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Exam 40: Administrative Agencies

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Question 21

Multiple Choice

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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) All of the above
F) C) and D)

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Question 22

Multiple Choice

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Delta Water Company is subject to a decision by the Environmental Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision

A) changed the agency's prior policy without justification.
B) followed a consideration of all legally appropriate factors.
C) was accompanied by a rational explanation.
D) was plainly warranted by the evidence.

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

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Question 23

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The president can limit the power of an administrative agency through the power to appoint its officers.

The Securities and Exchange Commission (SEC) wants to review certain documents of Trade Funds Inc. Whether it is permissible for the SEC to request or review the documents depends on whether the documents are

A meeting of a federal agency must be open to public observation if the meeting involves matters relating to future litigation or rulemaking.

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

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

Independent regulatory agencies such as the Federal Communications Commission are

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.

Closed meetings of the U.S. Bureau of Land Management, a federal administrative agency, are permitted when

Guitar Gear Inc. makes guitars. The Occupational Safety and Health Administration (OSHA)proposes a safety rule governing the handling of wood and its dust in the workplace, including the woods that Guitar Gear uses in its operations. Guitar Gear contends that the rule will involve substantial compliance costs without significantly increasing workplace safety. The firm sends a letter to OSHA indicating its objections to the proposed rule and enclosing research reports and other data supporting those objections. Does OSHA have any obligation to consider these objections? What procedures must OSHA follow when it makes new rules, such as this one?

New administrative agencies are rarely created in response to a crisis.

The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is

The Federal Emergency Management Agency (FEMA) discovers that Rescue Inc. is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be

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

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

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

Data Inc. pays income and other taxes collected by the Internal Revenue Service (IRS) . Like other federal administrative agencies, the IRS was created by

When a state administrative regulation conflicts with a federal administrative regulation