In regard to administrative agencies

Question

In regard to administrative agencies, a decision of an agency may cause substantial losses for a business by increasing the businesses operating costs and the businesses cost of hiring an attorney and discovery costs, if the business wants to fight the agencies ruling. If an agency acted in good faith in the exercise of its discretionary powers, yet the business prevails (wins) the legal action. The administrative agency

a.     must pay the business its reasonable attorney costs, but nothing else.

b.     must pay the business its reasonable attorney costs, court costs, and discovery costs, but nothing else.

c.     a and b, plus the business operating losses.

d. has no liability for any of the business costs or losses

e.     none of these

Answer 1

Firstly, I do not answer questions posted on any tutoring forum, in their entirety. Likely, a student has been asked the posted question by their Professor. Therefore, the question is posed for that student to answer, and not me. Secondly, I cannot properly answer any legal question without knowing all of the facts and circumstances regarding the given situation. Accordingly, the following response to the question posed will only be a small synopsis of an educated opinion.

More often than not, it seems that administrative agencies are indeed the bane of all businesses’ existence. However, administrative agencies do operate to regulate and keep in line many businesses, in order to ensure that the activities of those businesses meet requisite standards for their proper operation. 

When administrative agencies and businesses collide, it can be quite the ordeal. Although it is true that administrative agencies can cause businesses to lose business and incur expenses based on their decisions, that does not always mean that a business has the right to bring legal action against an administrative agency.

That being said, if a business decides to bring legal action against an administrative agency, the business better have a very strong case. This means that the business must have some proof or evidence that the administrative agency acted unreasonably, was arbitrary and capricious, or otherwise abused their discretionary power. If the business cannot show that the administrative agency acted outside of its reasonable discretionary power, then the business will not prevail in court.

I hope that with this limited response, I’ve at least given you some information to help you

answer this question.

Happy studying! :)