55) A consent order is ________.
A) an agreement on the part of a company to accept a particular administrative action or remedy
imposed by an agency, after having admitted guilt
B) a court order issued by a federal district court requiring that a business cease to engage in a
particular behavior
C) an agreement by a business to stop an activity an administrative agency alleges to be unlawful
and to accept the remedy the agency imposes, without having to accept guilt
D) a court order issued by a federal appellate court ordering a federal district court to supervise
an administrative agency’s behavior
56) How can a consent order benefit a company that has been found guilty of violating an
administrative law by an administrative agency?
A) It avoids an admission of guilt.
B) It can pay the cost of litigation over a period of five years.
C) It can obtain a binding cease-and-desist order against the administrative agency.
D) It avoids having to agree to anything in writing.
57) Which of the following statements is true about administrative law judges?
A) They can serve for a period of up to 10 years.
B) They usually come from within the federal administrative bureaucracy.
C) They are appointed by the U.S. Supreme Court.
D) They are appointed by governors in the respective states and confirmed by the Senate.
58) Which of the following statements is true about the role of an administrative law judge (ALJ)
during a hearing?
A) An ALJ is required to remain silent during a hearing.
B) An ALJ can intervene during a hearing to ask questions.
C) An ALJ can only take note of the evidence that both parties have introduced.
D) An ALJ must submit questions to the involved parties in writing in advance of the hearing.
59) Which of the following is true of an adjudicative proceeding?
A) A hearing before an administrative law judge does not take more than three months to be
resolved.
B) The evidence pertaining to a case is presented by the staff of the commission and not by the
accused party.
C) There is a jury of thirteen members at a hearing.
D) It is less adversarial and more investigative, or inquisitorial, than a court proceeding.
60) Which of the following best defines a preponderance of the evidence?
A) It is a legal standard which transfers the right to adjudicate to a Supreme Court judge.
B) It is a legal standard that places the burden of proving the facts of the case on one party.
C) It is a legal standard whereby the evidence is in favor of one party.
D) It is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.
61) Which of the following is true about the review of an adjudicative proceeding by a federal
court?
A) The court will review both the legal and factual findings of the agency, even if the findings
are supported by substantial evidence in the record.
B) The court will review the factual findings but not the legal findings, unless the legal findings
are supported by substantial evidence in the record.
C) The court will not review the factual findings as long as they are supported by substantial
evidence in the record.
D) The court will conduct its own hearing and will not concern itself with the agency’s legal or
factual findings.
62) A federal circuit court of appeals that has jurisdiction in a case reviews the commission’s
legal findings to ensure that ________.
A) it acted within the scope of the Government in Sunshine Act
B) it acted in a constitutionally approved way
C) the administrative law judge actually read the submitted exhibits
D) the losing party accepts the administrative law judge’s initial decision
63) Both the formal and informal rulemaking processes require an agency to give notice of a
proposed rulemaking to the public in the Federal Register.
64) Formal rulemaking is the model most often used by administrative agencies because it is
efficient in terms of time and cost.
65) Public notice and comment are not required when an administrative agency is making
interpretive rules or general statements of policy.
66) A party can appeal an administrative law judge’s decision to the full commission or agency
head and ultimately to a federal court of appeals and the U.S. Supreme Court.
67) Under a consent order, a company has to admit that it is deceptive.
68) Administrative law judges are appointed by the president.
69) A recommended decision of an administrative law judge becomes the final action for an
agency if an appeal is taken to the full commission by either the staff or the respondent.
70) Agency heads and commissions are required to defer to an administrative law judge’s factual
findings.
71) Preponderance of the evidence is a legal standard whereby a bare majority of the evidence is
sufficient to justify a ruling.
72) Explain the three major rulemaking models—formal, informal, and hybrid—outlined in the
Administrative Procedure Act (APA) of 1946.
73) How does a judicial review of an administrative agency action provide a check against
agency excesses?
74) The National Labor Relations Board (NLRB) is informed that Verdure Industries, a candle
manufacturer, is violating a few labor laws of the United States. What steps should the NLRB
take in this case?
75) Emerald Consultancy, a brokerage firm, advertises that it will double its customers’ money in
five years. However, it fails to do so. Some of the customers file a complaint with the Federal
Trade Commission (FTC). The commission’s staff finds that the advertising is “deceptive” or
“unfair” within the meaning of Section 5 of the Federal Trade Commission Act. How will the
FTC seek to stop the advertising campaign? What is the benefit of this method?
76) List the administrative activities, in addition to rulemaking and adjudication, performed by
executive and independent agencies.
77) Which of the following acts was involved in allowing decision-making processes of
administrative agencies to be open to the public?
A) Federal Register Act of 1933
B) Government in Sunshine Act of 1976
C) Federal Tort Claims Act of 1946
D) Congressional Review Act of 1996
78) Julio Esteban is a U.S. citizen whose grandparents had immigrated to the United State during
World War II. Last month, Julio travelled to Egypt on business. On his return to the United
States, he was detained at the airport on suspicion of being an illegal immigrant. Though he
showed all the relevant documents proving his U.S. citizenship to the U.S. Immigration and
Customs enforcement officials, he was held in a federal immigration detention center for two
days before his lawyer got him out. In this scenario, Julio can sue the U.S. Immigration and
Customs enforcement agency under the ________.
