Miller_BLTC12E_PPT_ch37.pptx

BUSINESS LAW TodaySTANDARD EDITION TEXT & SUMMARIZED CASES, 12e

Roger LeRoy Miller

Miller, Business Law Today, Comprehensive Edition: Text & Cases, 12th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Administrative Law

Chapter 37

Chapter Outline

37-1 Practical Significance

37-2 Agency Creation and Powers

37-3 The Administrative Process

37-4 Judicial Deference to Agency Decisions

37-5 Public Accountability

Learning Objectives (slide 1 of 2)

What is the difference between how statutory law and administrative law are created?

How do the three branches of government limit the power of administrative agencies?

What sequence of events must normally occur before an agency rule becomes law?

Learning Objectives (slide 2 of 2)

What is the importance of the Chevron case?

In what way has federal legislation made agencies more accountable to the public?

37-1 Practical Significance

37-1a Administrative Agencies Exist at All Levels of Government

At the national level the two basic types of administrative agencies are executive agencies and independent regulatory agencies.

Executive agencies exist within the cabinet departments of the executive branch.

37-1b Agencies Provide a Comprehensive Regulatory Scheme

37-2 Agency Creation and Powers

37-2a Enabling Legislation—An Example

Federal Trade Commission Act

Create “rules and regulations for the purpose of carrying out the Act.”

Conduct investigations of business practices.

Obtain reports from interstate corporations concerning their business practices.

Investigate possible violations of federal antitrust statutes. (The FTC shares this task with the Antitrust Division of the U.S. Department of Justice.)

Publish findings of its investigations.

Recommend new legislation.

Hold trial-like hearings to resolve certain kinds of trade disputes that involve FTC regulations or federal antitrust laws.

37-2b Agency Powers and the Constitution

Legislative Rule: An administrative agency rule that carries the same weight as a congressionally enacted statute.

The Delegation Doctrine

A doctrine, based on the U.S. Constitution, which has been construed to allow Congress to delegate some of its power to make and implement laws to administrative agencies.

Executive Controls

Legislative Controls

Judicial Controls

37-2c The Administrative Procedure Act (slide 1 of 2)

The APA sets forth rules and regulations that govern the procedures of administrative agencies follow in performing their duties.

The Arbitrary and Capricious Test

Courts typically consider whether the agency has done any of the following:

Failed to provide a rational explanation for its decision.

Changed its prior policy without justification.

Considered legally inappropriate factors.

Failed to consider a relevant factor.

Rendered a decision plainly contrary to the evidence.

37-2c The Administrative Procedure Act (slide 2 of 2)

Fair Notice

Spotlight Case Example 37.3 Federal Communications Commission v. Fox Television Stations, Inc. (2012)

37-3 The Administrative Process

Administrative process: The procedure used by administrative agencies in the administration of law.

37-3a Rulemaking

Rulemaking: The actions of administrative agencies when formally adopting new regulations or amending old ones.

Notice of the proposed rulemaking.

A comment period.

The final rule.

37-3a Rulemaking

Notice of the Proposed Rulemaking

When a federal agency decides to create a new rule, the agency publishes a notice of the proposed rulemaking proceedings in the Federal Register.

Comment Period

The Final Rule

Informal Agency Actions

Interpretive Rule: An administrative agency rule that explains how the agency interprets and intends to apply the statutes it enforces.

37-3b Enforcement

Inspections and Tests

Subpoenas

A subpoena ad testificandum is an ordinary subpoena. It is a writ, or order, compelling a witness to appear at an agency hearing.

The subpoena duces tecum compels an individual or organization to hand over books, papers, records, or documents to the agency.

Search Warrants

37-3c Adjudication

Adjudication: A proceeding in which an administrative law judge hears and decides issues that arise when an administrative agency charges a person or a firm with an agency violation.

Negotiated Settlements

Formal Complaints

Hearings

The Role of the Administrative Law Judge

Hearing Procedures

Agency Orders

Exhibit 37–3 The Process of Formal Administrative Agency Adjudication

Case 37.2

Craker v. Drug Enforcement Administration (2013)

Why should a court wait to review an agency’s order until the order has gone through the entire procedural process and can be considered final?

37-4 Judicial Deference to Agency Decisions

37-4a The Holding of the Chevron Case

Did Congress directly address the issue in dispute in the statute? If so, the statutory language prevails.

If the statute is silent or ambiguous, is the agency’s interpretation “reasonable”? If it is, a court should uphold the agency’s interpretation, even if the court would have interpreted the law differently.

37-4b When Courts Will Give Chevron Deference to Agency Interpretation

37-5 Public Accountability (slide 1 of 2)

37-5a Freedom of Information Act

The act requires the federal government to disclose certain records to any person on request, even if no reason is given for the request.

37-5b Government in the Sunshine Act

The act requires that “every portion of every meeting of an agency” be open to “public observation.” The act also requires procedures to ensure that the public is provided with adequate advance notice of the agency’s scheduled meeting and agenda.

37-5 Public Accountability (slide 2 of 2)

37-5c Regulatory Flexibility Act

Whenever a new regulation will have a “significant impact upon a substantial number of small entities,” the agency must conduct a regulatory flexibility analysis.

37-5d Small Business Regulatory Enforcement Fairness Act

The SBREFA includes various provisions intended to ease the regulatory burden on small businesses.

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Miller_BLTC12E_PPT_ch37.pptx

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