MGMT 254 EXAM 2 QUESTIONS AND ANSWERS | MGMT 254 STUDY GUIDE &
PRACTICE TEST 2026/2027
The actions and activities of most federal agencies that are not otherwise regulated are controlled by
the:
a. Administrative Procedure Act.
b. Freedom of Information Act.
c. The Sunshine Act.
d. Federal treaties. - ANS ✔✔a. Administrative Procedure Act.
An administrative law judge for the Environmental Protection Agency decides a case against a
manufacturer. Which of the following is correct regarding the hearing of the case by the administrative
law judge?
a. The rules of evidence will be strictly applied by the ALJ in deciding the case.
b. There is no appeal from the decision of the ALJ.
c. The ALJ will decide the case by having a jury trial.
d. The ALJ may be authorized to make an initial determination without holding a hearing. - ANS ✔✔d.
The ALJ may be authorized to make an initial determination without holding a hearing.
Administrative law judges have the authority to do all but which one of the following?
a. Swear witnesses.
b. Make evidentiary rulings.
c. Take testimony.
d. Impanel a jury. - ANS ✔✔d. Impanel a jury.
Once __________, and after public input, administrative rules are applicable to all parties.
a. read before the House and the Senate
b. promulgated
c. approved by the Supreme Court
d. signed by the President of the United States - ANS ✔✔b. promulgated
A(n) __________ are practical devices to cut across procedures already outlined and is a negotiated
disposition of a matter before an administrative agency.
a. formal contract
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict - ANS ✔✔b. informal settlement
The Supreme Court of the U.S. heard F.C.C. v. Fox Television Stations, Inc. In the Court's 2012 ruling what
issue did they consider?
a. Whether expletives on a national television broadcast are offensive.
b. Whether FCC's indecency policy gave broadcasters sufficient notice of what would be considered
indecent.
c. Whether the FCC had jurisdiction over words used on televised broadcasts.
d. Whether the use of the expletives on the show in question was intentional. - ANS ✔✔b. Whether
FCC's indecency policy gave broadcasters sufficient notice of what would be considered indecent.
, KBT Inc. was involved in a hearing with an administrative agency. The hearing ruled against KBT Inc. and
the company has now filed an appeal with a district court. Under what circumstances would the district
court overturn the ruling made by the administrative agency hearing?
a. If the court disagrees with the ruling based on a question of fact
b. If the court would made a different decision based on the same facts
c. If the court disagrees with the legal interpretation of the decision under a question of law
d. The court should never reverse the administrative agency ruling, under any circumstances. - ANS
✔✔c. If the court disagrees with the legal interpretation of the decision under a question of law
After the September 11, 2001 attacks on the World Trade Center, airport security measures and process
were changed with an exemption of what policy?
a. allowing suspension of any airport security measures.
b. 30-day public comment period.
c. promulgation deadline.
d. Freedom of Information Act request. - ANS ✔✔b. 30-day public comment period.
Midland Manufacturing Corp. was required to spend $2million to repair its ventilation system after the
Occupational Safety and Health Administration (OSHA) found that the system was not properly venting
the workplace and was causing employees to have respiratory issues. Midland is now suing OSHA and
holding them liable for the money that they have to spend to meet the regulations. What is the court
likely to consider in the case of liability of an agency?
a. Whether the cost to make repairs is excessive
b. Whether the agency acted in good faith in exercising its powers
c. Whether anyone actually got sick or not
d. Whether Midland can afford to make the repairsb. Whether the agency acted in good faith in
exercising its powers - ANS ✔✔b. Whether the agency acted in good faith in exercising its powers
Administrative agencies are governmental entities—other than courts and legislatures —having
authority:
a. to lay and collect taxes, duties, imposts and excises.
b. to make an official decision upon the respective rights of the parties to a suit.
c. to administer and implement legislation.
d. to pay for the debts and common defense and general welfare. - ANS ✔✔c. to administer and
implement legislation.
The Environmental Protection Agency suspects Jimmy Jameson of dumping unlawful chemicals into a
stream on his company's property. The EPA has obtained evidence, claimed to be proof of unlawful
activity, by way of aerial photography. In carrying out these investigations, which of the following is true?
a. The agency has traditionally been accorded great discretion within constitutional limits.
b. The agencies have the unfettered right to investigate in any way they see fit.
c. The agencies must abide by the exact same rules as law enforcement.
d. An agency cannot require sworn testimony or the production of records. - ANS ✔✔a. The agency has
traditionally been accorded great discretion within constitutional limits.
