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CHAPTER 23: ADMINISTRATIVE AGENCIES 17
whole or in part.
whole or in part.
CHAPTER 23: ADMINISTRATIVE AGENCIES 21
Because an administrative law judge (ALJ) acts as both judge and jury, there should always be at
least three ALJs in each administrative hearing. It is unfair to give an ALJ so much power within any
administrative agency. After all, each ALJ works for the administrative agency that she or he is supposed to
judge in any dispute. How can we assume that an ALJ will be unbiased? There will always be a tenancy for
ALJs to favor the actions of administrative agencies. There is at least a chance of more unbiased decisions if
at least three ALJs hear each case.
The system of ALJs has worked well for decades, so now is not the time to change it. In any event, ALJs
frequently rule against the agencies for which they work. Besides, when a party to an ALJ’s decision doesn’t
like the outcome, that party can always appeal the decision in federal court, which happens quite often.
Finally, the cost of tripling the number of ALJs would be prohibitive, especially with the federal government
running such huge budget deficits.
EXAMPREP—
ISSUE SPOTTERS
1. The U.S. Department of Transportation (DOT) sometimes hears an appeal from a party whose
contract with the DOT has been canceled. An administrative law judge (ALJ), who works for the DOT,
hears this appeal. What safeguards promote the ALJ’s fairness? Under the Administrative Procedure Act
(APA), the administrative law judge (ALJ) must be separate from the agency’s investigative and prosecutorial
staff. Ex parte communications between the ALJ and a party to a proceeding are prohibited. Under the APA,
an ALJ is exempt from agency discipline except on a showing of good cause.
2. Techplate Corporation learns that a federal administrative agency is considering a rule that will
have a negative impact on the firm’s ability to do business. Does the firm have any opportunity to
express its opinion about the pending rule? Explain. Yes. Administrative rulemaking starts with the
publication of a notice of the rulemaking in the Federal Register. A public hearing is held at which proponents
and opponents can offer evidence and question witnesses. After the hearing, the agency considers what was
presented at the hearing and drafts the final rule.
whole or in part.
whole or in part.
CHAPTER 23: ADMINISTRATIVE AGENCIES 21
Because an administrative law judge (ALJ) acts as both judge and jury, there should always be at
least three ALJs in each administrative hearing. It is unfair to give an ALJ so much power within any
administrative agency. After all, each ALJ works for the administrative agency that she or he is supposed to
judge in any dispute. How can we assume that an ALJ will be unbiased? There will always be a tenancy for
ALJs to favor the actions of administrative agencies. There is at least a chance of more unbiased decisions if
at least three ALJs hear each case.
The system of ALJs has worked well for decades, so now is not the time to change it. In any event, ALJs
frequently rule against the agencies for which they work. Besides, when a party to an ALJ’s decision doesn’t
like the outcome, that party can always appeal the decision in federal court, which happens quite often.
Finally, the cost of tripling the number of ALJs would be prohibitive, especially with the federal government
running such huge budget deficits.
EXAMPREP—
ISSUE SPOTTERS
1. The U.S. Department of Transportation (DOT) sometimes hears an appeal from a party whose
contract with the DOT has been canceled. An administrative law judge (ALJ), who works for the DOT,
hears this appeal. What safeguards promote the ALJ’s fairness? Under the Administrative Procedure Act
(APA), the administrative law judge (ALJ) must be separate from the agency’s investigative and prosecutorial
staff. Ex parte communications between the ALJ and a party to a proceeding are prohibited. Under the APA,
an ALJ is exempt from agency discipline except on a showing of good cause.
2. Techplate Corporation learns that a federal administrative agency is considering a rule that will
have a negative impact on the firm’s ability to do business. Does the firm have any opportunity to
express its opinion about the pending rule? Explain. Yes. Administrative rulemaking starts with the
publication of a notice of the rulemaking in the Federal Register. A public hearing is held at which proponents
and opponents can offer evidence and question witnesses. After the hearing, the agency considers what was
presented at the hearing and drafts the final rule.
