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Exam 44: Administrative Law

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Question 31

Multiple Choice

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Which of the following is true regarding the claim of ABC Co.that agencies have no power to issue rules containing criminal penalties?

A) ABC Co.is correct.
B) ABC Co.is incorrect,and the Animal Protection Commission can enforce criminal penalties.
C) ABC Co.is incorrect,but any criminal penalties enforced by an agency may not exceed a fine of $1,000.
D) ABC Co.is incorrect regarding its claim that all agencies lack the authority to enforce a criminal penalty,but correct in that the Animal Protection Commission cannot enforce a criminal penalty because an agency can only enforce a criminal penalty if human health or national security is involved.
E) ABC Co.is incorrect,but any criminal penalties enforced by an agency may not exceed a fine of $10,000.

F) A) and B)
G) B) and E)

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Question 32

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Informal rule making is the primary type of rule making used by administrative agencies.

A) True
B) False

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Question 33

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[New Agency] Ruth just got a job as an assistant in a new federal agency called the Accounting Commission,which was set up to regulate the accounting and auditing profession.The agency is headed by commissioners who serve for fixed terms and can be removed only for cause.No more than a majority of the commissioners may be from the same political party.The agency is getting ready to issue rules.The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules.Ruth's boss,Odette,gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process.Odette also told her that at this point she was not very interested in hybrid rule making. -Which of the following is the appropriate agency classification for the Accounting Commission?

________ create[s] more rules than ________ and the courts combined.

Which of the following consists of the substantive and procedural rules created by administrative agencies involving applications,licenses,permits,available information,hearings,appeals,and decision making?

is an order issued by an agency to appear at a particular time and place and provide testimony.

In the text case Perez v.Mortgage Bankers Association,the Department of Labor withdrew an opinion letter and issued an Administrator's Interpretation.The plaintiff filed suit claiming the Administrator's Interpretation was procedurally invalid based on prior case law which holds that an agency must use the APA's notice-and-comment procedures when it wishes to issue a new interpretation of a regulation that deviates significantly from a previously adopted interpretation.Which of the following was the result?

Which statement is correct regarding types of powers administrative agencies have?

Which of the following has the power to dissolve a federal agency?

________ are the most common types of rule making done by agencies.

Administrative agencies are sometimes called the unofficial "fourth branch of government."

[Disputed Dominion] Congress set up a new agency to more closely regulate testing of personal and cosmetic products on animals.Legislation was passed naming the agency the "Animal Protection Commission," and setting forth the function of the agency and its specific powers.Congress provided the agency with the power to make rules,investigate violations,and adjudicate charges of wrongdoing.The agency proceeded to properly give notice and issue rules.The rules provided for civil as well as for criminal penalties.Agency personnel issued an order for ABC Co.to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing.ABC Co.resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents.ABC Co.also claimed that agencies do not have the power to impose criminal penalties.The agency proceeded to issue a ruling that ABC Co.cease all activity based upon its refusal to cooperate. -Which of the following is the correct term for legislation passed by Congress specifying the name,functions,and specific powers of the Animal Protection Commission?

________ rules do not create any new rights or duties,but are rather step-by-step statements of what actions a party must take to be considered in compliance with an existing law.

Exemption rule making allows an agency to decide whether public participation will be allowed.Exemptions include rule-making proceedings with regard to all but which of the following?

Which of the following would not be published in the Federal Register?

________ was the first federal administrative agency created.

Executive agencies are referred to as ________.

An example of an executive agency is the Small Business Administration.

________ rules are rules that explain how the agency views the meaning of the statutes for which the agency has administrative responsibility.

[License Challenge] Talia was licensed by her state to train massage therapists.The state-licensing agency,the Aesthetic and Massage Commission,took very seriously its role of enforcing the state statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith,incompetence,dishonesty,or improper dealing." Rules were passed authorizing the agency to revoke the license of anyone found guilty of such acts or conduct.While driving home late one night from a party,Talia was stopped by police and arrested for driving under the influence of alcohol.She pled guilty to the offense.When the Aesthetic and Massage Commission discovered the conviction,the officials of the agency met,decided that Talia might drink on the job,and that she might pose a danger to students.Accordingly,her license to teach massage therapy was revoked.Talia threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because,based on her admission of guilt,no factual dispute was involved.The agency official went on to say that even if an appealable issue existed,agency action may only be overturned when there is clear and convincing evidence that the agency exceeded its discretion.The administrative system in Talia's state is identical to the federal system. -Regarding the statement of the agency that Talia had no right to appeal to court,which statement is true?