Administrative Law Outline-MP

Administrative Law Outline-MP - Administrative Law...

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Administrative Law Professor Stabile Monica Parsley 1. Introduction a. Definition of an administrative agency i. Vast array of governmental entities other than the 3 branches of the federal government. ii. Some are independent 1. Not under any supervision of the executive branch. iii. Administer various programs established by the legislative branch b. Justification for Regulation i. Solution to defects in the market 1. Need to control monopoly power a. Sometimes monopolies are anti-competitive (regulated by anti-trust laws) and in other  cases monopolies make sense for efficiency (regulated by price fixing). 2. Compensate for inadequate information a. When consumers lack info they cannot evaluate competitors. b. Consumers do not have bargaining power to get info, info may be expensive to  produce, info may be too hard to understand, consumers don’t even know what info  they need, inadequate communication, consumer apathy. c. Ex. Fair Credit Reporting Act, FDA warnings 3. Collective Action Problem a. “What is good for one is bad for everyone else” b. Ex. Prisoners Dilemma i. Rational prisoner will confess to save himself when the best choice for  everyone would for him to be silent. c. Regulation forces cooperation d. Ex. National Defense and Public Goods 4. Correct for “externalities”/”spill over costs” a. Transaction costs where the price of the product does NOT reflect certain costs which  is carried by another class and therefore is not addressed by the market. b. Ex. Air Pollution ii. Less conventional economic arguments for regulation 1. Control “windfall” profits a. Profits result from luck or accident and are not deserved. b. Ex. OPEC regulates windfall profits from oil 2. Eliminate “excessive” competition a. Competition is destructive and businesses go under b. Ex. Airlines 3. Need to alleviate scarcity a. Items are short in supply and the regulation allocated the items b. Ex. Natural Gas and TV licences 4. Agency Problems a. If an agency is making decisions or paying for decisions, then there is a distoration of  market forces. 1
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b. Ex. Insurance coverage where the insurance is making decisions as to what care the  patient may receive. iii. Redistribution 1. Regulation is justified for redistributing things from one party to another 2. Ex. Welfare, Minimum Wage Laws 3. There is a “public interest” argument iv. Collective Values 1. Regulation that is desirable to address non-market problems 2. Ex. Enviornmental Regulation and Public Access TV v. Disadvantage and Caste 1. Overcome historic and systemic disadvantages 2. Ex. Anti-discrimination laws vi. Paternalism 1. Government has obligation to protect people from their bad judgement
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This note was uploaded on 02/15/2008 for the course LAW 1000 taught by Professor Minda during the Fall '06 term at St. Johns Duplicate.

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Administrative Law Outline-MP - Administrative Law...

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