Overall Analysis
1. Enabling Statute—What was Congress thinking?
2. Constitutional Questions
3. Is informal rulemaking (quasi-legislative) or formal rulemaking (quasi-adjudicative) appropriate?
4. Is there sufficient notice?
The red highlighted material will not be covered on the exam although it is important information for understanding Admin. law. 3 ½ hrs. to complete exam.
I. The Origin and Mandate of Administrative Agencies
Purpose
1. Regulate personal behavior of individuals and businesses; licenses; etc.
2. Pursuit of social policy (strategic) a. Determine social policy b. Includes impact and cost/benefit analysis
3. Pursuit of efficiency (tactical) a. Once we agree on a social policy, how do we execute efficiently b. Also includes impact and cost/benefit analysis
Theories of Origin
1. Public Interest Theory—Idealist—Regulation is a result of a process that identifies, filters, and defines public/objective values and acts towards those ends. a. Natural Monopoly (like utilities) o Some industries’ economics of scale are sufficiently great that one producer can satisfy the entire market and demand cheaper prices than others. o Regulation controls excessively high price and wasteful competition. b. Public Goods (public television) • Justify direct govt provision of services. • Market will under-produce certain goods or services whose enjoyment cannot easily be restricted to those who pay for them. c. External Effects (air and water pollution, healthy, safety and environmental risk) • Public bads will be overproduce and we need to regulate. d. Asymmetric Information • Consumers find it too costly to acquire or evaluate info about quality of goods or services in marketplace. • Govt should prohibit outright certain unfair or unethical business practices.
2. Public Choice