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Business Law Principles for Todays Commercial Environment 5th Edition Twomey Test Bank
1. An administrative agency is a governmental body charged with administering and implementing legislation.
a. True
b. False
ANSWER: True
2. Administrative agencies may make the rules, police the community to see the rules are obeyed, and sit in judgment to
determine violations of their rules.
a. True
b. False
ANSWER: True
3. Because administrative agencies have broad powers, they are subject to strict procedural rules as well as disclosure
requirements.
a. True
b. False
ANSWER: True
4. The modern administrative agency typically possesses legislative, executive, and judicial powers.
a. True
b. False
ANSWER: True
5. The Freedom of Information Act provides access to any information upon request.
a. True
b. False
ANSWER: False
6. The public has access to the activity of administrative agencies in three ways: (1) open records, (2) open meetings, and
(3) public announcement of agency guidelines.
a. True
b. False
ANSWER: True
7. The Administrative Procedure Act is a federal law that establishes the operating rules for administrative agencies.
a. True
b. False
ANSWER: True
8. The Sunshine Act requires most meetings of major administrative agencies to be open to the public.
a. True
b. False
ANSWER: True
9. In an emergency, an administrative agency can act beyond the scope of the statute that created it.
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a. True
b. False
ANSWER: False
10. The Electronic Freedom of Information Act Amendments of 1996 extend the public availability of information to
electronically stored data.
a. True
b. False
ANSWER: True
11. The authority of an agency is limited to the technology in existence at the time the agency was created.
a. True
b. False
ANSWER: False
12. Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of
major administrative agencies to be open to the public.
a. True
b. False
ANSWER: True
13. It is a conflict of interest for administrative agencies to allow members of the industry that is to be regulated, to
participate in rule-making deliberations.
a. True
b. False
ANSWER: False
14. A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at
which members of the public may express their views and make suggestions.
a. True
b. False
ANSWER: True
15. Regulations properly adopted by agencies are important, but they do not have the full force of law, as do statutes.
a. True
b. False
ANSWER: False
16. The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a
semiannual basis.
a. True
b. False
ANSWER: False
17. An administrative agency has the power to investigate, to require persons to appear as witnesses, to require witnesses
to produce relevant papers and records, and to bring proceedings against those who violate the law.
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a. True
b. False
ANSWER: True
18. Agency investigations of possible violations of agency rules are handled through independent enforcement agencies.
a. True
b. False
ANSWER: False
19. The Federal Register Act provides that printing an administrative regulation in the Code of Federal Regulations is
public notice of the contents of the regulation to persons subject to it or affected by it
a. True
b. False
ANSWER: False
20. An administrative agency is barred from examining the records of a business enterprise by the constitutional guarantee
against unreasonable searches and seizures.
a. True
b. False
ANSWER: False
21. Within the area in which the administrative agency is authorized to make decisions, the agency can be regarded as a
specialized court or court of limited jurisdiction.
a. True
b. False
ANSWER: True
23. In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses,
take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for
action.
a. True
b. False
ANSWER: True
25. A consent decree is an informal settlement of an enforcement action brought by an administrative agency.
a. True
b. False
ANSWER: True
26. Before an appeal can be taken to a court concerning a determination of an agency, all administrative remedies must be
exhausted.
a. True
b. False
ANSWER: True
27. A court will not reverse an agency’s decision merely because the court would have made a different decision based on
the same facts.
a. True
b. False
ANSWER: True
28. Decisions made by agencies are more likely to be reversed than to be accepted by the court on appeal.
a. True
b. False
ANSWER: False
29. As Courts now tend to accept an agency’s reasonable interpretation of a statute involving a technical matter, even
though it was not the only interpretation that could have been made.
a. True
b. False
ANSWER: True
30. An administrative agency whose erroneous decision causes a regulated person or enterprise substantial loss is liable
for such loss regardless of whether the agency acted in good faith.
a. True
b. False
ANSWER: False
Multiple Choice
31. To satisfy the requirements of due process, an agency handling a complaint must generally _______, although there is
no right to _________.
a. give specific recommendations to the director of the agency, cross-examine witnesses.
b. give notice and hold a hearing, remain silent.
c. give notice and hold a hearing, trial by jury before an agency.
d. give sufficient notice only, remain silent.
ANSWER: c
33. Administrative hearings often have additional parties involved, called ______, who are _______ with an interest in the
case are permitted to participate.
a. intervenors, political entities.
b. industry organizations, intervenors
c. intervenors, ALJ’s.
d. intervenors, industry organizations.
ANSWER: d
39. Before an agency can begin rulemaking proceedings it must be given jurisdiction:
a. by congressional enactment in the form of a statute.
b. granted by an executive order of the President of the United States.
c. from the United States Supreme Court.
d. From the voters in the district.
ANSWER: a
40. The “public comment” period for proposed administrative agency rules must be at least __________ days.
a. 30
b. 60
c. 90
d. 120
ANSWER: a
44. The United States constitution places the most significant limitations on administrative investigation in the area of:
a. search and seizure of the person.
b. aerial inspection.
c. search and seizure of papers and records.
