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Ch 6 Administrative Law

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2 Practical Significance of Agency Law Administrative agencies State and Federal Business must comply with rules made by Administrative Agencies IE TN Dept of Labor

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

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Administrative agencies make rules that are as legally binding as laws that Congress passed. 4

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Purpose Agencies 3 functions: 1. Rulemaking 2. Enforcement 3. Adjudication (trials) 5

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6 Example 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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7 Example 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

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Other Examples Examples of Administrative Agencies making decisions: 1. Losing license 2. Property taxes zoning changes 3. professional licenses 8

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9 All federal agencies must follow specific procedural requirements in rulemaking, adjudication, and other functions. The Administrative Procedure Act

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Court Review Agency Decision Court rarely set aside Agency ruling. Sort of like the setting aside an arbitrators decision. 10

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Administrative Procedures Act STANDARD = Courts may set aside agency actions only if arbitrary and capricious and abuse of discretion 11

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Arbitrary and Capricious Test: CASE 6.1 FCC v. Fox Television Studios, Inc. (2009). Are the FCCs indecency rules too vague? The Administrative Procedure Act 12

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FCC v. Fox Television Studios, Inc. FCC fined Fox TV for several things including Cher and Nicole Richie saying the f word during acceptance speech. 13

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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 14

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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. 15

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16 Rulemaking 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

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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 17

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18 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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19 Public Accountability Freedom of Information Act. Sunshine Act.

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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.Arkansas How did ESPN get phone records? 20

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21 Freedom of Information Act FOIA Request Also: make their records available electronically.

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As an employer what kind of documents might you want under FOIA? 22

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23 Sunshine 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

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Mosque 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 24