CHAPTER FIVE
True-False
Any element of falsity renders the statement false.
1. The “Government-in-the-Sunshine” law prohibits certain agency meetings from being held in
secret.
2. The Administrative Procedure Act (APA) allows judicial review of most agency action.
3. The validity of regulations depends on certain strict requirements being met, including that the rule
is consistent with the U.S. Constitution.
4. The types of rules that an agency may create include regulations, interpretative rules, procedural
rules, and standards.
5. An agency that derives it power solely as an extension on one branch of government, and is
controlled by that branch of government is not an independent administrative agency.
6. During the decades of the ‘60s and ‘70s, the third major wave of administrative law development
occurred.
7. Administrative agency rulings affect business firms, but not individual persons.
8. By definition independent administrative agencies operate apart from the traditional legislative-
executive-judicial branches of government, yet possess powers normally exercised by all three
branches.
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9. The first major independent administrative agency created at the federal level was the Veteran’s
Administration.
10. Important moves to deregulate the airline, railroad, trucking, communications (radio, television, and
telephone) and energy industries portend an end to the administrative agencies that have regulated
these fields in the past.
11. The National Labor Relations Board is charged with investigating and protecting against
discrimination in the work place.
12. The Securities and Exchange Commission responsibilities include investigating and regulating the
financial reporting of publicly traded companies.
13. Independent agencies are led by officials who cannot be dismissed by the president, except for
cause.
14. An independent administrative agency does not have unlimited power, its authority is limited by its
enabling statute.
15. Regulations adopted by federal administrative agencies are published regularly in the Federal
Register.
16. Traditional rules of procedural law (e.g., the exclusion of hearsay evidence) as applied in court
trials need not be followed in administrative hearings. However, all litigants must be assured
fundamental due process of law.
17. Administrative agencies often exercise judicial, executive, and legislative powers.
Test Bank 3
18. Executive functions of an administrative agency might include the power to investigate and to seek
fines for violations of administrative regulations.
19. Rulemaking is akin to a legislative power, whereas administrative hearings are akin to adjudication.
20. Administrative agencies apply much stricter standards regarding the admission of evidence in
hearings than do the courts.
21. Administrative agencies are the primary interpreters and enforcers of many statutes that focus on
business regulation.
22. Issues of due process often arise when administrative agencies apply their rules in ways that
concern property or other important rights affected by government.
23. It is unconstitutional for the legislative branch of government to delegate power to the executive
branch.
24. The Department of Education is an independent administrative agency.
25. If the Environmental Protection Agency created a requirement that all automobile owners in the
United States subject their vehicles to strict emissions testing and limits, the adoption those
requirements would be rulemaking and could not occur without an opportunity for vehicle owners
to comment on the requirement before it was adopted.
Fill-ins
Complete each sentence or statement.
1. Inspections of nuclear reactors at utility plants do not require a(n) __________________ before an
involuntary agency inspection.
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2. The __________________ is given the power to regulate discrimination in the work place.
3. If a court has the power to conduct a new proceeding when reviewing an administrative action it is
referred to as a(n) __________________.
4. A plaintiff must have __________________ to contest an administrative action in court.
5. A(n) __________________ federal administrative agency is led by officials who cannot be
dismissed by the president except for cause.
6. A(n) __________________ is a government employee who is appointed to hear administrative cases.
7. An administrative agency begins when a(n) __________________ is passed by Congress, and
signed by the president, creating the administrative agency.
8. The ________________, provides mandatory guidelines to be followed by most federal
administrative agencies in carrying out their assigned missions.
9. The _________________ is the official publication of the federal government for all agency
regulations.
10. The APA allows a court to prevent or undo any unauthorized action by an agency through
_________________ of most agency actions.
11. The _________________ law prohibits secret agency meetings.
12. The _________________ requires the federal government to disclose most “records” to “any
person” on request.
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13. Courts are reluctant to interfere with the regulatory process, hoping the agency will correct its own
mistakes. This policy requires a complaining claimant to exhaust all available _________________
before resorting to the courts for relief.
14. The power to _________________ records is one of the important investigative tools available to
administrative agencies.
15. Federal administrative agencies are often empowered with a combination of _________________,
_________________, and _________________ powers to accomplish the work of government with
greater efficiency than would be possible if the tasks were performed directly by the Congress.
16. The first major independent administrative agency was the _________________, created in 1887 to
end certain abuses common in the railroad industry.
17. Rules or __________________ promulgated by an administrative agency under authority given to
the agency by the enabling statute.
18. The agency gave a ________________, to forbid the companies continuation of the misleading
advertising.
19. The process of _________________ is the eliminating, reducing or restructuring the control of an
industry.
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Multiple Choice
Select the one best answer.
