PowerPoint Slides to accompany
The Legal Environment of Business
and Online Commerce 4E,
by Henry R. Cheeseman
Chapter 19
Administrative Law and
Consumer Protection
Prentice Hall © 2005
1
Federal Administrative Agencies

Administrative
agencies that are
part of the executive
or legislative branch
of government
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2
Legislative Powers of Administrative Agencies

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Substantive rule making
 Adopting rules that advance the purpose of the statutes that
the agency is empowered to enforce
Interpretive rule making
 Adopting rules that interpret statutory language
Statements of policy
 Announcing proposed courses of action the agency plans to
take in the future
Licensing
 Granting licenses to applicants and suspending or
revoking licenses
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3
Executive and Judicial Powers of Administrative Agencies

Executive

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
Judicial
Administrative
subpoena
Administrative
searches

Adjudicating cases
through an
administrative
proceeding

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Procedural due
process
Substantive due
process
4
Judicial Review of Administrative Agency Actions

Conditions for
review
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Standards for review

Case must be ripe
for review
Petitioner must have
exhausted all
administrative
remedies
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
Questions of law
Questions of fact



Arbitrary, capricious
abuse of process test
Substantial evidence
test
Unwarranted by the
facts test (or de novo
standard of review)
5
Public Disclosure of Agency Actions and
Protection of Individual Rights


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
Freedom of Information Act
Government in the Sunshine Act
Equal Access to Justice Act
Privacy Act
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6
Caveat Emptor


“Let the buyer
beware”
The traditional
guideline of sales
transactions
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7
Federal Food, Drug, and Cosmetic Act


Administered by the Food and Drug
Administration
Provides a basis for the regulation of the
testing, manufacture, distribution, and
sale of foods, drugs, cosmetics, and
medicinal products in the U.S.
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8
Acts that Regulate Product Safety
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Consumer Product Safety Act
Fair Packaging and Labeling Act
Poison Prevention Packaging Act
Magnuson-Moss Warranty Act
Flammable Fabrics Act
Child Protection and Toy Safety Act
Refrigerator Safety Act
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9
Unfair and Deceptive Practices


Prohibited by Section 5 of the Federal Trade
Commission Act
Unfair and deceptive practices include:




False and deceptive advertising
Bait and switch
Door-to-door sales
Unsolicited merchandise
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10
Federal Consumer-Debtor Protection Acts
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Truth in Lending Act
Consumer Leasing Act
Fair Credit and Charge Card Disclosure Act
Equal Credit Opportunity Act
Fair Credit Reporting Act
Fair Credit Billing Act
Fair Debt Collection Practices Act
Uniform Consumer Credit Code
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