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Final rules do not have binding legal effect until the courts confirm them.

A) True
B) False

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Under the Administrative Procedure Act,a party seeking judicial review of an agency decision must first exhaust all administrative remedies.

A) True
B) False

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The Securities and Exchange Commission (SEC) wants to review certain documents of Trade Funds Inc.Whether it is permissible for the SEC to request or review the documents depends on whether the documents are


A) incriminating.
B) relevant.
C) technical.
D) valuable.

E) A) and B)
F) B) and D)

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Retail Stores Inc.pays taxes collected by the appropriate state agencies.Like other state administrative agencies,these agencies were created by


A) a state legislature,through an enabling act.
B) a state court,through the adjudicatory process.
C) a federal administrative agency,through administrative regulations.
D) the state governor,through an executive order.

E) C) and D)
F) A) and C)

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The procedures used by administrative agencies in fulfilling their basic functions is known as


A) the procedural process.
B) the legislative process.
C) the administrative process.
D) the executive process.

E) A) and C)
F) B) and C)

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On review of an agency's interpretation of the law,a court is likely to defer to the agency's view,unless the court would have interpreted the law differently.

A) True
B) False

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A failure of the Federal Bureau of Investigation to comply with a request under the Freedom of Information Act (FOIA) may be challenged in


A) a federal district court.
B) a hearing before the U.S.Freedom of Information Agency.
C) a meeting with Congress's FOIA subcommittee.
D) a special conference with the president of the United States.

E) B) and C)
F) A) and C)

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A

Notice-and-comment rulemaking involves a period during which


A) judges,legislators,and the president are asked about a proposed rule.
B) potential violators of a proposed rule are notified and publicized.
C) the administrators "notice" a problem and "comment" on it.
D) the public is asked to comment on a proposed rule.

E) All of the above
F) B) and C)

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New administrative agencies are rarely created in response to a crisis.

A) True
B) False

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When a state administrative regulation conflicts with a federal administrative regulation


A) the federal regulation takes precedence.
B) the state regulation takes precedence.
C) a cost-benefit analysis is applied to determine which takes precedence.
D) the regulations are equally valid within their jurisdictions.

E) None of the above
F) A) and B)

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The Environmental Protection Agency (EPA) wants Waste Disposal Company to produce certain records for review.The EPA can gain access to the records through


A) an order for specific performance.
B) a rule for parol evidence.
C) a formal complaint.
D) a subpoena.

E) A) and C)
F) B) and C)

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


A) adjudication.
B) declaration.
C) rulemaking.
D) investigation.

E) A) and B)
F) A) and C)

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Administrative regulations have benefits,but the benefits can entail considerable costs for business.

A) True
B) False

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The Federal Emergency Management Agency (FEMA) discovers that Rescue Inc.is violating a FEMA regulation.If this situation is resolved like most such disputes,the outcome will be


A) a negotiated settlement.
B) a trial and a fine.
C) a trial and an appeal to a higher authority.
D) a trial and the dissolution of the business.

E) A) and B)
F) None of the above

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Administrative agencies at various levels of government can work together and share the responsibility of creating and enforcing regulations.

A) True
B) False

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True

To notify the public of a proposed rule,the Federal Emergency Management Agency,like other federal agencies,publishes the proposal


A) through a broadcast on a public television station.
B) in a trade journal available to members of the industry.
C) in the Federal Register.
D) on its website.

E) B) and C)
F) None of the above

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To be assured that a court will defer to an administrative agency's interpretation of the law,the agency must


A) meet the formal legal standards for notice-and-comment rulemaking.
B) exhaust all administrative remedies.
C) make its records available online and in other electronic formats.
D) open every portion of every meeting to public observation.

E) A) and B)
F) B) and C)

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The Food and Drug Administration (FDA) is an executive agency.As an executive agency,the FDA is subject to the authority of


A) no government official or entity.
B) the president.
C) state legislatures.
D) the U.S.Attorney General

E) A) and B)
F) A) and C)

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A meeting of a federal agency must be open to public observation if the meeting involves matters relating to future litigation or rulemaking.

A) True
B) False

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False

The Financial Stability Oversight Council was created in response to a financial crisis to


A) identify and respond to emerging risks in the financial system.
B) protect consumers from abusive practices by financial institutions.
C) issue rules to cover almost every aspect of a business's operation.
D) reduce the number and authority of business financial regulations.

E) None of the above
F) All of the above

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