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

Which attribute is primarily associated with administrative law?

1. Established through common practice

2. Created by judicial rulings

3. Formulated by regulatory agencies

4. Building through contract negotiation

The correct answer is: Formulated by regulatory agencies

Administrative law is primarily associated with the formulation by regulatory agencies. This branch of law governs the activities of administrative agencies of government, which are responsible for creating and enforcing rules and regulations to implement laws passed by legislative bodies. Regulatory agencies, such as the Environmental Protection Agency (EPA) or the Securities and Exchange Commission (SEC), are established to ensure compliance with specific legal standards relevant to their areas of jurisdiction. These agencies develop regulations that have the force of law, providing detailed guidelines on how legislation is to be implemented. This regulatory framework is critical in shaping how laws are applied in practical scenarios, which is a key aspect of administrative law. By setting standards and enforcing compliance, these agencies play a vital role in the implementation of public policy and ensure that agency procedures are fair and consistent. In contrast, other options refer to different sources or processes of law, such as common practices, judicial rulings, or contract negotiations, which do not directly pertain to the regulatory functions of administrative law.