BUSINESS LAW 1 EXAM QUESTIONS AND ANSWERS 100% CORRECT
2025
Administrative Law - CORRECT ANSWER-Branch of public law that is created by administrative
agencies in the form of rules, regulations, orders, and decisions to to carry out the regulatory
powers and duties of those agencies
Administrative process - CORRECT ANSWER-Refers to the entire set of activities in which
administrative agencies engage while carrying out their rulemaking, enforcement, and
adjudicative functions
Administrative agency - CORRECT ANSWER-Government entity (other than a court or
legislature) having authority to affect the rights of private parties
Legislative rules - CORRECT ANSWER--Often called "Regulations"
-Must provide standard to guide agency
-Must be in accordance with the APA
-Have a binding force and effect of law
Interpretative rules - CORRECT ANSWER--Indicate its construction of its governing statute
-Exempt from APA
-NonBinding but does hold weight in court (persuasive)
Procedural Rules - CORRECT ANSWER--Set forth rules of conduct and methods of operation
-Establish its organization, method of operation, and rules of conduct for practiving before it
(business hours, hearing procedures, etc.)
-Non Binding
-Exempt from APA
, Adjudication - CORRECT ANSWER--It is an administrative trial governed by certain standards set
by the APA
-After concluding an investigation, the agency may use formal or informal methods to resolve
the matter
-Most matters are informally adjudcated by advising, negotiating, and settling
Order - CORRECT ANSWER-Final deposition made by an agency
Operations of Administrative Agencies - CORRECT ANSWER-1) Make rules
2) Enforce the Law
3) Adjudicate controversies
When was the Administrative Procedure Act (APA) passed? What is it? - CORRECT ANSWER-
1946 - a rule is "the whole or a part of an agency statement of general or particular applicability
and future effect designated to impliment, interpret, or process law or policy"
Rule - CORRECT ANSWER-Agency statement of general or particular applicability designed to
implement, interpret, or process law or policy
T/F: Interpretative rules establish an administrative agency's organization and method of
operation - CORRECT ANSWER-False - Procedural Rules establish this
T/F: Administrative law is a branch of private law - CORRECT ANSWER-False - Public Law
T/F: Administrative agencies create more legal rules and adjudicate more controversies than all
the legislatures and courts combined - CORRECT ANSWER-True
T/F: To be valid legislative rules must not exceed the actual authority granted to the agency by
the enabling statute - CORRECT ANSWER-True
2025
Administrative Law - CORRECT ANSWER-Branch of public law that is created by administrative
agencies in the form of rules, regulations, orders, and decisions to to carry out the regulatory
powers and duties of those agencies
Administrative process - CORRECT ANSWER-Refers to the entire set of activities in which
administrative agencies engage while carrying out their rulemaking, enforcement, and
adjudicative functions
Administrative agency - CORRECT ANSWER-Government entity (other than a court or
legislature) having authority to affect the rights of private parties
Legislative rules - CORRECT ANSWER--Often called "Regulations"
-Must provide standard to guide agency
-Must be in accordance with the APA
-Have a binding force and effect of law
Interpretative rules - CORRECT ANSWER--Indicate its construction of its governing statute
-Exempt from APA
-NonBinding but does hold weight in court (persuasive)
Procedural Rules - CORRECT ANSWER--Set forth rules of conduct and methods of operation
-Establish its organization, method of operation, and rules of conduct for practiving before it
(business hours, hearing procedures, etc.)
-Non Binding
-Exempt from APA
, Adjudication - CORRECT ANSWER--It is an administrative trial governed by certain standards set
by the APA
-After concluding an investigation, the agency may use formal or informal methods to resolve
the matter
-Most matters are informally adjudcated by advising, negotiating, and settling
Order - CORRECT ANSWER-Final deposition made by an agency
Operations of Administrative Agencies - CORRECT ANSWER-1) Make rules
2) Enforce the Law
3) Adjudicate controversies
When was the Administrative Procedure Act (APA) passed? What is it? - CORRECT ANSWER-
1946 - a rule is "the whole or a part of an agency statement of general or particular applicability
and future effect designated to impliment, interpret, or process law or policy"
Rule - CORRECT ANSWER-Agency statement of general or particular applicability designed to
implement, interpret, or process law or policy
T/F: Interpretative rules establish an administrative agency's organization and method of
operation - CORRECT ANSWER-False - Procedural Rules establish this
T/F: Administrative law is a branch of private law - CORRECT ANSWER-False - Public Law
T/F: Administrative agencies create more legal rules and adjudicate more controversies than all
the legislatures and courts combined - CORRECT ANSWER-True
T/F: To be valid legislative rules must not exceed the actual authority granted to the agency by
the enabling statute - CORRECT ANSWER-True
