Management 4540 Chapter 43 - Government Regulation Of Business

Front 1

List the six general areas of government regulation

Back 1

1. Transportation
2. Utilities
3. Communications
4. Banking and finance
5. Consumer products
6. General industry/ professions

Front 2

List the four major purposes of government regulation

Back 2

1. Controlling monopoly power
2. Rationing scarce resources
3. Adjusting bargaining power
4. Social regulation

Front 3

Administrative law defined

Back 3

Law pertaining to creation and procedures of administrative agencies

Law created by administrative agencies

Front 4

Administrative agency defined

Back 4

A unit of the executive branch created by a legislature for the purpose of regulating in a specific area.

Front 5

Enabling legislation defined

Back 5

The statute through which the legislature creates and sets boundaries for an administrative agency.

Front 6

Executive agencies defined

Back 6

Agencies which are directly responsible to the chief executive where the heads of the agency may be removed for political reasons

Front 7

Independent agencies defined

Back 7

Agencies which are designed to be less subject to the chief executive, headed by boards or commissions serving fixed terms, whose members may only be removed for cause

Front 8

Legislative powers - rule making function

Back 8

The power to make rules which are binding on the general public in a way similar to a statute

Front 9

Formal rulemaking vs. notice and comment rulemaking

Back 9

Formal: Requires a hearing on the record

Notice and Comment: No hearing on the record required. The rule is made after notice to interested parties and the public followed by a period for comments to the agency

Front 10

Executive powers - Prosecutorial function

Back 10

The power to investigate, charge and prosecute those who violate agency rules

Front 11

List the six general areas of government regulation

Back 11

1. Transportation
2. Utilities
3. Communications
4. Banking and finance
5. Consumer products
6. General industry/ professions

Front 12

List the four major purposes of government regulation

Back 12

1. Controlling monopoly power
2. Rationing scarce resources
3. Adjusting bargaining power
4. Social regulation

Front 13

Administrative law defined

Back 13

Law pertaining to creation and procedures of administrative agencies

Law created by administrative agencies

Front 14

Administrative agency defined

Back 14

A unit of the executive branch created by a legislature for the purpose of regulating in a specific area.

Front 15

Enabling legislation defined

Back 15

The statute through which the legislature creates and sets boundaries for an administrative agency.

Front 16

Judicial powers - Adjudicative function

Back 16

Deciding controversies: administrative law judges make decisions which may be accepted or overturned by the commission or board which heads the agency

Front 17

Legislative restraints on the administrative process

Back 17

1. Enabling legislation
2. Appropriation
3. Contrary legislation

Front 18

Executive branch restraints on the administrative process

Back 18

1. Appointment/ reappointment
2. Political influence
3. Direct control over executive agencies

Front 19

Judicial restraints on the administrative process

Back 19

1. Formal rule making/ adjudication: hearing on the record required by law

2. Informal rulemaking/ adjudication: No hearing on the record required

3. Standards of review

Front 20

Judicial restraints on the administrative process: Standards of review

Back 20

1. De Novo: Review by an appellate court as if there had been no decision below (no defference given to administrative agency

2. Substantial evidence test: Agency decision will be upheld if court finds substantial and competent evidence on the whole record supporting decision

3. Rational basis test: Agency decision will be upheld if rational - so long as not arbitrary or capricious

Front 21

For questions of law, courts use what style of review?

Back 21

De novo

Front 22

For questions of fact in a formal rulemaking scenario, courts use what style of review?

Back 22

The Substantial evidence test

Front 23

For questions of fact in an informal rulemaking scenario, courts use what style of review?

Back 23

The rational basis test