A) Federal Register Act of 1933
B) Federal Privacy Act of 1974
C) Federal Tort Claims Act of 1946
D) Freedom of Information Act of 1966
79) Which of the following best summarizes the provisions of the Federal Register Act of 1933?
A) It mandates the publication of all notices of federal agency meetings, proposed regulations,
and final regulations in the Federal Register.
B) It requires that corporations be registered with the Secretary of State in the state of their
incorporation.
C) It requires each agency headed by a collegiate body to hold every portion of a business
meeting open to public attendance.
D) It requires that patents and trademarks be registered in the Federal Register with the U.S.
Patent Office.
80) The Government in Sunshine Act of 1976 requires each agency headed by a collegiate body
to ________.
A) publish an annual summary of all adjudicatory decisions of the previous year
B) publish a summary of proposed procedural rules
C) hold every portion of a business meeting open to public attendance
D) hold every portion of a business meeting behind closed doors
81) The Federal Tort Claims Act of 1946 requires the federal government to ________.
A) file legal actions against corporations violating strict liability torts
B) waive sovereign immunity for the tortious acts of its employees in certain cases
C) measure the cost that a proposed rule would impose on a business
D) hold every portion of a business meeting open to public attendance
82) Which of the following laws states that a regulation cannot take effect until at least 60
working days have passed since the regulation was promulgated?
A) Federal Register Act of 1933
B) Government in Sunshine Act of 1976
C) Federal Tort Claims Act of 1946
D) Congressional Review Act of 1996
83) Which of the following statutes contains the Code of Federal Regulations (CFR)?
A) The Government in Sunshine Act
B) The Federal Privacy Act
C) The Federal Register Act
D) The Freedom of Information Act
84) The power of administrative agencies is limited by the executive branch through ________.
A) the oversight power of the U.S. Congress
B) investigative powers of the U.S. Congress
C) presidential executive orders
D) the power of the president to remove the heads of the agencies
85) Which of the following is true of Executive Order 12291?
A) It provides adjudicatory hearings to respondents who apply for such hearings.
B) It extends the powers of the Office of Management and Budget so that it now has authority
over “pre-rulemaking action” by executive agencies.
C) It requires executive agencies to perform a cost-benefit analysis of regulations before
promulgating a major federal regulation.
D) It requires executive agencies to use informal, instead of formal, hearings for most regulatory
proceedings.
86) The authority of administrative agencies is limited by the legislative branch through the
power of the ________.
A) U.S. Congress to terminate an agency
B) U.S. Congress to appoint administrative law judges
C) U.S. president to remove the heads of the agencies
D) Office of Management and Budget to recommend a fiscal-year budget for each agency
87) The greatest legislative limitation on agency power lies in ________.
A) Congress’s power to investigate all claims made against an agency or its officials
B) Congress’s power of oversight over agencies to ensure that they have carried out their
mandated functions
C) Congress’s ability to limit the authority of administrative agencies
D) Congress’s right to approve or disapprove an agency budget submitted by the executive
branch
88) Agencies are exempted from holding open hearings when proceedings concern military
matters or foreign affairs.
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89) The Congressional Review Act of 1996 requires each agency to make available for copying
on request such items as staff manuals, staff instruction orders, and adjudicated opinions, as well
as interpretations of policy statements.
90) The power of administrative agencies is limited by the executive branch through the power
of the president to appoint the heads of the agencies.
91) Explain how the power of administrative agencies is limited by the executive branch of the
government.
92) Agencies that regulate state-chartered banks, worker’s compensation, state universities, and
state taxes are assigned duties by the ________.
A) administrative law judges of the state
B) state legislature
C) judicial branch of the government
D) president and Congress
93) Administrative agencies such as real estate planning boards, zoning commissions, and
supervisory boards operate on the ________ level.
A) state
B) federal
C) international
D) city and county
94) Which of the following statements is true of state and local administrative agencies?
A) When federal and state agency laws conflict, the Supremacy Clause of Article VI of the U.S.
Constitution plays a decisive role.
B) State and local administrative agencies have been created by only 25 states of the United
States.
C) Real estate planning boards, zoning commissions, and supervisory boards operate at the state
level.
D) Agencies that regulate state-chartered banks are assigned duties by Congress, but governed by
the state legislature.
95) Most states have utilities commissions, or the equivalent, that regulate local and in-state
telephone rates.
96) List and discuss examples of state and local administrative agencies.
97) Which of the following is a self-avowed goal of the Financial Services Authority (FSA)?
A) to maintain confidence in the global financial system
B) to promote the government’s understanding of the financial system
C) to help reduce financial crime
D) to secure the right degree of protection for administrative agencies
98) Which of the following statements is true of the Financial Services Authority (FSA) of the
United Kingdom?
A) It is a governmental body whose board of directors is appointed by the president.
B) It oversees transactions and demands ethical and legal conduct from firms.
C) It utilizes government funding that must be approved by the British Parliament.
D) It has to coordinate with other governmental bodies to regulate trading exchanges.
99) In the United States, banks are regulated by the Financial Services Authority (FSA).
100) Discuss the United Kingdom’s Financial Services Authority (FSA).