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The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is


A) compile the rule with others in the Code of Federal Regulations .
B) draft the rule .
C) publish a notice of the proposed rulemaking.
D) solicit public comment.

E) None of the above
F) A) and B)

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Agency actions are automatically subject to judicial review.

A) True
B) False

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Notice-and-comment rulemaking involves regulators noticing a situation that lacks a rule, commenting on it among themselves, and then issuing a rule.

A) True
B) False

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


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) C) and D)

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The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can


A) issue a formal complaint .
B) do nothing.
C) take the matter to the U.S. Supreme Court.
D) immediately impose sanctions.

E) None of the above
F) A) and C)

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An agency is not required to conduct a regulatory flexibility analysis on a new regulation.

A) True
B) False

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T he Food and Drug Administration (FDA) is investigating reports that Caplets Corporation is putting potentially harmful additives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets


A) must be specific and adequately describe the material being sought.
B) must not be specific or an incriminating item might be overlooked.
C) must be general so as to force an uncooperative party's compliance.
D) may, but need not, be specific because this is only an investigation.

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

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When a federal agency decides to create a new rule, the agency publishes a notice of the proposed proceedings.

A) True
B) False

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Organic Frozen Foods Corporation is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of


A) administrative law .
B) legislative law.
C) executive law.
D) judicial law.

E) C) and D)
F) A) and D)

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


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) B) and C)
F) All of the above

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The executive branch of the government exercises no control over agencies.

A) True
B) False

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Today, there are administrative rules covering almost every aspect of a business's operations.

A) True
B) False

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Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care will be required to appear at a hearing presided over by respite


A) a federal appellate court judge.
B) a federal district court judge .
C) an administrative law judge.
D) a U.S. Marshal.

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

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If a business firm refuses to comply with an agency request to inspect facilities or business records, the agency may resort to the use of a subpoena.

A) True
B) False

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Administrative agencies' rules are


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 C)

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Delta Water Company is subject to a decision by the Environmental Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision


A) changed the agency's prior policy without justification .
B) followed a consideration of all legally appropriate factors.
C) was accompanied by a rational explanation.
D) was plainly warranted by the evidence.

E) A) and C)
F) None of the above

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Through enabling orders, state governors create state administrative agencies.

A) True
B) False

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Omega Company operates a computer chip production plant. Paula is the president of Omega. Ron, a representative of the Occupational Safety and Health Administration, inspects the plant and, citing a certain regulation, orders Omega to take specified steps immediately to improve sanitation at the plant.  Paula believes that Ron is either exceeding his authority or that the regulation Ron claims to be enforcing is excessive.  Can Omega ask a court for an order to stop enforcement of the regulation?  If not, what can Omega do?

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Omega cannot ask a court for an injuncti...

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The Securities and Exchange Commission (SEC) wants to review certain documents of Trades Online Inc. Whether it is permissible for the SEC to request or review the documents depends on whether the documents are


A) incriminating.
B) relevant.
C) technical.
D) valuable.

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

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After final rules are issued, administrative agencies no longer conduct investigations of the entities that they regulate.

A) True
B) False

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