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The National Security Agency (NSA) wants Oceanic Airlines Inc. to produce certain records for review. To obtain the records, the NSA will issue​


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

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

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Federal agencies must prepare guides that explain in "plain English" how small businesses can comply with federal regulations.

A) True
B) False

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The most critical activity of an administrative agency is to spend more funds than are allocated to it.

A) True
B) False

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Congress can review new federal regulations before they take effect.

A) True
B) False

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An agency can make rules that are as legally binding as laws passed by Congress.

A) True
B) False

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The Occupational Safety and Health Administration (OSHA) issues new rules with regard to safety in industrial workplaces. After the final rules are issued, OSHA can conduct investigations to​


A) ​determine consumer satisfaction.
B) ​determine whether affected businesses are satisfied.
C) ​monitor compliance with the rules.
D) ​determine what type of agency needs to be created next.

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

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A party can challenge an administrative regulation as so irrational as to be arbitrary and capricious.

A) True
B) False

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Maya seeks information about well-known businesspersons under the Freedom of Information Act. To obtain the information, Maya must​


A) ​agree not to reveal any trade secrets.
B) ​reasonably describe the information.
C) ​get a court order.
D) ​have the subjects' permission.

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

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Federal regulations take precedence over conflicting state regulations.

A) True
B) False

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The Nuclear Regulatory Commission (NRC) files a complaint against Energy Plant Corporation. The firm may want to settle the dispute, before formal adjudicatory proceedings begin, to avoid​


A) ​appearing uncooperative.
B) ​eliminating the need for additional proceedings.
C) ​rectifying the problem to the NRC's satisfaction.
D) ​saving the expense of formal proceedings and later appeals.

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

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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 Web site.

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

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The Federal Trade Commission (FTC) is an independent regulatory agency. As such, the FTC is subject to​


A) ​no higher authority.
B) ​less executive authority than executive agencies.
C) ​more executive authority than executive agencies.
D) ​the authority of nongovernmental oversight committees.

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

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Any party to a case may appeal the order of an administrative law judge to the board or commission that governs the agency.

A) True
B) False

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Persons who favor the creation of a National Biotech Agency to regulate the production of genetically altered agricultural products should concentrate their lobbying efforts on​


A) ​Congress.
B) ​federal administrative agencies that oversee agricultural products.
C) ​the United States Supreme Court.
D) ​the president of the United States.

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

Correct Answer

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Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that​


A) ​attorneys are not allowed to attend administrative hearings.
B) ​clients are not allowed to communicate with their attorneys during administrative hearings.
C) ​hearsay can be introduced as evidence in an administrative hearing.
D) ​the burden of proof is on the charged party to prove innocence.

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

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The Federal Emergency Management Agency (FEMA) discovers that Goodnuff Trailers, 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) A) and D)

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A subpoena ad testificandum is an order to an individual or organization to hand over certain records, papers, or books.

A) True
B) False

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Most administrative actions are resolved through negotiated settlements at their initial stages, without formal adjudication.

A) True
B) False

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Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision​


A) ​changed the agency's prior policy without justification.
B) ​followed a consideration of all relevant factors.
C) ​was accompanied by a rational explanation.
D) ​was plainly warranted by the evidence.

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

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An agency must conduct a regulatory flexibility analysis whenever a new regulation will have "a significant impact on a substantial number" of small businesses.

A) True
B) False

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