1. The Federal Trade Commission (FTC) was created by the Federal Trade Commission Act of 1914.
The act prohibits unfair and deceptive trade practices, describes the procedures the agency must
follow to charge violators, provides for judicial review of agency actions, provides the power to
investigate, and the power to make rules and regulations. The law creating this agency is called a(n)
a. Administrative Procedure Act.
b. Constitution.
c. enabling statute.
d. due process requirement.
2. The right to qualified representation in an administrative hearing is important. Which is the correct
statement about such representation in administrative hearings?
a. Most administrative hearings will not allow a party to be represented by counsel.
b If the person cannot afford representation, all agencies will provide it.
c. Most administrative hearings will allow a party to be represented by counsel.
d. If counsel or representation is allowed, then a party must use an attorney.
3. A de novo review is
a. an appeal on the record.
b. an entire new proceeding following an initial decision by an administrative agency.
c. an appeal before the highest hearing body.
d. review by the president.
4. Federal agency rule-making powers are governed primarily by
a. the Freedom of Information Act.
b. circuit court judges.
c. the Administrative Procedure Act.
d. administrative law judges.
5. Many administrative agencies are delegated quasi-adjudicative authority. This authorizes agencies to
a. decide cases or disputes between private parties and government.
b. propose internal guidelines that have the force of law when finally approved.
c. propose rules and regulations and hold hearings concerning their appropriateness.
d. not do any of these things.
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6. Official notice of a proposed regulation from an administrative agency is published in the
a. Federal Register.
b. Administrative Procedure Protocol.
c. National Law Journal.
d. Wall Street Journal.
7. Which two administrative agencies at the federal level share jurisdiction to enforce laws against
monopoly, price fixing, and various unfair trade policies?
a. the Civil Rights Commission and the Justice Department
b. the Federal Aviation Administration and the National Labor Relations Board
c. the Civil Rights Commission and the Equal Employment Opportunity Commission
d. the Federal Trade Commission and the Antitrust Division of the Justice Department
8. In the landmark case of Goldberg v. Kelly, Kelly was a New York City resident receiving welfare
aid under the federal program, Aid to Families with Dependent Children (AFDC). The New York
City Social Service agency terminated her benefits. The agency told Goldberg that she could
request a formal hearing after her benefits were terminated. She sued claiming she had a right to a
hearing before her AFDC benefits were terminated. The U.S. Supreme Court held
a. as welfare benefits provide food, clothing, and shelter, Kelly had a “due process” right to a
hearing before termination.
b. as welfare benefits are not a property owned by Kelly, she did not have a right to a hearing
prior to the revocation of welfare benefits.
c. that Kelly had a right to a hearing before the Supreme Court before welfare benefits could be
denied.
d. that Kelly had a right to a hearing 30 days after the termination of welfare benefits to determine
if the agency had applied the qualification rules correctly.
9. Agency power is balanced by certain available external controls. They include
a. judicial power to review agency actions.
b. the ability of a state government to veto unconstitutional federal action.
c. the United Nations Security Council.
d. Government-in-the-Sunshine laws.
10. Independent administrative agencies, such as the National Labor Relations Board (NLRB), are
subject to constraints by the
a. legislature, which may restrict, modify, or eliminate the agency.
b. executive, which may affect the philosophy of the agency’s governing board through the
appointment of members.
c. judiciary, which may overrule decisions of the agency as arbitrary and/or unconstitutional.
d. all of the above
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11. Which independent administrative agency regulates working conditions in privately owned
factories and other work places?
a. Office of Safety and Health Administration (OSHA)
b. Federal Trade Commission (FTC)
c. Environmental Protection Agency (EPA)
d. Federal Communications Commission (FCC)
12. Which of the following is a basic function of most administrative agencies?
a. investigation
b. enforcement
c. rulemaking
d. all of the above
13. Many federal and state agencies gather information through on-site inspections. Sometimes a search
of a home, an office, or a factory is a way to get evidence to prove a regulatory violation. In
connection with these inspections, and the constitutional right to freedom from illegal search and
seizure,
a. administrative agencies, like the police, must generally (but not always) comply with the search
and seizure provisions of the Fourth Amendment.
b. the Fourth Amendment prohibitions against illegal search and seizure do not apply to
administrative agencies and they can generally search without a warrant.
c. the Fourth Amendment applies to administrative agencies, but it does not apply to civil servants
and so they are free to search without a warrant.
d. agencies need a search warrant only when they intend to follow their administrative actions
with a criminal prosecution.
14. Judge Henry Friendly identified eleven attributes of a fair hearing. Which one of the following is
not among those discussed by Judge Friendly?
a. an unbiased tribunal
b. right to a jury trial
c. right to call witnesses
d. statement of reasons for the decision
15. An administrative agency may have the power to
a. impose civil sanctions.
b. impose criminal sanctions.
c. amend a constitution.
d. deny the authority of a lawful court order.
