Business Law for Accountants Questions & Answers 2024/2025 Grade A+

Business Law for Accountants Questions & Answers 2024/2025 Grade A+ Financial Stability Oversight Council - ANSWER-Created by Dodd-Frank to identify and respond to emerging risks in the financial system. Consumer Financial Protection Bureau (CFPB) - ANSWER-Created by Dodd-Frank. Supervises the activities of banks and nonbanks offering consumer financial products, mortgage lenders, and credit-card companies. Enabling legislation - ANSWER-A statute enacted by Congress that authorizes the creation of an administrative agency and specifies the name, composition, purpose, and powers of the agency being created. Federal Trade Commission Act of 1914 - ANSWER-Prohibits unfair methods of competition and deceptive trade practices. It also describes the procedures that the FTC must follow to charge persons or organizations with violations of the act, and it provides for judicial review of agency orders. Composed of five members. Each is appointed by the president, with the advice and consent of the Senate, for a term of seven years. The president designates one of the commissioners to be the chair. 7 Powers of the FTC - ANSWER-1. Create "rules and regulations for the purpose of carrying out the Act." 2. Conduct investigations of business practices. 3. Obtain reports from interstate corporations concerning their business practices. 4. Investigate possible violations of federal antitrust statutes. (The FTC shares this task with the Antitrust Division of the U.S. Department of Justice—see Chapter 26.) 5. Publish findings of its investigations. 6. Recommend new legislation. 7. Hold trial-like hearings to resolve certain trade disputes that involve FTC regulations or federal antitrust laws. 2 Types of administrative agency - ANSWER-Executive and independent regulatory. Legislative rules - ANSWER-An administrative agency rule that affects substantive legal rights and carries the same weight as a congressionally enacted statute. Interpretive rules - ANSWER-An administrative agency rule that simply declares a policy or explains the agency's position and does not establish any legal rights or obligations. Delegation doctrine - ANSWER-A doctrine based on Article I, Section 8, of the U.S. Constitution, which has been construed to allow Congress to delegate some of its power to make and implement laws to administrative agencies. The delegation is considered to be proper as long as Congress sets standards outlining the scope of the agency's authority. 3 Basic functions of agencies - ANSWER-Rulemaking, enforcement, and adjudication. Administrative Procedure Act (APA) of 1946 - ANSWER-Provides guidelines for agencies to follow when creating their policies, in the absence of congressional requirements. Notice and Comment rulemaking - ANSWER-An administrative rulemaking procedure that involves the publication of a notice of a proposed rulemaking in the Federal Register, a comment period for interested parties to express their views on the proposed rule, and the publication of the agency's final rule in the Federal Register. Two types of subpoena - ANSWER-1. Subpoena ad testificandum ("to testify"). 2. Subpoena duces tecum ("bring it with you") Administrative law judge - ANSWER-One who presides over an administrative agency hearing and who has the power to administer oaths, take testimony, rule on questions of evidence, and make determinations of fact. Freedom of Information Act (FOIA) - ANSWER-1966. requires the federal government to disclose certain records to any person or entity on written request, even if no reason is given for the request. Government in the Sunshine Act - (open meeting law) - ANSWER-1976. "Every portion of every meeting of an agency" be open to "public observation." The act also requires the establishment of procedures to ensure that the public is provided with adequate advance notice of scheduled meetings and agendas. Regulatory Flexibility Act - ANSWER-1980. Whenever a new regulation will have a "significant impact upon a substantial number of small entities," the agency must conduct a regulatory flexibility analysis. The analysis must measure the cost that the rule would impose on small businesses and consider less burdensome alternatives. The act also contains provisions to alert small businesses—through advertising in trade journals, for example—about forthcoming regulations. The act reduces some recordkeeping burdens for small businesses, especially with regard to hazardous waste management. Continues......