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Chapter 43 Administrative Law    See Separate Lecture Outline System I NTRODUCTION Previous chapters were concerned primarily with constraints on business arising from court decisions and state statutes.  This unit deals primarily with constraints arising from federal statutes and administrative regulations. Most administrative agencies are part of the executive branch and are subject to the authority of the president; some exist as independent regulatory agencies, and their officials cannot be removed without cause. Most agencies have a broad range of authority that seems legislative, judicial, and executive in nature and that engenders much controversy.  These topics are discussed in this chapter.   A DDITIONAL  R ESOURCES A UDIO  & V IDEO  S UPPLEMENTS The following  audio and video supplements  relate to topics discussed in this chapter— 79
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80           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION PowerPoint Slides To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint slides compiled for Chapter 43.
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CHAPTER 43:   ADMINISTRATIVE LAW           81 C HAPTER  O UTLINE I. The Practical Significance of Administrative Law Congress delegates some authority to make and implement laws, particularly in highly technical areas, to administrative agencies. These regulations can have benefits but also entail costs for businesses. Businesses—and others—thus have a strong incentive to influence administrative agencies’ decisions. A DDITIONAL  B ACKGROUND The Delegation Doctrine The courts have seriously considered the extent to which Congress can delegate its powers to third parties only in this century.  In 1904, the United States Supreme Court first declared that the test of whether a  delegation  is proper is if Congress establishes ascertainable “standards” that outline the limits of the agency’s discretion. Supreme Court decisions in the 1920s held that Congress could delegate only gap-filling powers to administrative agencies.  In other words, Congress would pass a law expressed in general terms, and the agency would fill in the “gaps” by creating regulations to implement the law.     This approach was prompted by the perception that Congress’s ability to oversee directly the implementation of particular laws is limited and that specialized agencies are better able to regulate areas involving technical ques- tions.  The Court extended great deference to such delegations by Congress.
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