RCC Legal and Regulatory Frameworks 2 — Questions and Answers
Question 1: Under the Administrative Procedure Act (APA), which type of rulemaking requires agencies to publish a notice of proposed rulemaking (NPRM) and allow public comment?
- Formal rulemaking
- Informal (notice-and-comment) rulemaking (Correct answer)
- Interpretive rulemaking
- Exempted rulemaking
Correct answer: Informal (notice-and-comment) rulemaking
Informal rulemaking under APA Section 553 requires an NPRM and public comment period before a final rule is issued.
Question 2: Which legal doctrine holds that courts should defer to a federal agency's reasonable interpretation of an ambiguous statute it administers?
- Stare decisis
- Chevron deference (Correct answer)
- The non-delegation doctrine
- Constitutional avoidance
Correct answer: Chevron deference
Chevron deference (from Chevron U.S.A. v. NRDC, 1984) directs courts to defer to agencies' reasonable statutory interpretations.
Question 3: A company discovers that a product defect may violate federal safety regulations. Under strict liability tort principles, which factor is LEAST relevant to establishing liability?
- The product was defective when it left the manufacturer's control
- The defect caused the plaintiff's injury
- The manufacturer intended to cause harm (Correct answer)
- The plaintiff suffered actual damages
Correct answer: The manufacturer intended to cause harm
Strict liability does not require proof of intent or negligence — only that the product was defective and caused harm.
Question 4: Which federal law establishes the framework for protecting individually identifiable health information held by covered entities?
- FERPA
- GLBA
- HIPAA (Correct answer)
- COPPA
Correct answer: HIPAA
HIPAA's Privacy Rule and Security Rule govern the protection of protected health information (PHI) by covered entities and business associates.
Question 5: When a state law directly conflicts with a valid federal law on the same subject, which constitutional principle determines that federal law controls?
- Federalism
- The Commerce Clause
- The Supremacy Clause (Correct answer)
- The Necessary and Proper Clause
Correct answer: The Supremacy Clause
The Supremacy Clause (Article VI) establishes that the Constitution and federal laws are the supreme law of the land, preempting conflicting state laws.
Question 6: Which enforcement mechanism allows the SEC to seek disgorgement of ill-gotten gains from securities law violators in addition to civil penalties?
- Cease-and-desist orders only
- Criminal indictment
- Civil enforcement actions in federal court (Correct answer)
- Administrative hearings only
Correct answer: Civil enforcement actions in federal court
The SEC can file civil enforcement actions in federal court to seek disgorgement, injunctions, and civil monetary penalties.
Question 7: Under the Clean Air Act, which category of pollutants requires the EPA to set National Ambient Air Quality Standards (NAAQS)?
- Hazardous air pollutants (HAPs)
- Criteria pollutants (Correct answer)
- Greenhouse gases only
- Persistent organic pollutants
Correct answer: Criteria pollutants
NAAQS are set for six criteria pollutants (including ozone, PM2.5, CO, NO2, SO2, and lead) to protect public health and welfare.
RCC Legal and Regulatory Frameworks 2
Under the Administrative Procedure Act (APA), which type of rulemaking requires agencies to publish a notice of proposed rulemaking (NPRM) and allow public comment?