C241 Study Plan Completed- Western Governors University
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C241 (C241)
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C241 Study Plan Completed- Western Governors University/C241 Study Plan Completed- Western Governors University/C241 Study Plan Completed- Western Governors University/C241 Study Plan Completed- Western Governors University/C241 Study Plan Completed- Western Governors University
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C241 STUDY PLAN
FEDERAL REGULATIONS
Chapter 23
1. What is the purpose of Administrative law?
Administrated law is created by administrative agencies to carry out legislature created by Congress (or a
state legislature) to assist in their duties and responsibilities.
2. Describe the two types of administrative agencies.
- Executive agencies: federal executive agencies include the cabinet departments of the executive
branch, which assist the President in carrying out executive functions, and the sub-agencies within the
cabinet departments. Executive agencies usually have a single administrator who is appointed by the
President to oversee the agency and can be removed by the President at any time.
- Independent Regulatory Agencies: outside the federal executive departments. Examples include the
FTC and the SEC. Rather than having a single person as its head, an independent agency usually is run
by a commission or board made up of several members, one of whom serves as the agency's chair.
Commissioners or board members typically serve for fixed terms and cannot be removed without just
cause.
3. Explain the “Administrative Procedure Act.”
All federal agencies must follow specific procedural requirements when fulfilling their three basic
functions of rulemaking, enforcement, and adjudication. In this section, we focus on agency
rulemaking. Sometimes, Congress specifies certain procedural requirements in an agency's enabling
legislation. In the absence of any Congressional directives concerning a particular agency procedure,
the APA of 1946 applies. One of Congress's goals in enacting the APA was to provide for more judicial
control over administrative agencies. To that end, the APA provides the courts "hold unlawful and set
aside" agency actions that are found to be "arbitrary, capricious, an abuse of discretion, or otherwise
not in accordance with the law." Under this standard, parties can challenge regulations as contrary to
law or as so irrational that they are arbitrary and capricious.
4. Describe and give examples of “Public Accountability” laws.
As a result of growing public concern over the powers exercised by administrative agencies, Congress
passed several laws to make agencies more accountable through public scrutiny.
Freedom of Information Act
Enacted in 1966, the Freedom of Information Act (FOIA) requires the federal government to disclose
certain records to any person or entity on written request, even if no reason is given for the request. All
federal government agencies must make their records available electronically on the Internet and in
other electronic formats.
Government in the Sunshine Act
Congress passed the Government in the Sunshine Act, or open meeting law, in 1976. It requires that
“every portion of every meeting of an agency” be open to “public observation.” The act also requires
the establishment of procedures to ensure that the public is provided with adequate advance notice of
, scheduled meetings and agendas.
Regulatory Flexibility Act
Concern over the effects of regulation on the efficiency of businesses, particularly smaller ones, led
Congress to pass the Regulatory Flexibility Act in 1980. Under this act, whenever a new regulation will
have a “significant impact upon a substantial number of small entities,” the agency must conduct a
regulatory flexibility analysis. The analysis must measure the cost that the rule would impose on small
businesses and consider less burdensome alternatives.
Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (SBREFA) allows Congress to review new
federal regulations for at least sixty days before they take effect. This period gives opponents of the
rules time to present their arguments to Congress.
Chapter 24
1. Define “Deceptive Advertising.”
Deceptive advertising is advertising that misleads consumers, either by making unjustified claims
concerning a product's performance or by omitting a material fact concerning the product's
composition or performance.
2. Explain how online deceptive advertising is monitored.
Congress passed the federal CAN-SPAM Act to combat unsolicited commercial emails. Guidelines are
also in place requiring "clear and conspicuous" disclosures of any qualifying or limiting information for
advertisements. Guidelines also require all ads must be truthful and not misleading, the claims must be
substantiated, and ads cannot be unfair.
3. Describe the actions that can be taken by the FTC (Federal Trade Commission).
The FTC receives complaints from many sources, including competitors of alleged violators, consumers,
trade associations, Better Business Bureaus, and government organizations and officials. When the
agency receives numerous and widespread complaints about a particular problem, it will investigate.
- Formal Complaint: If the FTC concludes that a given advertisement is unfair or deceptive, it drafts a
formal complaint, which is sent to the alleged offender.
- FTC Orders: If the FTC succeeds in proving that an advertisement is unfair or deceptive, it usually
issues a cease-and-desist order requiring the company to stop the challenged advertising. In some
circumstances, it may also impose a sanction known as counter advertising. This requires the company
to advertise anew—in print, on the Internet, on radio, and on television—to inform the public about
the earlier misinformation. The FTC sometimes institutes a multiple product order, which requires a
firm to stop false advertising for all of its products, not just the product involved in the original action.
