BUS 340 Lecture Notes - Lecture 23: Vagueness, Wear-Tv
Michael Le
Arc
Bus 340
Business Law
Administrative Agencies (Administrative Law)
■ “The 4th branch of Govt” because there are so many people employed by the
govt – they’re the bureaucrats—3 letter agencies (FBI, IRS, DEA) “The
Bureaucracy”
■ Everyone is regulated by administrative agencies all the time
● We can’t escape them!
○ “Product of Necessity” – we need them so we put up with them – they are apart of the
government process
■ Each branch delegates a commission to make rules and guidelines for the
specific category (i.e. the FAA – licenses of officers)
■ Inability to prosecute and lack of experience
■ Judicial branch has a problem is that they can’t handle the volume of cases
○ Functions of Admin Agencies
■ 1-Advising – about what the law is and how we comply with it
● SEC will advise you about Security Exchanges because it’s easier to
advise than to chase you down
■ 2-Supervising – ex: our tax returns, marketing and advertising (FDC),
communications/radio (FCC), etc; whether we like it or not
■ 3-Rule Making (Legislative) – Delegate rule making to agencies with
expertise
■ 4-Investigate (Executive) – the police branch
■ 5-Prosecute (Executive) – if violating the rules
■ 6-Adjudicating (Judicial) – disputes adjudicated within admin agency
● Means disputes are legally decided w/I agency
○ Violating the Separation of Powers – Checks/Balances
● Govt branches are equal in Power
● Supported by Checks and Balances
■ Admin Agencies have all 3 branches of power
■ Ethical Issue? – Could lead to abuse…and it sometimes does
■ “Tax Payer Bill of Rights” not being abused by the Bill of Rights
● Judicial Standards (for protection from Admin Agencies)
○ Valid Standards – Admin Agency must have been established validly
● Ex: SEC in 1934 Securities Act
■ “Void for Vagueness” – Agency is void because it was vaguely established
○ Interpret – sufficiently described—not vague
○ Within boundaries – Agency must work within their standards and can operate
Document Summary
The 4th branch of govt because there are so many people employed by the govt they"re the bureaucrats 3 letter agencies (fbi, irs, dea) the. Everyone is regulated by administrative agencies all the time. Product of necessity we need them so we put up with them they are apart of the government process. Each branch delegates a commission to make rules and guidelines for the specific category (i. e. the faa licenses of officers) Inability to prosecute and lack of experience. Judicial branch has a problem is that they can"t handle the volume of cases. 1-advising about what the law is and how we comply with it. Sec will advise you about security exchanges because it"s easier to advise than to chase you down. 2-supervising ex: our tax returns, marketing and advertising (fdc), communications/radio (fcc), etc; whether we like it or not. 3-rule making (legislative) delegate rule making to agencies with expertise. 5-prosecute (executive) if violating the rules.
