Administrative Regulations assign.
Legal, Political and Ethical Dimensions
Professor Cary Sliverstein
July 18, 2011
Administrative Regulations Assignment
(1)The administrative agency in which I choose to use is the Small Business Administration (SBA). The reason why this agency and the proposed regulation are interests of mine is due to me working towards owing my own business in the future. The way this regulation that has been proposed may affect me, is by my company attempting to lend funds for expanding the business in the future.
(2)The proposed rule made by the Small Business Administration is on Business Loan Programs and Lender Examination and Review Fees. This proposed rule is geared towards a recent amendment to the Small Business Act authorizing the Small Business Administration to assess fees to lenders ...view middle of the document...
(b)Although I am in favor of your proposed regulation, the five legal theories, I could use in an attempt to have the regulation declared invalid and overturned in court are :
1) Arbitrary and Capricious, requires some proof or basis for regulation, so I would find out what grounds or basis was the regulation drafted on.
2) Substantial evidence test requires that more convincing evidence exist in support of the regulation than against it. In which the evidence in the case seems to be factual and convincing.
3) Rule that a regulation can be set aside if the agency did not comply with the APA requirements of notice, publication and public comment or input. The procedures for rulemaking must be followed in order for the regulatory process and resulting rules to be valid. Furthermore, I would make sure the comments and its period date and laws were followed, which in the case they were.
4) Another theory is Ultra vires, a Latin term or beyond its powers. An ultra vires regulation is the one that goes beyond the authority given to the agency in its enabling act. In administrative law, an act may be judicially reviewable for ultra vires in a narrow or broad sense. Narrow ultra vires applies if an administrator did not have the substantive power to make a decision or it was wrought with procedural defects and in this case the SBA did have the power to such decision.
5) Also there is the 90 day rule.,which states that during this period regulators are not permitted to promulgate new regulations since 1992.
(c) The best way I could challenge the regulation I selected for this assignment to be overturned, is that the loan program should not have to pay for the cost and fees because lenders are borrowing money to pay for things and can pay it back in time. Furthermore the loan program shouldn’t have to come out of pocket and pay the fees for the lendees who are borrowing money.