Business Law Essays

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Chapter06_Twomey_23e_rev1-191.pptx

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David P. Twomey – Boston College

Marianne M. Jennings – Arizona State University

Stephanie Greene – Boston College

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 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 for classroom use.

Twomey - Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.

© 2017 Cengage Learning. All Rights Reserved.

© 2017 Cengage Learning. All Rights Reserved.

Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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Chapter 6

Administrative Agencies

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

LEARNING OUTCOMES

Describe the nature and purpose of administrative agencies

Discuss the legislative or rulemaking power of administrative agencies

Explain the executive or enforcement function of administrative agencies

Discuss the judicial power of administrative agencies including the rule on exhaustion of administrative remedies

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-1 Nature of the Administrative Agency

6-1a Purpose of Administrative Agencies

An administrative agency is a government body that administers and implements legislation.

Created to carry out general policies specified by Congress

Examples include SEC, CPSC, FDA

Governed by administrative law

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-1 Nature of the Administrative Agency

6-1b Uniqueness of Administrative Agencies

Combine legislative, executive, and judicial powers

6-1c Open Operation of Administrative Agencies

Public has ready access to administrative agency activities

Open records

Open meetings

Public announcement of agency guidelines

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-2 Legislative Power of the Agency

6-2a Agency’s Regulations as Law

Agencies cannot act beyond their scope of authority

Authority is not limited to the technology in existence at the time the agency was created

Example: Massachusetts v. EPA—Court held that the EPA must curb greenhouse gases due to the Clean Air Act

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6-2 Legislative Power of the Agency

6-2b Agency Adoption of Regulations

Congressional Enabling Act

Agency Research of the Problem

Proposed Regulations

Public Comment Period

At least 30 days

Options after Public Comment

Agency can pass, promulgate, or withdraw the rule.

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-3 Executive Power of the Agency

6-3a Enforcement or Execution of the Law

Agency has the power to investigate to determine law and rule violations and to determine if additional regulations are needed

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6-3 Executive Power of the Agency

6-3b Constitutional Limitations on Administrative Investigation

Inspection of Premises: Allowed without a warrant unless dangerous to health or safety

Production of Papers: The 4th and 5th Amendments cannot be invoked

Inspections and Reports: The agency may require submission of periodic reports

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6-4 Judicial Power of the Agency

6-4a The Agency as a Specialized Court

Beginning Enforcement – Preliminary Steps

A private individual or agency may file a written complaint, which is served/answered

The Administrative Hearing

No right to jury; administrative law judge (ALJ) hears the case

Not subject to the rules of evidence

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-4 Judicial Power of the Agency

6-4a The Agency as a Specialized Court, Cont.

Streamlined Procedure: Consent Decrees: Practical devices used to resolve disputes

The Hearing Process: Interveners, interested third parties, can also participate

The Administrative Agency Decision: Files an opinion with the findings of facts and reasons for the decision

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Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition

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6-4 Judicial Power of the Agency

6-4b Punishment and Enforcement Powers of Agencies

Penalty

Cease-and-Desist Order

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6-4 Judicial Power of the Agency

6-4c Exhaustion of Administrative Remedies

No judicial review until after the agency’s final decision unless

there is no opportunity for relief

irreparable injury is possible

an appeal to the agency would be useless

substantial constitutional question exists

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6-4 Judicial Power of the Agency

6-4d Appeal from an Administrative Agency Action

Procedural Issues

Substantive Law or Fact Issues

Ultra Vires or Beyond the Jurisdiction of the Agency

Arbitrary and Capricious (ex. Hornbeck Offshore Services v. Salazar)

Constitutional Rights

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