- Restitution Possible: When a company’s deceptive ad leads to wrongful payments by consumers, the
FTC may seek other remedies, including restitution.
4. Describe the Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994.
, The TCFAPA directed the FTC to establish rules governing telemarketing and to bring actions against the
fraudulent telemarketers. The FTC's Telemarketing Sales Rule (TSR) requires a telemarketer to identify
the seller's name, describe the product sold, and disclose all material facts related to the sale. The
telemarketer must also remove a consumer's name from a list of potential contacts if requested. An
amendment to the TSR established to national Do Not Call Registry which prohibits telemarketers from
calling consumers who have placed their names on the list.
5. Explain labeling and packaging laws
Labels must be accurate and they must be in words that are easily understood by the consumer.
6. What is the Fair Packaging and Labeling Act?
The Fair Packaging and Labeling Act requires food product labels to identify the product, the net
quantity of the contents, the manufacturer, and the packager or distributor.
7. Explain the Postal Reorganization Act of 1970.
Under the Postal Reorganization Act, a consumer who receives unsolicited merchandise sent by US Mail
can keep it, throw it away, or dispose of it in any manner that he sees fit. The recipient will not be
obligated to the sender.
8. What is the purpose of the Federal Food, Drug, and Cosmetic Act?
The Federal Food, Drug, and Cosmetic Act (FDCA) protects consumers against adulterated
(contaminated) and mis-branded foods and drugs.
9. Describe the Consumer Product Safety Act.
The Consumer Product Safety Act of 1972 created the first comprehensive scheme of regulation over
matters of consumer safety. The act also established the Consumer Product Safety Commission which
has far-reaching authority over consumer safety. The CPSA requires distributors of consumer products
to notify the CPSC immediately if they receive information that a "product contains a defect
which...creates a substantial risk to the public" or "an unreasonable risk of serious injury or death."
10. Describe the Truth-in-Lending Act and the Fair and Accurate Credit Transactions Act.
- The TILA is basically a disclosure law. It is administered by the Federal Reserve Board and requires
sellers and lenders to disclose credit loan terms so that individuals can shop around.
The FACT Act established a national fraud alert system designed to combat identity theft.
Chapter 25
1. Define Nuisance.
Nuisance is a common law doctrine under which persons may be held liable for using their property in a
manner that unreasonable interferes with others' rights to use or enjoy their own property.
, 2. Define Negligence and Strict Liability.
- A negligence action is based on a business's alleged failure to use reasonable care toward a party
whose injury was foreseeable and was caused by the lack of reasonable care.
- Businesses that engage in ultra-hazardous activities, such as the transportation of radioactive
materials, are "strictly liable" for any injury the activities cause. In a strict liability action, the injured
party does not have to prove that the business failed to exercise reasonable care.
3. What is the purpose of the Environmental Regulatory agency?
The purpose of the EPA is to coordinate federal environmental responsibilities. All federal agencies must
take environmental factors into consideration when making significant decisions.
4. Describe the regulations designed to protect air and water.
- The Clean Air Act provides the basis for issuing regulations to control multi-state air pollution
(pollution standards and time schedules for meeting the standards; air-quality standards). It covers both
mobile sources (such as automobiles and other vehicles) and stationary sources (such as electric utilities
and industrial plants) of pollution.
-The Clean Water Act, established in 1972, assumes the following objectives: make waters safe for
swimming, protect fish and wildlife, and eliminate the discharge of pollutants into the water. Under
these schedules, the EPA limits the discharge of various types of pollutants based on the technology
available for controlling them.
-The Safe Drinking Water Act requires the EPA to set maximum levels of pollutants in public water
systems. Public water systems operators must come as close as possible to meeting the EPA’s standards
by using the best available technology that is economically and technologically feasible.
5. Explain the Toxic Substance Control Act.
The Toxic Substance Control Act regulates chemicals and chemical compounds that are known to be
toxic, such as asbestos and polychlorinated biphenyl, popularly known as PCB's. The act also controls
the introduction of new chemical compounds by requiring investigations of any possible harmful effects
from these substances.
6. Define the Superfund – CERCLA
In 1980, Congress passed the Comprehensive Environmental Response, Compensation, and Liability Act,
commonly known as the Superfund. The basic purpose is to regulate the clean up of disposal sites in
which hazardous waste is leaking into the environment.
Chapter 26
1. Describe and explain the major provisions of the Sherman Antitrust Act
Section 1 and 2 contain the provisions of the Sherman Act:
- Section 1: Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of
trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal
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