Administrative agencies¾like the Securities and Exchange Commission, the Federal Trade Commission, and the Food and Drug Administration¾make rules. What are the two basic types of rules called, and how binding are they? What must an administrative rule NOT do?

What will be an ideal response?


The rules that are made according to the notice-and-comment rulemaking procedures are sometimes referred to as "legislative rules," and they are as binding as the laws that Congress makes. Such rules, like laws, must not violate the Constitution. Unlike laws, however, such rules must not exceed the power that Congress conferred on the agency in its enabling legislation.

Agencies can adopt rules through less formal actions. These rules may be referred to as "interpretive rules' and are specifically exempt from the requirements of the Administrative Procedure Act of 1946. Interpretative rules declare an agency's interpretation of its enabling statute's meaning, without imposing direct, legally binding obligations or establishing legal rights. They may have practical significance, however, because they can indicate that formal rulemaking may occur if these less formal positions are ignored.

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