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Chapter 43Administrative Law and Regulatory Agencies
Introduction to Administrative Law and Regulatory Agencies
Businesses are subject to substantial federal, state, and local government regulation
Government regulation Designed to protect employees and the public from
unsafe and abusive practices by businesses
43-2Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Administrative Law
Law that governments enact to regulate industries, businesses, and professionals
Administrative agencies: Agencies that governments create to enforce regulatory statutes
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Exhibit 43.1 - Administrative Agency
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Government Regulation of Business
Type of Regulation Description
General government regulation
Government regulation that applies to many industries
Specific government regulation
Government regulation that applies to a specific industry
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Federal Administrative Agencies
Federal administrative agencies that are created by the U.S. Congress
Cabinet-level federal departments: Federal agencies that advise the president and are responsible for enforcing specific administrative statutes enacted by Congress
Independent federal administrative agencies: Federal agencies that have broad regulatory powers over key areas of the national economy
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State and Local Administrative Agencies
State administrative agencies: Created by legislative branches of states Administers state regulatory laws
Local administrative agencies: Created by cities, municipalities, and counties Administers local regulatory law
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Administrative Procedure
Administrative law—combination of substantive and procedural law Substantive administrative law—Law that an
administrative agency enforces Procedural administrative law—Establishes the
procedures that must be followed by an administrative agency while enforcing substantive laws
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Administrative Law Judge (ALJ)
An employee of an administrative agency Presides over an administrative proceeding Decides questions of law and fact concerning cases
Order: A decision issued by an administrative law judge
Administrative Procedure Act (APA): A federal statute that establishes procedures to be followed by federal administrative agencies while conducting their affairs
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Powers of Administrative Agencies
Delegation doctrine: A doctrine that says When an administrative agency is created, it is
delegated certain powers The agency can use only the legislative, judicial,
and executive powers that are delegated to it
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Powers of Administrative Agencies
Legislative Power Description
Substantive rule making To adopt rules that advance the purpose of the statutes that the agency is empowered to enforce. These rules have the force of law. Public notice and participation are required.
Interpretive rule making To adopt rules that interpret statutes. These rules do not establish new laws. Neither public notice nor participation
is required.
Statements of policy To announce a proposed course of action the agency plans to take in the future. These statements do not have the force
of law. Public participation and notice are not required
Licensing To grant licenses to applicants (e.g., television station licenses, bank charters) and to suspend or revoke licenses.
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Powers of Administrative Agencies
Power Description of Power
Judicial The power to adjudicate cases through an administrative proceeding. This includes the power to issue a complaint, hold a hearing by an administrative law judge (ALJ), and issue an order deciding the case and assessing remedies.
Executive The power to prosecute violations of statutes and administrative rules and orders. This includes the power to investigate suspected violations, issue administrative
subpoenas, and conduct administrative searches.
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Administrative Searches
Subject to the Fourth Amendment to the U.S. Constitution
Unreasonable search and seizure: Any search and seizure by the government that violates the Fourth Amendment to the U.S. Constitution
Evidence from an unreasonable search and seizure (“tainted evidence”) is inadmissible in court
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Case 43.1: U.S. Supreme Court Search of Business Premises
Case New York v. Burger 482 U.S. 691, 107 S.Ct. 2636, 96 L.Ed.2d 601,
Web 1987 U.S. Lexis 2725 Supreme Court of the United States
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Case 43.1: U.S. Supreme Court Search of Business Premises
Issue Does the warrantless search of an automobile
junkyard pursuant to a state statute that authorizes such search constitute an unreasonable search and seizure, in violation of the Fourth Amendment?
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Judicial Review of Administrative Agency Actions
Review is expressly provided for in many federal statutes In the absence of enabling statute – APA authorizes
judicial review of federal administrative agency actions
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Exhibit 43.3 - Appeal of a Federal Administrative Agency Decision
Administrative Law Judge
(ALJ)
Federal Administrative
Agency
U.S. District Court
U.S. Court of Appeals
U.S. Supreme
Court
Whether the appeal from the Federal Whether the appeal from the Federal Administrative Agency is to the U.S. Administrative Agency is to the U.S. District Court or the U.S. Court of District Court or the U.S. Court of Appeals is determined by the federal Appeals is determined by the federal law in question.law in question.
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Freedom of Information Act
Federal act that gives the public access to documents in the possession of federal administrative agencies
Documents are exempt from disclosure if they Are classified in the interests of national security Are statutorily prohibited from disclosure Interfere with law enforcement proceedings Are medical, personnel, and similar files Contain trade secrets, confidential or privileged
information
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Government in the Sunshine Act
A federal act that opens most federal administrative agency meetings to the public
Exceptions are meetings: Where a person is accused of a crime Concerning an agency’s issuance of a subpoena Where attendance of the public would significantly
frustrate the implementation of a proposed agency action
Concerning day-to-day operations
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Equal Access to Justice Act
A federal act that protects persons from harassment by federal administrative agencies
Privacy Act: A federal act which states Federal administrative agencies can maintain only
information about an individual that is relevant and necessary to accomplish a legitimate agency purpose
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