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Persons who favor the creation of a federal agency to regulate the production of genetically modified agricultural products should concentrate their lobbying efforts on


A) Congress.
B) administrative agencies that oversee agricultural products.
C) the United States Supreme Court.
D) the president of the United States.

E) None of the above
F) A) and B)

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The Environmental Protection Agency (EPA) wants Waste Disposal Company to produce certain records for review. The EPA can gain access to the records through


A) an order for specific performance.
B) a rule for parol evidence.
C) a formal complaint.
D) a subpoena.

E) C) and D)
F) A) and B)

Correct Answer

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The Financial Stability Oversight Council was created in response to a financial crisis to


A) identify and respond to emerging risks in the financial system.
B) protect consumers from abusive practices by financial institutions.
C) issue rules to cover almost every aspect of a business's operation.
D) reduce the number and authority of business financial regulations.

E) C) and D)
F) None of the above

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The purpose of negotiated settlements in disputes over administrative actions is to obtain funds to defray the agency's operating costs.

A) True
B) False

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The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except


A) measure the cost that the rule will impose on small businesses.
B) consider less burdensome alternatives.
C) alert small businesses about forthcoming regulations.
D) adjust the rule to the satisfaction of the regulated businesses.

E) A) and B)
F) B) and C)

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Data Inc. 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) a court, through the adjudicatory process.
C) an administrative agency, through administrative regulations.
D) the president, through an executive order.

E) B) and C)
F) A) and D)

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Tim is a witness in a controversy involving the U.S. Bureau of Tobacco and Firearms. Tim can be compelled to appear before an administrative law judge if he is served with


A) an order for specific performance.
B) an executive order.
C) a subpoena.
D) a search warrant.

E) None of the above
F) A) and B)

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Administrative regulations have benefits, but the benefits can entail considerable costs for business.

A) True
B) False

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Notice-and-comment rulemaking involves a period during which


A) judges, legislators, and the president are asked about a proposed rule.
B) potential violators of a proposed rule are notified and publicized.
C) the administrators "notice" a problem and "comment" on it.
D) the public is asked to comment on a proposed rule.

E) None of the above
F) A) and C)

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Retail Stores Inc. pays taxes collected by the appropriate state agencies. Like other state administrative agencies, these agencies were created by


A) a state legislature, through an enabling act.
B) a state court, through the adjudicatory process.
C) a federal administrative agency, through administrative regulations.
D) the state governor, through an executive order.

E) A) and D)
F) A) and C)

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After final rules are issued, administrative agencies no longer conduct investigations of the entities that they regulate.

A) True
B) False

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Independent regulatory agencies such as the Federal Communications Commission are


A) not part of the government's executive branch.
B) outside the federal executive departments.
C) subagencies within the cabinet departments.
D) cabinet departments within the executive branch.

E) A) and C)
F) B) and C)

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An administrative law judge does not have the power to rule on questions of evidence or to make determinations of fact.

A) True
B) False

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The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of


A) no government official or entity.
B) the president.
C) state legislatures.
D) the U.S. Attorney General

E) A) and D)
F) B) and D)

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Interested parties are not given the opportunity to express their views on a proposed rule because their efforts might influence agency policy.

A) True
B) False

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The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can


A) issue a formal complaint.
B) do nothing.
C) take the matter to the U.S. Supreme Court.
D) immediately impose sanctions.

E) None of the above
F) B) and D)

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On review of an agency's interpretation of the law, a court is likely to defer to the agency's view, unless the court would have interpreted the law differently.

A) True
B) False

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Legislatures create statutory law and administrative law.

A) True
B) False

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An agency must conduct a regulatory flexibility analysis whenever a new regulation will significantly impact a substantial number of small businesses.

A) True
B) False

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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?

Correct Answer

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Omega cannot ask a court for an injuncti...

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