Weekly Discussion
basidurisala
ch06_bleg_11e.pptxChapter 6 Administrative Law
Its Legal, Ethical, and Global Environment
Marianne M. Jennings
Business
11th Ed.
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Nonlegislative/Nonjudicial Body
Exist at every level of government
They make, interpret, and enforce regulations
Legislatures pass enabling acts
Sets up basic law, purpose, penalties
Sets up administrative agencies to handle the enforcement
What Are Administrative Agencies?
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Examples of Federal Administrative Agencies
Department of Agriculture
Department of the Interior
Federal Maritime Commission
Veterans Administration
What Are Administrative Agencies?
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The SEC
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Specialization
Needed to deal with complexities of legislation
Agencies can hire the necessary expertise
Examples: Environmental, occupational safety, nuclear, securities − regulation in these areas requires special expertise
Role of Administrative Agencies
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Role of Administrative Agencies
Protect Small Interests and Small Business
Examples: Corrective advertising, consumer complaints
Provide for More Rapid Enforcement and Relief
Do not have to use court system for enforcement
Licensing and permits can be done quickly
Achieve Social Goals
Examples: Environmental Protection Agency; Federal Home Loan Bank Board; Resolution Trust Corporation
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Laws Governing Administrative Agencies
Administrative Procedures Act (APA)
Established uniform procedures for agencies to follow in promulgating rules
Other acts have separate names but are amendments to the APA
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Freedom of Information Act (FOIA)
APA amendment passed in 1966
Purpose was to allow public access to agency records
Types of information required to be published
Location of offices
Names of responsible individuals
Rules and regulations
Reports
Policy statements
Laws Governing Administrative Agencies
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Freedom of Information Act (FOIA)
Types of information not published
Hearing orders
Non-published interpretations
Personnel policies and procedures
Laws Governing Administrative Agencies
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Freedom of Information Act (FOIA)
Unpublished information can be obtained through an FOIA request
Must be written
Must describe the information and/or documents sought
Agency can charge for time and copy costs
Laws Governing Administrative Agencies
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Freedom of Information Act (FOIA)
Wrongful refusal to supply information allows requester to bring suit and obtain court order for release as well as recovering cost
Laws Governing Administrative Agencies
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Laws Governing Administrative Agencies
Freedom of Information Act (FOIA)
Exemptions from disclosure
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Laws Governing Administrative Agencies
Federal Privacy Act
Passed in 1974 as an APA amendment
Intended to cut down on the pervasive and casual exchange of information about individuals between and among agencies
Agencies cannot obtain individuals’ records from other agencies without the consent of that person
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Government in Sunshine Act
Open meeting law passed in 1976
Federal Register Act
Authorizes a formal record of agency actions called the Federal Register
Regulatory Flexibility Act
Requires publication of proposed rulemaking in trade publications
Laws Governing Administrative Agencies
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Functions of Administrative Agencies
Promulgating Regulations − Business Input
Formal rulemaking
Congress passes Enabling Act
Agency researches a problem
Proposed regulations
Public comment period
Action on rules is taken
Challenges to adopted agency rules
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Steps in Rulemaking
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Notice of Proposed Rulemaking
Notice of Proposed Rulemaking Expanding Access to Mobile Wireless Services Onboard Aircraft
A Proposed Rule by the Federal Communications
ACTION: Proposed Rules
AGENCY: Federal Communications Commission
SUMMARY: In this Notice of Proposed Rulemaking (NPRM), the Commission proposes to revise outdated rules and adopt consistent new rules governing mobile communications services aboard airborne aircraft. These rule changes would give airlines, subject to applicable Federal Aviation Administration (FAA) and Department of Transportation (DoT) rules, the choice of whether to enable mobile communications services using an Airborne Access System and, if so, which specific services to enable. The proposed rules would also replace an existing patchwork of regulatory prohibitions on airborne use of mobile services in some, but not all, of the heavily used mobile wireless bands with a consistent regulatory framework that explicitly forbids airborne use of mobile services in those bands unless they are operating on an aircraft equipped with an Airborne Access System.
Synopsis
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Notice of Proposed Rulemaking (cont.)
