Ch 6 Administrative Law. 2 Agency Law Administrative agencies –State and Federal Business must comply with rules made by Administrative Agencies IE TN.

Ch 6 Administrative Law

Ch 6 Administrative Law

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Agency LawAgency Law

• Administrative agencies– State and Federal

• Business must comply with rules made by Administrative Agencies

• IE TN Dept of Labor

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Article I of the U.S. Constitution authorizes delegating such powers to administrative agencies.

LegislationLegislation

• Administrative agencies make rules that are as legally binding as laws that Congress passed.

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PurposePurpose

• Agencies 3 functions:

• 1. Rulemaking

• 2. Enforcement

• 3. Adjudication (trials)

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ExampleExample

Law: Federal Trade Commission Act of 1914.

Agency: Federal Trade Commission

Purpose: prohibits unfair competition and deceptive trade practices.

Powers Act grants the FTC:• Create rules and regulations.• Conduct investigations.• Obtain reports and investigate antitrust violations.

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ExampleExample

Law: Tennessee Workers Compensation Act

Agency: Tennessee Dept of Labor

Now all work comp cases are tried by ALJ from the TN Dept of Labor – no longer go to court.

Powers

Create rules and regulations.

Conduct investigations.

Adjudicate cases

Other ExamplesOther Examples

• Examples of Administrative Agencies making decisions:

• 1. Losing license –

• 2. Property taxes – zoning changes

• 3. professional licenses

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All federal agencies must follow specific procedural requirements in rulemaking, adjudication, and other functions.

The Administrative Procedure ActThe Administrative Procedure Act

Court Review Agency DecisionCourt Review Agency Decision

• Court rarely set aside Agency ruling.

• Like the standard for setting aside an arbitrator’s decision.

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Administrative Procedures ActAdministrative Procedures Act

• STANDARD = Courts may set aside agency actions only if arbitrary and capricious and abuse of discretion

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• FCC fined Fox TV for several things including Cher and Nicole Richie saying the “f” word during acceptance speech

• Fox argued the words were a “one time isolated and fleeting” incident.

• FCC said still violation – otherwise TV would air cuss words one at a time

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FCC v. Fox Television Studios, Inc.FCC v. Fox Television Studios, Inc.

• Was FCC decision to fine arbitrary or capricious or an abuse of discretion

• SCt. –Sent back to see if arbitrary or capricious.

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Rulemaking ProceduresRulemaking Procedures

• 1. When agency makes a new rule, the agency must publish a notice of the propose rule in the Federal Register.

• Notice must have:– A. where and when proceeding will be held– B. the public can comment– C. rules approved and published

• Example – Hemp Inc. made food with hemp in it. 2001 Without notice or formal rule making, DEA made rule that said any product with any hemp is a Schedule 1 drug.

• Ct said no – DEA did not go through hoops of rule making – notice, proceeding

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• “Exhaustion” Doctrine:

• Some laws – especially employment laws, required you to go through the correct agency BEFORE can file a lawsuit.

• EX

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Public AccountabilityPublic Accountability

–Freedom of Information Act.

–Sunshine Act.

• FAYETTEVILLE, Ark. -- Former Arkansas coach Bobby Petrino and Jessica Dorrell exchanged more than 4,300 text messages and nearly 300 phone calls over the past seven months -- on game days, before dawn and even as the police report that hastened his downfall was being released to the public, according to a review of his business cellphone records by The Associated Press.

•  • How did ESPN get phone records?

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Freedom of Information ActFreedom of Information Act

• FOIA Request

Also: make their records available electronically.

• As an employer – what kind of documents might you want under FOIA?

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Sunshine LawSunshine Law

• “every portion of every meeting of an agency” be open to “public observation.”

• Adequate notice of meetings must be given to the public.

• Closed meetings are authorized rarely

Mosque Case – Sunshine LawMosque Case – Sunshine Law

• County officials opted to advertise the meeting in the Murfreesboro Post, a free weekly newspaper that plaintiffs contend does not meet qualifications for a “newspaper of general circulation” and hence no NOTICE

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