EPA may:
a. demand the factory measure the pollution and report if it is violating the law or not
b. have EPA employees measure the air at the factory to see if it is violating the law or not
c. get a subpoena from a court to force the company to produce documents concerning pollution from the
factory
d. have EPA employees measure the air at the factory to see if it is violating the law or not and get a subpoena
from a court to force the company to produce documents concerning pollution from the factory
e. have EPA employees measure the air at the factory to see if it is violating the law or not and get a subpoena
from a court to force the company to produce documents concerning pollution from the factory and demand
the factory measure the pollution and report if it is violating the law or not
98. The Environmental Protection Agency could require a company subject to its regulations concerning pollution
emissions to do all of the following except:
a. bear the costs of collecting samples of emissions on a regular basis and report to the EPA
b. bear the cost of installing pollution monitoring equipment required by the EPA
c. make reports to the EPA on a regular basis about progress being made on improvements in pollution control
d. bear the costs of collecting samples of emissions on a regular basis and report to the EPA and make reports
to the EPA on a regular basis about progress being made on improvements in pollution control
e. bear the costs of collecting samples of emissions on a regular basis and report to the EPA and make reports
to the EPA on a regular basis about progress being made on improvements in pollution control and bear the
cost of installing pollution monitoring equipment required by the EPA
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99. Agencies with statutory authority to require businesses to provide information may do which of the following:
a. require businesses to self-report on a regular basis
b. rely on observation by the agency by physical inspections
c. issue subpoenas, which force businesses to disclose relevant information from their files
d. rely on observation by the agency by physical inspections and issue subpoenas, which force businesses to
disclose relevant information from their files
e. rely on observation by the agency by physical inspections and issue subpoenas, which force businesses to
disclose relevant information from their files and require businesses to self-report on a regular basis
100. Administrative agencies enforce regulations by doing which of the following:
a. requiring businesses to self-report
b. direct observation by agency personnel
c. direct observation by Congressional staff
d. requiring businesses to self-report and direct observation by agency personnel
e. requiring businesses to self-report and direct observation by agency personnel and direct observation by
Congressional staff
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101. Businesses have contested fines resulting from regulations that require mandatory self-reporting of data. They
contended that self-reporting of violations violated the Fifth Amendment prohibition against self-incrimination. The
Supreme Court has ruled that:
a. the self-incrimination privilege of the 5th Amendment applies to individuals only
b. corporations are not protected by the self-incrimination privilege of the 5th Amendment
c. the self-incrimination applies to businesses if the charge may be for criminal penalties, but not for civil
penalties
d. the self-incrimination privilege of the 5th Amendment applies to individuals only and corporations are not
protected by the self-incrimination privilege of the 5th Amendment
e. the self-incrimination privilege of the 5th Amendment applies to individuals only and corporations are not
protected by the self-incrimination privilege of the 5th Amendment and the self-incrimination applies to
businesses if the charge may be for criminal penalties, but not for civil penalties
102. Suppose EPA requires polluters to report compliance with air pollution emission regulations. Which of the following
statements could be true, given the power EPA is likely to have:
a. if a firm does not exceed pollution limits but fails to file reports, it may be fined
b. if a firm does exceed pollution limits and fails to file reports, it may be fined
c. if a firm does exceed pollution limits, it may be fined even if it does file reports on time
d. if a firm does exceed pollution limits and fails to file reports, it may be fined and if a firm does exceed
pollution limits, it may be fined even if it does file reports on time
e. if a firm does exceed pollution limits and fails to file reports, it may be fined, and if a firm does exceed
pollution limits, it may be fined even if it does file reports on time and if a firm does not exceed pollution limits
but fails to file reports, it may be fined
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103. Testing by the EPA for excessive air pollution emissions is an example of acquiring information by:
a. indirect observation
b. direct observation
c. power of subpoena
d. direct enforcement
e. obvious observation
104. Conducting an on-the-spot worksite safety inspection by OSHA inspectors is an example of acquiring information
by:
a. indirect observation
b. direct observation
c. power of subpoena
d. direct enforcement
e. obvious observation
105. If evidence of regulatory violations can be obtained from observations made in areas the public has access to:
a. there is no need to obtain a warrant
b. there is still a need to obtain a warrant
c. a warrant must still be obtained if the evidence is going to appear in court
d. some states still require that a warrant be obtained
e. a company may require that a warrant be obtained before it will consent to pay fines
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106. If evidence of regulatory violations can be obtained from observations made in areas the public has access to:
a. a company may require that a warrant be obtained before it will consent to pay fines
b. there is still a need to obtain a warrant
c. a warrant must still be obtained if the evidence is going to appear in court
d. some states still require that a warrant be obtained
e. none of the other choices are correct
107. Observations of regulatory violations made from areas open to the public are known as:
a. "open-air" observations b.
"close-air" observations c.
"free-field" observations d.
"open-field" observations
e. "public-field" observations
108. Observations of regulatory violations made from areas open to the public are known as:
a. "open-air" observations
b. "close-air" observations
c. "free-field" observations
d. "public-field" observations
e. none of the other choices are correct
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109. In Dow Chemical Co. v. U.S., where the EPA took aerial photographs of a Dow plant to see if the plant produced
too much pollution, the Supreme Court held that:
a. the plant was located in an industrial park, not on property owned by Dow, this kind of inspection was legal
b. anyone was allowed entry the plant grounds, the EPA had the right to use "entry" by air
c. although entry to the plant was prohibited to the public, aerial photos did not violate the 4th Amendment
d. the plant was closed to the public, a warrant had to be obtained to view the plant from the air or the ground
e. none of the other choices
110. In Dow Chemical Co. v. U.S., where the EPA took aerial photographs of a Dow plant to see if the plant produced
too much pollution, the Supreme Court held that:
a. the plant was located in an industrial park, not on property owned by Dow, so this kind of inspection was
legal
b. anyone was allowed entry the plant grounds, the EPA had the right to use "entry" by air
c. aerial surveillance is illegal under the 4th Amendment
d. he plant was closed to the public, a warrant had to be obtained to view the plant from the air or the ground
e. none of the other choices
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111. A legal instrument that directs the person receiving it to appear at a specified time and place to testify or to produce
documents is a(n):
a. subpoena
b. regulatory summons
c. violation summons
d. administrative summons
e. agency summons
112. A legal instrument that directs the person receiving it to appear at a specified time and place to testify or to produce
documents is a(n):
a. agency summons
b. regulatory summons
c. violation summons
d. administrative summons
e. none of the other choices are correct
113. Administrative agencies may issue subpoenas to obtain business documents that agencies need for law
enforcement. Subpoenas may:
a. only be issued when there is good cause to believe that a violation of the law has occurred
b. not be used to get confidential information
c. only be issued by a federal district judge
d. be used to obtain any information agencies want and no reasons need be given
e. none of the other choices

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