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16. Critics of regulatory agencies generally object to agency rules and restrictions for all except which
one of the following reasons?
a. too loyal to Congress
b. voluminous paperwork
c. high cost of compliance with agency rules
d. bureaucratic red tape
17. Which of the following was not one of the reasons why the Interstate Commerce Commission was
created by Congress?
a. There was frenzied railroad financing.
b. Railroad rates discriminated among shippers.
c. The transcontinental railroad needed completion.
d. Cutthroat competition between eastern and western railroads affected profits.
18. Which is the most recent innovation in the method by which an agency creates regulations?
a. The agency invites representatives of all concerned parties, usually businesses, to meet to assist
the agency in drafting the proposed rule. This process is called negotiated rule making.
b. The agency staff studies the problem and reaches a tentative solution, publishing it in P.
Richards Almanac as a proposed rule, giving the public the opportunity to comment before
federal district courts.
c. The agency holds a hearing asking each competing interest to present a draft of the proposed
regulation. The agency considers each draft as well as supporting testimony and selects the best
from among those submitted.
d. Congress includes the regulations in the National Agency Empowerment statute.
19. A fair hearing before an administrative agency should include all of the following except
a. an opportunity to be aware of the evidence against you.
b. the right to counsel.
c. a formal record of the proceedings.
d. an automatic right to a new trial if you are the losing party at an administrative hearing.
20. During which presidential administration was there the greatest expansion of governmental
regulation?
a. William J. Clinton
b. George W. Bush
c. Franklin D. Roosevelt
d. Richard M. Nixon
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21. Which of the following is an incorrect statement about agency rules and regulations?
a. Interpretive rules are statements and opinions issued by an agency, explaining how the agency
interprets and intends to apply the law it enforces.
b. Interpretive rules do not have the force of a rule of law.
c. Interpretive rules have the same force as a rule of law.
d. Procedural rules describe an agency’s methods of operation and establish procedures for
dealing with the agency.
22. Which of the following is true about administrative hearing officers (and administrative law judges)
and the work they perform?
a. They have never worked for the very agency that is prosecuting the case that they will
ultimately decide.
b. Private communication between the administrative law judge and anyone who is a party to an
agency proceeding is encouraged.
c. An administrative law judge is a private accountant appointed to hear administrative cases.
d. administrative law judges are usually attorneys.
23. Ideally, members of regulatory boards should be experts on the problems of the industry being
regulated, therefore staff members and board members are
a. often recruited from the industry being regulated.
b. temporary appointees and often return to the industry being regulated after serving in the
administrative agency.
c. frequently paid more in private industry than as employees of regulatory agencies.
d. all of the above
24. The law that requires the federal government to disclose most “records” to “any person” on request
is called the
a. Administrative Procedure Act.
b. Regulatory Flexibility Act.
c. Government-in-the-Sunshine Act.
d. Freedom of Information Act.
25. The first major independent administrative agency was the
a. Interstate Commerce Commission (ICC).
b. Securities and Exchange Commission (SEC).
c. Federal Communications Commission (FCC).
d. National Labor Relations Board (NLRB).
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26. Which of the following is not currently regarded as a viable method of imposing accountability on
administrative agencies?
a. the political influence of Congress and the president
b. the “legislative” veto whereby one house of Congress can override agency rulemaking
c. “sunshine” laws
d. judicial review
27. Which of the following is not a characteristic of an independent administrative agency?
a. The members of the governing board or commission are appointed for life.
b. The agency derives power from an enabling statute.
c. The agency has powers similar to or derived from all three branches of government
d. The agency is subject to judicial review of its decisions and actions by the judiciary.
Short Answer Essays
1. Distinguish between an independent administrative agency and an executive department.
2. Describe the major powers of a typical administrative agency.
3. Briefly explain the degree and type of control that each branch of the federal government
(legislative, executive, and judicial) has over independent administrative agencies.
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4. Identify three bases by which a party can seek judicial review of adverse agency action.
5. Discuss the arguments for a systematic reduction in regulation by government agencies.
6. Explain in what ways universities and colleges engage in behavior analogous to that of regulatory
agencies. (Students are generally aware of regulatory and controlling behavior in their own college
or university.)
7. Joy had received five speeding tickets within one year. She was notified by her state’s Department
of Motor Vehicles that her license was suspended for six months but that she could appeal the
suspension before a department hearing officer. Joy immediately filed a lawsuit claiming the
suspension of her license violated her constitutional rights. Will her lawsuit be allowed?
8. Explain what role administrative law and administrative agencies have had or will have in
protecting the environment. Why is that role practically necessary?
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8. In a society such as ours that promotes the primacy of free market economics (free enterprise), why
do we have a regulatory agency such as the Federal Trade Commission?
9. Distinguish between an administrative agency’s interpretive and procedural rules.