Question 1

Administrative agencies lack the time, the resources, and the expertise to make the detailed decisions required for regulation.

Accepted Answer

A) True 
 B)False  False

Question 2

Because the Administrative Procedure Act imposes requirements that all federal agencies must follow, it is an integral part of the administrative process.

Accepted Answer

A) True 
 B)False  True

Question 3

An administrative law judge's decision on a dispute over an administrative action is the final order of the agency-no appeal is possible.

Accepted Answer

A) True 
 B)False  False

Question 4

The rules of administrative agencies can be

Accepted Answer

A)  as binding as laws passed by Congress.
B)  only as persuasive as experts' opinions.
C)  merely as suggestive as media commentary.
D)  no more influential than promotional puffery.

Question 5

According to the United States Supreme Court, courts should not defer to an administrative agency's interpretation of the law.

Accepted Answer

A) True 
 B)False

Question 6

The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except

Accepted Answer

A)  measure the cost that the rule will impose on small businesses.
B)  consider less burdensome alternatives.
C)  alert small businesses about forthcoming regulations.
D)  adjust the rule to the satisfaction of the regulated businesses.

Question 7

The executive branch of the government can exercise control over an administrative agency through

Accepted Answer

A)  the president's veto powers.
B)  legislation that takes away the agency's power.
C)  judicial review of agency actions and decisions.
D)  none of the choices.

Question 8

The Federal Trade Commission (FTC)orders General Sales Company to reveal certain information. The firm complains to a court, arguing that the order is an abuse of the FTC's discretion. Like other agencies, the FTC can use a subpoena to

Accepted Answer

A)  compel a party to testify, but not to obtain documents.
B)  obtain any information except what a party refuses to reveal.
C)  harass an uncooperative business or individual.
D)  reveal regulatory violations.

Question 9

Congress can exercise authority over the power of an administrative agency by revising its funding, changing its responsibilities, or abolishing it altogether.

Accepted Answer

A) True 
 B)False

Question 10

After a final rule is issued, an administrative agency conducts investigations to monitor

Accepted Answer

A)  consumer satisfaction with the rule.
B)  affected businesses' satisfaction with the rule.
C)  compliance with the rule.
D)  the impact of the rule on other administrative agencies.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rulemaking.

Accepted Answer

A) True 
 B)False

Question 13

As the economy has grown more complex, the size of the government has also increased, and so has the number of administrative agencies.

Accepted Answer

A) True 
 B)False

Question 14

Preventing agencies from abusing their powers without hindering the agencies as they carry out their duties is not a governmental concern.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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.

Question 16

Bath & Kitchen Inc. is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, the firm wants a court to review it. First, however, the firm must

Accepted Answer

A)  refuse to comply with the agency decision.
B)  petition other interested parties to oppose the decision.
C)  exhaust all possible administrative remedies.
D)  publish its opposition in the Federal Register .

Question 17

By delegating some authority to make and implement laws to an administrative agency, Congress gives up its ability to monitor a particular area.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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.

Question 19

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

Accepted Answer

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

Question 20

A final rule issued through a notice-and-comment rulemaking procedure has binding legal effect

Accepted Answer

A)  after a court affirms it.
B)  until the issuing agency rescinds it.
C)  once Congress approves it.
D)  unless a court overturns it.

Exam 40: Administrative Agencies

Administrative agencies lack the time, the resources, and the expertise to make the detailed decisions required for regulation.

Because the Administrative Procedure Act imposes requirements that all federal agencies must follow, it is an integral part of the administrative process.

An administrative law judge's decision on a dispute over an administrative action is the final order of the agency-no appeal is possible.

The rules of administrative agencies can be

According to the United States Supreme Court, courts should not defer to an administrative agency's interpretation of the law.

The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except

The executive branch of the government can exercise control over an administrative agency through

The Federal Trade Commission (FTC) orders General Sales Company to reveal certain information. The firm complains to a court, arguing that the order is an abuse of the FTC's discretion. Like other agencies, the FTC can use a subpoena to

Congress can exercise authority over the power of an administrative agency by revising its funding, changing its responsibilities, or abolishing it altogether.

After a final rule is issued, an administrative agency conducts investigations to monitor

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

For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rulemaking.

As the economy has grown more complex, the size of the government has also increased, and so has the number of administrative agencies.

Preventing agencies from abusing their powers without hindering the agencies as they carry out their duties is not a governmental concern.

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

Bath & Kitchen Inc. is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, the firm wants a court to review it. First, however, the firm must

By delegating some authority to make and implement laws to an administrative agency, Congress gives up its ability to monitor a particular area.

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

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

A final rule issued through a notice-and-comment rulemaking procedure has binding legal effect