Under the Freedom of Information Act administrative agencies can deny access to nine categories of
records that:
PRACTICE TEST 2026/2027
The actions and activities of most federal agencies that are not otherwise regulated are controlled by
the:
a. Administrative Procedure Act.
b. Freedom of Information Act.
c. The Sunshine Act.
d. Federal treaties. - ANS ✔✔a. Administrative Procedure Act.
An administrative law judge for the Environmental Protection Agency decides a case against a
manufacturer. Which of the following is correct regarding the hearing of the case by the administrative
law judge?
a. The rules of evidence will be strictly applied by the ALJ in deciding the case.
b. There is no appeal from the decision of the ALJ.
c. The ALJ will decide the case by having a jury trial.
d. The ALJ may be authorized to make an initial determination without holding a hearing. - ANS ✔✔d.
The ALJ may be authorized to make an initial determination without holding a hearing.
Administrative law judges have the authority to do all but which one of the following?
a. Swear witnesses.
b. Make evidentiary rulings.
c. Take testimony.
d. Impanel a jury. - ANS ✔✔d. Impanel a jury.
Once __________, and after public input, administrative rules are applicable to all parties.
a. read before the House and the Senate
b. promulgated
c. approved by the Supreme Court
d. signed by the President of the United States - ANS ✔✔b. promulgated
A(n) __________ are practical devices to cut across procedures already outlined and is a negotiated
disposition of a matter before an administrative agency.
a. formal contract
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict - ANS ✔✔b. informal settlement
The Supreme Court of the U.S. heard F.C.C. v. Fox Television Stations, Inc. In the Court's 2012 ruling what
issue did they consider?
a. Whether expletives on a national television broadcast are offensive.
b. Whether FCC's indecency policy gave broadcasters sufficient notice of what would be considered
indecent.
c. Whether the FCC had jurisdiction over words used on televised broadcasts.
d. Whether the use of the expletives on the show in question was intentional. - ANS ✔✔b. Whether
FCC's indecency policy gave broadcasters sufficient notice of what would be considered indecent.
, KBT Inc. was involved in a hearing with an administrative agency. The hearing ruled against KBT Inc. and
the company has now filed an appeal with a district court. Under what circumstances would the district
court overturn the ruling made by the administrative agency hearing?
a. If the court disagrees with the ruling based on a question of fact
b. If the court would made a different decision based on the same facts
c. If the court disagrees with the legal interpretation of the decision under a question of law
d. The court should never reverse the administrative agency ruling, under any circumstances. - ANS
✔✔c. If the court disagrees with the legal interpretation of the decision under a question of law
After the September 11, 2001 attacks on the World Trade Center, airport security measures and process
were changed with an exemption of what policy?
a. allowing suspension of any airport security measures.
b. 30-day public comment period.
c. promulgation deadline.
d. Freedom of Information Act request. - ANS ✔✔b. 30-day public comment period.
Midland Manufacturing Corp. was required to spend $2million to repair its ventilation system after the
Occupational Safety and Health Administration (OSHA) found that the system was not properly venting
the workplace and was causing employees to have respiratory issues. Midland is now suing OSHA and
holding them liable for the money that they have to spend to meet the regulations. What is the court
likely to consider in the case of liability of an agency?
a. Whether the cost to make repairs is excessive
b. Whether the agency acted in good faith in exercising its powers
c. Whether anyone actually got sick or not
d. Whether Midland can afford to make the repairsb. Whether the agency acted in good faith in
exercising its powers - ANS ✔✔b. Whether the agency acted in good faith in exercising its powers
Administrative agencies are governmental entities—other than courts and legislatures —having
authority:
a. to lay and collect taxes, duties, imposts and excises.
b. to make an official decision upon the respective rights of the parties to a suit.
c. to administer and implement legislation.
d. to pay for the debts and common defense and general welfare. - ANS ✔✔c. to administer and
implement legislation.
The Environmental Protection Agency suspects Jimmy Jameson of dumping unlawful chemicals into a
stream on his company's property. The EPA has obtained evidence, claimed to be proof of unlawful
activity, by way of aerial photography. In carrying out these investigations, which of the following is true?
a. The agency has traditionally been accorded great discretion within constitutional limits.
b. The agencies have the unfettered right to investigate in any way they see fit.
c. The agencies must abide by the exact same rules as law enforcement.
d. An agency cannot require sworn testimony or the production of records. - ANS ✔✔a. The agency has
traditionally been accorded great discretion within constitutional limits.
Under the Freedom of Information Act administrative agencies can deny access to nine categories of
records that:
