Chapter 44
Administrative Law
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. Administrative law is created by administrative agencies, not by legislatures.
B2. State regulation, when not preempted, may regulate independently the activities that
federal regulation does not cover.
B3. By delegating some of its authority to make and implement laws, Congress violates
the U.S. Constitution.
B4. Independent regulatory agencies include the cabinet departments of the executive
branch.
B5. Interpretive rules simply declare policy and do not affect legal rights or obligations.
B6. A party seeking court review of an administrative action must first exhaust all of his or
her administrative remedies before seeking court review.
B7. There is a precise definition of what makes an administrative rule arbitrary and
capricious.
B8. Unlike those who violate statutes, violators of agency rules are not punished.
B9. Final administrative rules do not have binding legal effect unless the courts later
declare them to be binding.
B10. Only experts can submit comments on a proposed administrative rule.
B11. If the meaning of a statute’s language is unclear and an agency interprets it, a court
must follow the interpretation as long as it is reasonable.
B12. An administrative agency can issue a guidance document to advise the public on the
agency’s legal and policy position.
B13. Often, an administrative agency enforces it own rules.
B14. If a business firm refuses to comply with an agency’s request to inspect facilities or
business records, the agency must defer to the refusal.
B15. Administrative agencies can conduct warrantless searches in some situations.
B16. Administrative agencies generally exercise substantial discretion over the type of
hearing procedures that they use.
B17. An administrative adjudicatory hearing does not have to meet the constitutional
standards of due process.
B18. All federal government agencies must make their records available electronically on
the Internet.
B19. The public must be provided with adequate advance notice of scheduled federal
administrative agency meetings and agendas.
B20. Federal agencies must consider ways to reduce the economic impact of new
regulations on small businesses.
MULTIPLE CHOICE QUESTIONS
B1. 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.
B2. Persons who favor the creation of a federal biotech agency to regulate the production
of genetically altered agricultural products should concentrate their lobbying efforts
on
a. Congress.
b. federal administrative agencies that oversee agricultural products.
c. the United States Supreme Court.
d. the president of the United States.
B3. 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.
B4. 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. the gap-filling power.
d. unconstitutional conduct.
B5. 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.
B6. 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.
B7. 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.
B8. The U.S. Department of Homeland Security issues a rule. Like the rules of other
federal administrative agencies, this rule is compiled in
a. the Administrative Register of the Federal Government.
b. the Code of Federal Regulations.
c. the Federal Rules of Civil Procedure.
d. the United States Code.
B9. 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. never defer to an agency’s interpretation of law.
B10. 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.
B11. The U.S. Patent and Trademark Office (USPTO) wants to review certain records of
Verity Corporation. The USPTO can legitimately gain access to the records through
a. agency coercion.
b. infiltrating Verity’s computers without the firm’s knowledge.
c. public comment.
d. Verity’s consent.
B12. 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 subpoena.
d. a politely worded request.
B13. 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.
B14. The functions of the Social Security Administration, like those of other administrative
agencies, include
a. adjudication.
c. declaration.
b. enunciation.
d. pronunciation.
B15. 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.
B16. 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.
B17. 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 that
a. attorneys are not allowed to attend administrative hearings.
b. clients are not allowed to communicate with their attorneys during adminis-
trative hearings.
c. hearsay can be introduced as evidence in an administrative hearing.
d. the burden of proof is on the charged party to prove innocence.
B18. Jay seeks information about Kim and other well-known businesspersons under the
Freedom of Information Act. To obtain the information, Jay must
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 actions.
c. the subject of the meeting involves matters relating to future litigation or
rulemaking.
d. all of the choices.
ESSAY QUESTIONS
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?