LAW 18B Chapter Notes - Chapter Ch. 43 Administrative Agencies: Federal Trade Commission, Capital Structure, Financial Statement

• School: Long Beach City College
• Department: Business, Law
• Course: LAW 18B
• Professor: Professor Bernal

Document Summary

Administrative law is created by administrative agencies. Administrative agency: creates detailed rules & regulations necessary to carry out the statute; with its specialized personnel, has the time, resources, & expertise to make the detailed decisions required for regulation. 43-1a administrative agencies exist at all levels of government. At the federal level, the securities & exchange commission regulates a firm"s capital structure, financing, & financial reporting. There are administrative agencies at the state & local levels; a state agency is created as a parallel to a federal agency. Legislation & regulations have significant benefits, which entail considerable costs for business. Business has a strong incentive to try to influence the regulatory environment through lobbying. Enabling legislation: specifies the name, purposes, functions, & powers of the agency being created. Federal administrative agencies can exercise only those powers that congress has delegated to them in enabling legislation. An agency"s enabling statute defines its legal authority.