Future Business Leaders of America (FBLA) Business Law Practice Exam

Which area of law encompasses rules created by government agencies?

1. Civil law

2. Administrative law

3. Common law

4. Contract law

The correct answer is: Administrative law

Administrative law encompasses rules created by government agencies. This area of law is crucial because it governs the activities of administrative agencies, which include federal, state, and local entities. These agencies are empowered to enact regulations and enforce laws in specific areas such as environmental protection, labor relations, and public health. Administrative law ensures that the rules set forth by these agencies are consistent with legislative statutes and that they adhere to the principles of fairness and transparency. It often involves the interpretation and application of regulations, which are necessary for the implementation of government policies. Additionally, administrative law provides a framework for reviewing agency actions and addressing disputes that arise from those actions, thus protecting citizens' rights against arbitrary or unlawful decisions by government authorities. In contrast, civil law generally deals with non-criminal disputes between individuals or organizations, common law refers to legal principles developed through court decisions rather than statutes, and contract law specifically deals with agreements between parties. Each of these areas is important in its own right but does not specifically pertain to the regulations established by government agencies as administrative law does.