I. Introduction and Background
II. Discussion
A. Changes to Current Rules Restricting Airborne Mobile Broadband Use
B. Airborne Access Systems
1. Potential Harmful Interference From Uncontrolled Airborne Mobile Devices
2. Benefits of Airborne Access Systems
3. Technical Requirements
C. Airborne Commercial Mobile Use
D. Other Issues
1. Service Below 3,048 Meters (10,000 Feet)
2. Voice Service Onboard Aircraft
Dates
Submit comments on or before February 14, 2014. Submit reply comments on or before March 17, 2014.
Paperwork Reduction Act (PRA) comments should be submitted March 17, 2014.
Addresses
You may submit comments, identified by WT Docket No. 13-301 or FCC 13-157, by any of the following methods:
Federal Communications Commission’s Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting comments.
Mail: FCC Headquarters, 445 12th St. SW., Washington, DC 20554.
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Activity During Comment Period
Legislative process and lobbying and donations are different from executive branch participation
Businesses can provide information/comments, but providing favors for regulators creates a fine line
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Interacting with the Executive Branch
Case 6.1 McDonnell v. U.S. (2016)
What kinds of favors and gifts were given by Jonnie Williams?
What action did Governor McDonnell take in exchange?
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Agency Options Following Comments
Promulgate the new rule
Modify and promulgate
Modify and request additional comments
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Authority of Administrative Agencies: Court Challenges
Case 6.2 Hornbeck Offshore Services, L.L.C. et al., v. Salazar (2010)
What was done with the regulation to result in this judicial decision and why?
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Sunset Laws
Agency created for a limited time
Must justify its existence within that time
Zero-Base Budgeting
Ongoing budget for agency is not assumed
Must justify its budget each year
Proactive Business Strategies in Regulation
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Enforcement Actions
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Enforcement Actions
Licensing and Inspection
Enforcement and Inspection
Up-front approval
Some checks imposed
Enforcement by inspection
Health Code violation, Occupational Safety and Health Administration (OSHA) safety inspections
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Prosecution of Business
Enforcement by prosecution
Complaint is filed
Injunction can be obtained for this period
Consent decree
Like a plea bargain in a criminal case
Like a nolo contendere plea in a criminal case
Enforcement Actions
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Enforcement Actions
Prosecution of Business
Can go to hearing without an agreements
Administrative law judge (ALJ) hears the case
ALJ is like a judge at trial
Intervenors can appear in the case
Rules of evidence are relaxed
Must allow for due process
Exhaust administrative authority before appeal
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Enforcement Actions
Prosecution of Business
Penalties
Fines
Injunctions
Repayment to buyers
Corrective advertising
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Enforcement Actions
Prosecution and Business
Go to court of appeals
Appeals of decisions go to agency heads exhausting administrative authority (unless it would be futile) before court or appeals will consider
State court appeals also go to court of appeals; however, some states require new trail in state trial court
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Roles of Administrative Agencies
Activity Steps Parties Results
Passing Rules Rule Proposed Agency New Rules
Comments Consumers Modified Rule
Modification, Business Withdrawn Rules
Withdrawal Congress
Promulgation Agency
Enforcement Licensing Agency
Business
Inspections Agency Search and
Courts (if Inspection
Warranty is
Required)
Business
Complaints Agency Fines
Penalties
Injunctions
Consent decrees
Hearings
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Administrative Agencies in the International Market
The United States is Heavily Regulated
Some businesses have argued that regulations hinders them in the international marketplace
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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Complexity of Federal Regulations
Documents and Populations Grade Level
Love Story 7.64
Reading Level of U.S. Population over Age 65 9.71
Playboy 11.46
Reading Level of General U.S. Population 11.68
Sports Illustrated 12.82
Your Medicare Handbook 14.94
ERISA Summary Plan Description 15.29
The Wall Street Journal 16.34
Social Security Handbook 17.51
Reading Level of Lawyers 19.00
Albermarle (U.S. Supreme Court Ruling) 20.30
Occupational Safety and Health Act 30.79
Employment Retirement Income Safety Act 32.10
Section 18 of the Social Security Act 41.04
©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
National defense or foreign
policy matter
Internal personnel rules of
the agency
Statutorily protected
information
Trade secrets
Inter- and intra-agency
memos
Personnel and medical
files
Records of
investigations
Banking audits
Geological
information on w ell
sites
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· National defense or foreign policy matter · Internal personnel rules of the agency · Statutorily protected information · Trade secrets · Inter- and intra-agency memos |
· Personnel and medical files · Records of investigations · Banking audits · Geological information on well sites |
