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Chapter 6 Administrative

Agencies

Twomey JenningsAnderson’s Business Law and the Legal Environment, Comprehensive 20e

Anderson’s Business Law and the Legal Environment, Standard 20eBusiness Law: Principles for Today’s Commercial Environment 2e

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Nature of the Administrative Agency

• Purpose and Uniqueness of Administrative Agencies.

• Open Operation of Administrative Agencies.– Open Records: FOIA.

– Open Meetings: Sunshine Act.

– Public Agency Guidelines.

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The Administrative Chain of Command

We, the People

Executive Branch Legislative Branch Judicial Branch

The Administrative AgencyExecutive FunctionLegislative Function

Judicial Function

Limited Review

Appeal

We, the People

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Legislative Power of the Agency

• Agency’s Regulations as Law.

• Agency Adoption of Regulations.– Congressional Enabling Act (example:

EEOC).

– Proposed Regulations.• Federal Register Act in Federal Register.

– Proposed Comment Period.

– Options After Comments.

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Enabling act

Study

Draft of Rules

Publication of Proposed Rules

Public Comment, then…

Rules Modified and RepublishedOR

Rules AdoptedOR

Rules Modified, then Adopted

Executive Power of the Agency

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Executive Power of the Agency

• Enforcement or Execution of the Law.• Constitutional Limitations on Administrative

Investigation.– Inspection of Premises: possible when danger is

great and business is highly regulated (liquor).– Aerial Inspection.– Production of Papers.– Compliance Verification.

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Judicial Power of the Agency

• Agency as a Specialized Court.– Beginning Enforcement: either private

individual or agency may file complaint.

• Administrative Hearing.– Due Process (Notice and Hearing).

– Informal Settlements / Consent Decrees.

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Judicial Power of the Agency

• Civil Penalties.

• Cease and Desist Orders.

• Exhaustion of Administrative Remedy.

• Appeals.– Fact and/or Law issues.

– Beyond the Jurisdiction of the Agency.

– Arbitrary and Capricious.