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.
You might also like to view...
Data mining normally involves building profiles of consumer groups and preparing models that predict future purchase behaviors
Indicate whether the statement is true or false
A limitation of the internal rate of return method is that it:
A. Does not consider the time value of money. B. Lacks ability to compare dissimilar projects. C. Measures results in years. D. Ignores varying risks over the life of a project. E. Measures net income rather than cash flows.
Which of the following is NOT a basis for involuntary dissolution?
a. A proceeding initiated by the secretary of state, if it is established that the corporation failed to pay its franchise tax. b. The directors are deadlocked and the shareholders cannot break the deadlock. c. The shareholders dissent to a merger and are asserting their appraisal rights. d. None of these.
Which of the following is a reason why sales promotion has increased over the past 30 years?
A. Resellers are more interested in long-term performance than short-term profitability. B. Heightened concerns about value have made customers more responsive to promotional offers. C. It is unanimously agreed that sales promotion is more effective than advertising. D. Sales promotion is less expensive and often makes up the entire integrated marketing strategy. E. Consumers and resellers have begun to place more importance on quality over value.