1. Essentials Of Business Law Chapter 5 Administrative Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Essentials of Business LawChapter 5-2 Administrative Agencies Governmental body  Controls and supervises a particular public activity Energy Transportation Environmental pollution Communication

3. Essentials of Business LawChapter 5-3 Administrative Agencies Established by legislatures  Specify the purpose, powers, and actions the agency can take Like governments within a government  Combine all three functions Legislative Executive Judicial

4. Essentials of Business LawChapter 5-4 Federal Agencies Consumer Product Safety Commission Equal Employment Opportunity Commission Environmental Protection Agency Federal Communications Commission Federal Trade Commission Internal Revenue Service Nuclear Regulatory Commission Occupational Safety and Health Administration Securities and Exchange Commission

5. Essentials of Business LawChapter 5-5 State Agencies Alcoholic Beverage Control Board Department of Insurance Public Service Commission Workers’ Compensation Board

6. Essentials of Business LawChapter 5-6 Local Agencies Board of Education Board of Health Consumer Protection Agency Department of Weights and Measures

7. Essentials of Business LawChapter 5-7 Organization Of Governments Government operates at federal, state, and local levels Three branches at each level  Legislative  Executive  Judicial Each branch has specific duties and powers

8. Essentials of Business LawChapter 5-8 Legislative Branch Of Government Elected representatives  Pass laws representing the will of the people Federal level  Two houses of Congress House of Representatives Senate State level  General assembly Two houses (except in Nebraska) Local Level  City council

9. Essentials of Business LawChapter 5-9 Executive Branch Of Government Enforce enacted legislation Federal level  President State level  Governor Local level  Mayor, county executive, or someone with a similar title

10. Essentials of Business LawChapter 5-10 Judicial Branch Of Government Determines if there have been violations of the law Interprets the law Federal level  District courts, appeals courts, U.S. Supreme Court State level  Trial courts, appeals courts, and a supreme court Local level  Municipal courts, justices of the peace, and magistrates courts

11. Essentials of Business LawChapter 5-11 Functions Of Administrative Agencies Regulating conduct  Price, entry into geographic area or type of business Fulfilling government requirements  Collect taxes  Raise revenues Disbursing benefits  Distribute subsidies and benefits Providing goods and services  Electricity, water, hospital care, and public housing

12. Essentials of Business LawChapter 5-12 Why An Administrative Agency Is Formed Legislatures lack time and expertise to:  Create rules to govern complex social and economic areas  Supervise the details on a day-to-day basis

13. Essentials of Business LawChapter 5-13 Administrative Agencies And Governments Similarities  Organizational format is similar to government  Carry out all three functions Executive, legislative, and judicial Differences  Voters do not elect executives in or out of office

14. Essentials of Business LawChapter 5-14 Criticism Of Administrative Agencies Regulators are too closely aligned with enterprises they were created to regulated  Complex industries need experienced regulators  Regulators are influenced by the industry because of their former association Regulators are not elected by popular vote