Bài giảng Business Law - Chapter 47: Administrative Law

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin11Administrative LawThe Federal Trade Commission Act and Consumer Protection LawsAntitrust: The Sherman ActThe Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and ImmunitiesEmployment LawEnvironmental RegulationRegulation of BusinessPARTAdministrative LawPAETRHC47The execution of the laws is more important than the making of them.Thomas JeffersonLearning ObjectivesExplain the role of enabling legislation and constitutional limitations in defining the legal authority of an administrative agencyList administrative agency powersDiscuss the major legal bases for a judicial challenge to administrative agency actionsAdministrative agencies serve as a primary means for implementing and enforcing statutes enacted by CongressAgencies are created by Congress through enabling legislationFederal and state agencies must operate within the constitutional guarantees of due process, equal protection, and freedom of speechOverviewTwo types of federal administrative agencies: Executive agencies: within Executive Office of the President or executive departments of president’s cabinet Administrative heads appointed and removable at President’s willIndependent agencies: still executive in function, but headed by board or commission whose members are appointed by the President “with the advice and consent of the Senate”Agency TypesFederal agency’s exercise of rulemaking and adjudicatory powers constrained by the Administrative Procedure Act (APA)The agency’s powers to act and procedures to take action are specified in the enabling legislationAgency ProceduresBasic discretionary powers agencies may possess are rulemaking power, investigative power, and adjudicatory powerAgency’s formal powers also offer significant informal power in the form of agency advice, suggestions, or guidelines, which lack the legal force of formal agency regulations or rulings, but are very persuasive in shaping the behavior of regulated industriesAgency PowersAgencies need accurate information about business activities to detect and prosecute violations of law and to identify areas in which rules should be added or modifiedAgency investigations must be authorized by law and conducted for a legitimate purposeTwo most important investigative tools are subpoenas and searches and seizuresInvestigative PowerAn administrative agency may seek to gather information only available by entry upon private property (e.g., home, office, factory)Fourth Amendment prohibits unreasonable search and seizure and requires a warrant based on probable causeInvestigative Power: Search & SeizureAn agency’s rulemaking power derives from enabling legislation and must comply with the Administrative Procedure Act (APA) Procedural rules state how the agency will operateInterpretive rules advise regulated entities about how an agency interprets the statutes it enforcesLegislative rules have full force and effect of lawRulemaking PowerAgencies have the power to conduct judicial proceedings to determine whether a statute or regulation has been violatedIn general, process begins with a complaint filed by the agency and the party charged in the complaint (respondent) files an answerIn a hearing before the agency, testimony and evidence are allowed, but no jury is presentAdjudicatory PowerPresident may shape agency action through (a) power to appoint and remove agency administrators, (b) power to veto legislation related to administrative agencies, and (c) influence over the executive budgetCongress may shape agency action through (a) “advice and consent” role , (b) amending agency’s enabling legislation , and (c) legislating changes in agency proceduresControl of AgenciesCourts arguably exercise greatest control over agency behavior since the APA allows judicial review of most agency actionAn individual or organization seeking judicial review must demonstrate that:Agency action being challenged is reviewable, challenging party has standing to sue, all required administrative remedies have been exhausted, and dispute is ripe for judicial reviewJudicial Review of AgenciesLegal bases for challenging agency action:Ultra vires doctrine (agency exceeded authority) Agency substantially deviated from procedural requirements of APA or enabling legislationAgency action was unconstitutional Agency action unsubstantiated by facts at the time of actionChallenging Agency ActionThought QuestionsDo you think that federal agencies have enough power to do all they are expected to do or too much power? What ethical issues might arise for a business that receives a subpoena or warrant from an administrative agency?