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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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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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A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is


A) adjudication.
B) declaration.
C) rulemaking.
D) investigation.

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

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Preventing agencies from abusing their powers without hindering the agencies as they carry out their duties is not a governmental concern.

A) True
B) False

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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 B)
F) A) and C)

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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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Final rules do not have binding legal effect until the courts confirm them.

A) True
B) False

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The procedures used by administrative agencies in fulfilling their basic functions is known as


A) the procedural process.
B) the legislative process.
C) the administrative process.
D) the executive process.

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

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

Correct Answer

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Administrative agencies can conduct searches without warrants in


A) all industries.
B) highly regulated industries.
C) no industries.
D) newly regulated industries only.

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

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During an administrative hearing, the parties may


A) give testimony.
B) present evidence.
C) cross-examine witnesses.
D) all of the choices.

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

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Organic Frozen Foods Corporation is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of


A) administrative law.
B) legislative law.
C) executive law.
D) judicial law.

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

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Notice-and-comment rulemaking involves regulators noticing a situation that lacks a rule, commenting on it, and then issuing a rule.

A) True
B) False

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There is no single federal office directed to receive comments from small businesses about their dealings with federal agencies.

A) True
B) False

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Under the Administrative Procedure act, a party seeking judicial review of an agency decision must first exhaust all administrative remedies.

A) True
B) False

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An informal agency action can be important because it warns regulated entities that the agency may engage in formal rulemaking if its informal policy is ignored.

A) True
B) False

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Although executive agencies exist within the cabinet departments of the executive branch, they are not subject to the authority of the president.

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

Correct Answer

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Media Report seeks information about well-known businesspersons under the Freedom of Information Act. To obtain the information, Media Report must


A) agree not to reveal any trade secrets.
B) reasonably describe the information.
C) get a court order.
D) obtain the businesspersons' consent.

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

Correct Answer

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Because federal agency rules have a binding effect, and their violators may be punished, certain established procedures must be followed in creating them.

A) True
B) False

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