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46. The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has
subpoenaed corporate records.
a. Sixth Amendment.
b. First Amendment.
c. Fifth Amendment.
d. Fourth Amendment
ANSWER: c
47. Under the _______ Amendment, agency officials have the right to conduct________ with a warrant, but a(n)
________ inspection is permitted when violations are dangerous to public health and safety.
a. Sixth, inspections, warrantless.
b. First, inspections, warrantless.
c. Fourth, inspections, warrantless.
d. First, interviews, warrantless
ANSWER: c
49. A significant difference between an administrative agency hearing and a court hearing is that:
a. a binding decision can only be made by an agency.
b. there is no right of trial by jury before an agency.
c. a court hearing allows no public intervention.
d. a court can enforce its decision.
ANSWER: b
50. A(n) __________ is a negotiated disposition of a matter before an administrative agency, generally without public
sanctions.
a. formal settlement
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict
ANSWER: b
52. Which of the following is true about judicial review of agency action?
a. Judges tend to substitute their own judgment for that of the agency.
b. Courts will reverse agency decisions merely because the court would have made a different decision based on
the same facts.
c. Courts will reverse a decision if they disagree with the legal interpretation.
d. There is a right to a trial by jury before an agency.
ANSWER: c
53. The ______can issue a(n) ______ to stop a practice that it decides is improper. This order is binding unless reversed
on an appeal.
a. ALJ, cease-and-desist order
b. Court, monetary fine
c. FTC, cease-and-desist order.
d. FTC, appeal
ANSWER: c
55. If an agency causes a substantial loss to a business by enforcement of its laws, that business:
a. always can hold the agency liable for damages.
b. never can hold the agency liable for damages.
c. may seek damages if the agency acted in bad faith.
d. may seek damages if the agency complied with its own guidelines.
ANSWER: c
Essay
56. The Federal Trade Commission suspects Billy Williams of unlawful trade activities and has obtained evidence,
claimed to be proof of unlawful activity, by way of aerial photography. The FTC is also currently seeking the submission
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Business Law Principles for Todays Commercial Environment 5th Edition Twomey Test Bank
57. Arthur sustained an injury to his back. Arthur claimed the injury was suffered at work and filed a claim for workers'
compensation benefits. The employer opposed this claim, saying the injury, if real, was the result of a congenital
condition. In accordance with the statute, a hearing was held before the Workers' Compensation Board, which ruled
against Arthur. Arthur became disgusted with the hearing officer and the proceedings because Arthur felt that the hearing
officer did not like him. Arthur has consulted an attorney seeking to sue for workers' compensation benefits. An appeal is
available within the agency, but Arthur wants to go directly to court because he feels that the agency appeal would be
useless. Discuss the merits of this strategy.
ANSWER: Arthur cannot bring a lawsuit to overturn the findings of the Worker’s Compensation Board, since Arthur has
failed to exhaust his available administrative remedies. The lawsuit would be unsuccessful and would not be
heard by the courts.
58. Wilma was an employee of the Electric Storage Battery Company. She was fired. She claimed that she was fired
because she was a member of a labor union. The employer asserted that she was fired because she was a poor worker.
Wilma filed an unfair labor practice complaint with the National Labor Relations Board. Its examiner held a hearing at
which evidence was presented showing that Wilma was a poor worker. Other evidence presented showed that the
employer was opposed to labor unions. The Board decided to believe Wilma's witnesses and concluded that she had been
fired because she belonged to the union. Can the employer appeal this decision?
ANSWER: Yes. The employer has the right to appeal the decision. This right is conferred by statute. On the facts as
stated, however, the employer will lose the appeal because the decision turns upon the decision of which
witnesses to believe. If the witnesses on behalf of the employee are believed, there was an unfair labor
practice. When the administrative agency selects one set of witnesses to believe, a court hearing an appeal
will not reverse the conclusion of the agency. The court will only examine the case to see if there was a
substantial basis for the agency’s findings of fact. There was evidence on both sides which, if believed,
would be sufficient to justify a conclusion in favor of each side. The court will not go further to see if it
would have agreed with what the agency believed. That is, the court will not substitute its own opinion when
a case turns upon the credibility of witnesses who testified before the agency.
Language: Finnish
Kirj.
ARVI JÄRVENTAUS
Kotona oli.
— Valekristitty!
Se oli papin poika, joka sen sanoi. Hän oli hyvin totinen ja potkaisi
jäkälälimppua kuin sanansa vahvikkeeksi.
— Peeratunturin laidasta…
— Jaa, jaha… Mutta eihän siitä ole pitkää aikaa kun ostin sinulta
satakunta.
— Tietysti.
Nytkin sinne tulla kyökkäsi kylän vaimoja, heti kun Aslak oli
avannut oven.
— Vai lahjoa aiot minut taas! No, koeta, koeta, mutta Rauna-
muorin kieltä et lahjo. Se puhuu totuutta eikä peittele syntiä. — Sinun
pitää tehdä parannus, Aslak, ennenkuin synnin mitta täyttyy.
— Vai niin. Kuulenpa, että olet käynyt papin luona. — Onko pappi
kristitty? Mitä luulet, Aslak?