Legal Environment of Business Quiz 7 – LAW 2221, Chapter 17 – 2026 – Study
and Practice Guide
Independent agencies are designated by Congress as independent of the executive branch of
the government and do not exist by virtue of the authority of the president. - correct answer
✔✔ False
One way that administrative agencies monitor the compliance of businesses with regulatory
requirements is through inspection of facilities and business sites under their jurisdiction. -
correct answer ✔✔ True
The Securities and Exchange Commission is responsible for distributing retirement and medical
benefits to eligible citizens. - correct answer ✔✔ False
In the context of the scope of administrative agency power set out in the Administrative
Procedures Act (APA), informal rulemaking is used by an agency only when Congress has
specifically indicated in the enabling statute that the agency rules must be made "on the record
after a hearing." - correct answer ✔✔ False
The losing party in an administrative law judge (ALJ) case generally has an automatic appeal to
the state chief justice. - correct answer ✔✔ False
Which of the following is important because it is the source of an administrative agency's
authority and establishes the agency's scope and jurisdiction over certain matters? - correct
answer ✔✔ Enabling Statute
Which of the following is the last step in the Administrative Procedure Act's (APA's) rulemaking
process? - correct answer ✔✔ Individual parties challenge the rule in court under certain
circumstances.
and Practice Guide
Independent agencies are designated by Congress as independent of the executive branch of
the government and do not exist by virtue of the authority of the president. - correct answer
✔✔ False
One way that administrative agencies monitor the compliance of businesses with regulatory
requirements is through inspection of facilities and business sites under their jurisdiction. -
correct answer ✔✔ True
The Securities and Exchange Commission is responsible for distributing retirement and medical
benefits to eligible citizens. - correct answer ✔✔ False
In the context of the scope of administrative agency power set out in the Administrative
Procedures Act (APA), informal rulemaking is used by an agency only when Congress has
specifically indicated in the enabling statute that the agency rules must be made "on the record
after a hearing." - correct answer ✔✔ False
The losing party in an administrative law judge (ALJ) case generally has an automatic appeal to
the state chief justice. - correct answer ✔✔ False
Which of the following is important because it is the source of an administrative agency's
authority and establishes the agency's scope and jurisdiction over certain matters? - correct
answer ✔✔ Enabling Statute
Which of the following is the last step in the Administrative Procedure Act's (APA's) rulemaking
process? - correct answer ✔✔ Individual parties challenge the rule in court under certain
circumstances.
