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Exam 3: The Us Legal System and Alternative Dispute Resolution

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Question 21

Multiple Choice

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What types of powers do administrative agencies have?

A) Legislative
B) Judicial
C) Executive
D) Legislative, judicial, and executive
E) Legislative and judicial, but not executive

F) C) and E)
G) B) and E)

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Question 22

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Administrative agencies are located at the federal level only.

A) True
B) False

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Question 23

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Administrative law consists of procedural, but not substantive, rules.

Which of the following is a federal independent agency?

Which of the following is a type of rule that an agency may enact?

In order to be upheld in court, an agency's fact finding must be supported by which of the following?

Prior to the passage of the Administrative Procedures Act, agencies could decide on their own how to make rules, conduct investigations, and hold hearings and trials.

Which of the following was the first federal administrative agency created?

Reference - Disappointed Applicant. Polly, who had a regular driver's license to operate an automobile, decided that she really wanted to drive a tractor-trailer truck. She thought that it would be nice to earn money while seeing the country. Polly had all applicable training and went to her state's department of motor vehicle office to take the test required in order to obtain a license to drive a tractor-trailer truck. While taking the test, in an effort to relieve stress, Polly was stretching her neck and looking around at the other nervous test takers. The proctor for the exam saw her and accused her of stretching and straining to look at the exam answers of other test takers. Her application to drive a tractor-trailer was denied. The local agency department head was also furious with Polly and proceeded to revoke her regular automobile driver's license as well. Applicable statutes provide as follows: (1) "the DMV may suspend or revoke the privilege of any person to operate a motor vehicle upon any of the grounds which authorize the refusal to issue a license"; (2) "the DMV may refuse to issue a license to any person who has "committed any fraud in any application." Polly hears that you have just finished business law and asks for advice. She says that she had decided that she does not really want to drive a tractor-trailer truck because of her neck problems but that she really would like to have her license to operate a regular automobile reinstated. What should Polly do next assuming her state's administrative scheme is the same as the federal scheme?

Reference - Four Paws Protection. Congress set up a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was passed naming the agency the "Animal Protection Commission," and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is true regarding the claim of Fluffy Shampoo that the agency had no power to compel attendance and the provision of documents?

Reference - DUI Charge. Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, took very seriously its role of enforcing the statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission and that in any event, action by an agency is always upheld. Which of the following would have reached the decision at her hearing before the administrative agency?

Reference - Disappointed Applicant. Polly, who had a regular driver's license to operate an automobile, decided that she really wanted to drive a tractor-trailer truck. She thought that it would be nice to earn money while seeing the country. Polly had all applicable training and went to her state's department of motor vehicle office to take the test required in order to obtain a license to drive a tractor-trailer truck. While taking the test, in an effort to relieve stress, Polly was stretching her neck and looking around at the other nervous test takers. The proctor for the exam saw her and accused her of stretching and straining to look at the exam answers of other test takers. Her application to drive a tractor-trailer was denied. The local agency department head was also furious with Polly and proceeded to revoke her regular automobile driver's license as well. Applicable statutes provide as follows: (1) "the DMV may suspend or revoke the privilege of any person to operate a motor vehicle upon any of the grounds which authorize the refusal to issue a license"; (2) "the DMV may refuse to issue a license to any person who has "committed any fraud in any application." Polly hears that you have just finished business law and asks for advice. She says that she had decided that she does not really want to drive a tractor-trailer truck because of her neck problems but that she really would like to have her license to operate a regular automobile reinstated. Assuming Polly seeks to appeal revocation of her license to drive an automobile through any available avenues, what is the most likely result?

Parties in a dispute before an administrative law judge may reach a settlement via a[n] _________________.

Reference - Four Paws Protection. Congress set up a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was passed naming the agency the "Animal Protection Commission," and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is true regarding the claim of Fluffy Shampoo that criminal penalties may not result from violation of agency rules?

Set forth the steps involved in hybrid rule making.

Reference - New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making. Which of the following would be the appropriate location for publication of the proposed rules?

Reference - DUI Charge. Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, took very seriously its role of enforcing the statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission; and that, in any event, action by an agency is always upheld. Which of the following is true regarding the statement by the agency that assuming an appeal to court is available, agency action is always upheld?

Reference - New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making. Which of the following is the appropriate agency classification for the Accounting Commission?

Which of the following are exemptions from rule making that allow an agency to decide whether public participation will be allowed?

The Small Business Administration is an example of an executive agency.