Question 1

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 .E) A) and B)
F) C) and D)

Question 2

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

Question 3

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

Question 4

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.E) All of the above
F) None of the above

Question 5

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 6

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 7

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 8

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

Question 9

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

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.E) C) and D)
F) B) and C)

Question 11

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 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

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 16

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

Question 17

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 18

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 19

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.E) All of the above
F) A) and D)

Question 20

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

Exam 40: Administrative Agencies

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

The rules of administrative agencies can be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

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