1. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. Twomey & Jennings BUSINESS LAW Chapter 6 Administrative Agencies Chapter 6 Administrative Agencies

2. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 2 Nature of the Administrative Agency Purpose and Uniqueness of Administrative Agencies. Open Operation of Administrative Agencies. –Open Records: FOIA. –Open Meetings: Sunshine Act. –Public Agency Guidelines. Purpose and Uniqueness of Administrative Agencies. Open Operation of Administrative Agencies. –Open Records: FOIA. –Open Meetings: Sunshine Act. –Public Agency Guidelines.

3. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 3 Structure of the Federal Trade Commission Five Commissioners, with One Serving as Chair Office of Public Information Administrative Law Judges General Counsel Policy Planning and Evaluation SecretaryExecutive Director Assistant Executive Director for Management Bureaus Competition Consumer Protection Economics

4. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 4 Administrative Procedure Act (APA) Freedom of Information Act (FOIA) Sunshine Act (open meeting law) public announcement of actions open records open meetings procedural rights in hearings and enforcement advance notice of meeting open to public advance disclosure of agenda items requests for documents copying and disclosure of documents Laws Governing Administrative Agencies

5. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 5 The Administrative Chain of Command We, the People Executive BranchLegislative BranchJudicial Branch The Administrative Agency Executive Function Legislative Function Judicial Function Limited Review Appeal We, the People

6. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 6 Agency Powers The administrative agency combines the three functions that are kept separate under our traditional governmental system: –Legislative: adopts regulations that have the force of law. –Executive: carries out and enforces the regulations, makes investigations, and requires the production of documents. –Judicial: acts as a court to determine if there has been a violation of any regulation. The administrative agency combines the three functions that are kept separate under our traditional governmental system: –Legislative: adopts regulations that have the force of law. –Executive: carries out and enforces the regulations, makes investigations, and requires the production of documents. –Judicial: acts as a court to determine if there has been a violation of any regulation.

7. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 7 Adoption of Regulations Enabling act Study Draft of Rules Publication of Proposed Rules Public Comment, then… Rules Modified and Republished OR Rules Adopted OR Rules Modified, then Adopted

8. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 8 Adoption of Regulations Public Comment Period. Motor Vehicles Manufacturers Ass’n. v State Farm Mutual Insurance Co. (1983) Seat Belts and Air Bags and Rules, Oh My!

9. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 9 Judicial Power of the Agency Appeal from Administrative Action and the Finality of Administrative Determination. –Fact or Law issues. Appeal from Administrative Action and the Finality of Administrative Determination. –Fact or Law issues. FDA v Brown & Williamson Tobacco Corp (1999) Is Inhaling Subject to FDA Regulation or Is Smoking Just Bad for Your Health?

10. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW Twomey Jennings 1 st Ed. 10 Judicial Power of the Agency Failure to Follow Judicial Procedures. –An agency’s actions can be set aside if it fails to follow proper procedures. Failure to Follow Judicial Procedures. –An agency’s actions can be set aside if it fails to follow proper procedures. San Diego Air Sports Center Inc. v Federal Aviation Administration (1989) Get Off of My Cloud, er, Parachute.