McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives
Explain what administrative law is
Discuss the role of administrative law in business
Understand how diversity is important for administrative law
Explain how administrative agencies are created
Recite the powers of administrative agencies
Explain the Administrative Procedures Act and what it is
designed to do
Explain how administrative law interfaces with courts
Explain the constitutional limitations of administrative law
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Administrative Law and Agencies
Administrative Law is the area that addresses
federal and state government agencies and their
role in carrying out their delegated authority
Administrative Agencies are created by the
government to conduct business on its behalf
IRS – empowered by Congress to lay and collect taxes
Agencies are created by enabling statutes, or
Presidential Executive orders
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Need for Administrative Law
Need for more flexible enforcement
proceedings
Need for subject matter expertise
Relieve court backlog
Need to solve national issues quickly
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Functions of Administrative Agencies
Rule making
Adjudication
Administrative functions
Advising
Reporting
Issuing guidelines
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Delegation of Administrative Powers
Congress delegates parts of its power to
administrative agencies depending on what they
need to accomplish.
Quasi-Legislative Authority
Quasi-Judicial Authority
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Delegation of Administrative Powers
Administrative Regulations Guidelines
Regulations promulgated by administrative agencies
must be followed like other laws.
Must be published in the Federal Register to provided
adequate notice and receive feedback
Can be challenged in courts based on
constitutionality
Must not deprive citizens of rights without the due
process of the law (5th and 14th Amend.)
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Delegation of Administrative Powers
Administrative Regulations Guidelines
– Minimally, regulations must give notice and
opportunity for hearings
American Airlines, Inc. v. Department of
Transportation, 202 F.3d 788 (5th Cir. 2000)
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Formal Rule Making
Complies with Administrative
Procedures Act
Notice in Federal Register
Public hearing and live testimony
Publication of findings
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Informal Rule Making
Agency drafts regulations
Notice in Federal Register
Public comment period – usually 30 days
Agency considers comments – decides to
modify or not
Publication of final draft
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Enforcement of Administrative Agency
Orders
A final order issued in an adjudication, will have
full force and effect only if the order is enforced
by a court of law
The effect is to take the issue out of the purview of the
agency, with its limited authority, and give it the full
force and effect of law as issued by a more
comprehensive court of law
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Administrative Regulations and Business
Businesses may belong to trade organizations in order to
receive updates on agency regulations and ensure
compliance.
Under the Administrative Procedures Act (APA), regulations
usually undergo a period of seeking input from those likely to
be affected by the regulation (i.e. businesses in that field).
It is important for the business owner to have a means of
having his or her business interests and input heard and
represented.
Administrative agencies must comply with APA and act
transparently
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