BLAW 3310 Final Exam with Correct
Answers Graded A+ 2025-2026
Updated.
Administrative Agencies - Answer created by congress; have power and authority through
delegation of powers WHO CREATES THEM
Why Admin Agencies Are Created - Answer because Congress doesn't have the power to
monitor everything; lack expertise in many fields
Agency Rulemaking - Answer agency develops materials that help those regulated
understand what they are required to do to comply with the law
Substantive Rules - Answer administrative regulations with the same force of law as statutes
enacted by Congress; rules by agencies ARE FEDERAL LAW!
Agency Rulemaking Procedure - Answer 1. agencies must announce the rule
2. must be published in federal register
Dow Chemical Case - Answer case where SCOTUS said it was OK for EPA to fly over chemical
plant to take pics of pollution
7 Things in Agency Enforcement Power (Other Things Agencies Can Do) - Answer 1.
prohibition, req, lim., or other condition affecting freedom of a person
2. withholding of relief
3. imposition of a penalty or fine
4. destruction, seizing of property
5. assessment of damages, reimgb. compensation, costs, or fees
6. req., revocation, suspension of license
7. taking other restrictive action
When an Agency Makes a Decision, does the Business have to accept it? - Answer no, the
business can go to court
, Standing* - Answer means you're affected by the law (agency's decision)
Arbitrary and Capricious - Answer when agencies are abusive
When are Agencies not Arbitrary and Capricious? (3) - Answer 1. agency has explained facts
and policy concerns
2. those facts have basis in agency's record
3. based on those facts, a REASONABLE PERSON could reach the same decision the agency
reached
What is a Security?* - Answer a DEBT of certain form (note or bond that can be traded), or
EQUITY (stocks) --- PROFITS GENERATED BY THE EFFORTS OF THOSE OTHER THAN THE INVESTOR
1933 Securities Act* - Answer act that regulates the INITIAL offering of securities
1934 Securities Exchange Act* - Answer act that regulates trading in EXISTING securities;
requires corps. that have issued public securities to disclose information; also PROTECTS
INDIVIDUALS
Things that Are Not Securities - Answer deposits, condos as personal residences,
commodities or futures contracts
SEC v. Howey Case* - Answer case that defined what a security actually is ... profits
generated by efforts other than the investor (4 THINGS)
Securities Exempt from Regulation* - Answer debts issued by gov't., securities issued by
BANKS, religious orgs, charitable orgs, insurance policies, and annuity contracts
Prospectus - Answer material info that must be given to investor before sale closes:
1. issuer's finances and business
2. purpose of offering
3. plans for funds collected
4. risks involved in business venture
5. promoter's mgmt experience and financial compensation
Answers Graded A+ 2025-2026
Updated.
Administrative Agencies - Answer created by congress; have power and authority through
delegation of powers WHO CREATES THEM
Why Admin Agencies Are Created - Answer because Congress doesn't have the power to
monitor everything; lack expertise in many fields
Agency Rulemaking - Answer agency develops materials that help those regulated
understand what they are required to do to comply with the law
Substantive Rules - Answer administrative regulations with the same force of law as statutes
enacted by Congress; rules by agencies ARE FEDERAL LAW!
Agency Rulemaking Procedure - Answer 1. agencies must announce the rule
2. must be published in federal register
Dow Chemical Case - Answer case where SCOTUS said it was OK for EPA to fly over chemical
plant to take pics of pollution
7 Things in Agency Enforcement Power (Other Things Agencies Can Do) - Answer 1.
prohibition, req, lim., or other condition affecting freedom of a person
2. withholding of relief
3. imposition of a penalty or fine
4. destruction, seizing of property
5. assessment of damages, reimgb. compensation, costs, or fees
6. req., revocation, suspension of license
7. taking other restrictive action
When an Agency Makes a Decision, does the Business have to accept it? - Answer no, the
business can go to court
, Standing* - Answer means you're affected by the law (agency's decision)
Arbitrary and Capricious - Answer when agencies are abusive
When are Agencies not Arbitrary and Capricious? (3) - Answer 1. agency has explained facts
and policy concerns
2. those facts have basis in agency's record
3. based on those facts, a REASONABLE PERSON could reach the same decision the agency
reached
What is a Security?* - Answer a DEBT of certain form (note or bond that can be traded), or
EQUITY (stocks) --- PROFITS GENERATED BY THE EFFORTS OF THOSE OTHER THAN THE INVESTOR
1933 Securities Act* - Answer act that regulates the INITIAL offering of securities
1934 Securities Exchange Act* - Answer act that regulates trading in EXISTING securities;
requires corps. that have issued public securities to disclose information; also PROTECTS
INDIVIDUALS
Things that Are Not Securities - Answer deposits, condos as personal residences,
commodities or futures contracts
SEC v. Howey Case* - Answer case that defined what a security actually is ... profits
generated by efforts other than the investor (4 THINGS)
Securities Exempt from Regulation* - Answer debts issued by gov't., securities issued by
BANKS, religious orgs, charitable orgs, insurance policies, and annuity contracts
Prospectus - Answer material info that must be given to investor before sale closes:
1. issuer's finances and business
2. purpose of offering
3. plans for funds collected
4. risks involved in business venture
5. promoter's mgmt experience and financial compensation
