Chapter 23 Government Regulation and Administrative Law PowerPoint Slides to accompany The Legal Environment of Business and Online Commerce 5E, by Henry R. Cheeseman Chapter 23 Government Regulation and Administrative Law Prentice Hall © 2007

Administrative Agencies Administrative agencies are created by federal, state, and local governments. When Congress enacts a statute, it often designates an administrative agency or creates a new one to administer and enforce the statute. Prentice Hall © 2007

Federal Administrative Agencies Federal administrative agencies are part of the executive or legislative branch of the federal government. Some are created by the President to help operate the government; for example, the Justice Department and the Department of Labor. Prentice Hall © 2007

General Government Regulation Many agencies regulate businesses and industries collectively. Examples include the National Labor Relations Board (NLRB) and the Occupational Safety and Health Administration (OSHA). Prentice Hall © 2007

Specific Government Regulation Some agencies regulate specific industries. Examples include the Federal Communications Commission (FCC) and the Federal Aviation Administration (FAA). Prentice Hall © 2007

Administrative Law Administrative law is a combination of substantive and procedural law. The Administrative Procedure Act (APA) establishes procedures for federal administrative agencies. An Administrative Law Judge (ALJ) presides over the proceedings. Prentice Hall © 2007

Administrative Agency Powers Delegation doctrine – an agency has only the legislative, judicial, and executive powers delegated to it. Rule making powers Substantive rules Interpretive rules Statements of policy Prentice Hall © 2007

Administrative Agency Powers Licensing power Judicial power Many agencies have authority to adjudicate cases. Agencies must comply with Due Process Clause. Proper and timely notice must be given to the respondent. There must be an opportunity for the respondent to present evidence. Prentice Hall © 2007

Administrative Agency Powers Executive power Agencies usually have power to investigate and prosecute. May issue administrative subpoenas Administrative searches are subject to Fourth Amendment protection against unreasonable searches and seizures. Prentice Hall © 2007

Judicial Review of Administrative Agency Actions Many federal agency decisions may be appealed to a federal court. Standards for judicial review Questions of law – court may substitute its judgment for that of the agency Questions of fact – court usually defers to agency’s findings Prentice Hall © 2007

Disclosure of Administrative Agency Actions Freedom of Information Act Federal agencies must publish procedures, rules, regulations. Government in the Sunshine Act Most federal administrative agency meetings must be open to the public. Prentice Hall © 2007

Disclosure of Administrative Agency Actions Equal Access to Justice Act A private party who is subject to unjustified federal administrative agency action can sue to recover attorney’s fees and other costs. Privacy Act Federal administrative agencies can maintain only information about an individual that is relevant and necessary to accomplish a legitimate purpose. Prentice Hall © 2007