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Published byVernon Baldwin Modified over 9 years ago
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Administrative law is created by administrative agencies which regulate many areas of our government, community, and businesses. A significant cost of ‘doing business’ requires compliance with administrative and agency laws. 2
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Administrative Agencies Exist at All Levels of Government. Agencies Provide Comprehensive Regulatory Scheme. Many businesses have incentive to influence the regulatory environment. 3
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The study of administrative law requires an understanding of: Enabling Legislation. The Types of Agencies. Agency Powers and the Constitution. 4
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Federal Trade Commission (FTC) granted power to: 1. To create “rules and regulations for the purpose of carrying out the Act.” 2. To conduct investigations of business practices. 5
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FTC granted power to (cont’d): 3. To obtain reports from interstate corporations concerning their business practices. 4. To investigate possible violations of federal antitrust statutes. 6
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FTC granted power to (cont’d): 5. To publish findings of its investigations. 6. To recommend new legislation. 7. To hold trial-like hearings to resolve disputes. 7
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There are two basic types of administrative agencies: Executive Agencies (e.g., EPA and cabinet level) and Independent Regulatory Agencies (e.g., Securities Exchange Commission, Internal Revenue Service). 8
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Agency Powers and the Constitution. Legislative Rules: act as legally binding as laws passed by Congress. Agencies also pass interpretive rules. The Delegation Doctrine. Executive Controls: Presidential veto power. 9
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Agency Powers and the Constitution. Judicial Controls. Exhaustion Doctrine: party seeking court review must first exhaust all administrative remedies before filing suit. Ripeness Doctrine: court will not review administrative decision until it is ‘ripe’ for review. 10
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In the absence of clear Congressional direction, all federal agencies must follow APA procedural requirements in notice, rulemaking, and adjudication. 11
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Arbitrary and Capricious Test: The APA gives courts power to hold agencies’ actions “arbitrary and capricious” if they are not in compliance with constitutional due process. CASE 6.1 FCC v. Fox Television Studios, Inc. (2009). Are the FCC’s indecency rules too ‘vague’? 12
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Rulemaking: formulation of new regulation. Notice and Comment Rulemaking involves three steps: Notice of the Proposed Rulemaking. Comment Period. The Final Rule. Informal Agency Action: exempt from APA, do not establish legal rights. 13
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The Holding of the Chevron Case. Issue was whether courts should defer to an agency’s interpretation of the enabling legislation which gives it authority to act. In Chevron, the EPA interpreted not only the facts, but the law. 14
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Chevron (cont’d). The U.S. Supreme Court held that a federal agency could interpret law with a two prong test: (1) did Congress directly address the issue in a statute? And (2) if the statute is silent, was the agency’s interpretation of the law “reasonable”? 15
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When Courts Will Give Chevron Deference to Agency Interpretation. When the meaning of a statute’s language is unclear, courts must follow agency interpretation if reasonable. 16
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When Courts Will Give Chevron Deference to Agency Interpretation. CASE 6.2 Citizens Committee to Save our Canyons v. Krueger (2008). Why did the court uphold the agency’s decision? 17
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Investigation includes the powers to: Conduct Inspections. Issue Subpoenas. Conduct Site Inspections (including warrantless inspections in certain limited situations such as firearms or liquor). 18
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Adjudication (like a trial before a judge). Negotiated Settlements. Formal Complaints. Role of the Administrative Law Judge. Hearing Procedures. Agency Orders. 19
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A number of pieces of legislation make agencies more accountable through public scrutiny. Freedom of Information Act. Government in the Sunshine Act. Regulatory Flexibility Act. Small Business Regulatory Enforcement Fairness Act. 20
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Freedom of Information Act. Requires federal government to disclose records on request, but denial can be challenged in court. CASE 6.3 United Technologies Corp. v. U.S. Department of Defense (2010). Court ordered a rational connection between facts and choice to deny. 21
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Government in the Sunshine Act. Requires that “every portion of every meeting of an agency” be open to “public observation.” Adequate notice of meetings must be given to the public. Closed meetings are authorized in a limited number of instances. 22
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Regulatory Flexibility Act. Requires an analysis of the cost a regulation will impose on small business and must consider less burdensome alternatives. 23
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Small Business Regulatory Enforcement Fairness Act. Allows Congress to review new federal regulations for at least sixty-days before they can take effect. 24
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