Question

In: Economics

Can federal agencies make their own rules and prosecute those who violate the rules?

Can federal agencies make their own rules and prosecute those who violate the rules?

Solutions

Expert Solution

Federal agencies need to perform their duties effectively and in order to facilitate them to do so they are given special powers to coordinate and monitor certain administrative activities—especially in certain sensitive areas like medical equipment, investment and stocks monitoring and so on. Though it must be noted that there is a limit imposed upon the extent to which these agencies can make rules since in a political set up that is predominantly ‘people-based’, meaning where the representatives are directly elected by the people, all the agencies are ultimately accountable to the ‘voter’.

The agencies are allowed to make rules provided they are explicitly within the purview of ‘society’s interest ‘ and within the broad framework of the prevailing law of the nation. The agencies must provide statistically proven and well researched data from realistic samples and explicitly state the need for the promulgation of such rules.

The agencies must adhere to their own rules, though in case of difference they cannot by themselves prosecute those who violate it but have to approach the court in case of such a ‘need’--though  'judicial agency ' is the only agency that can look into the violation of rules.

In case the rule is not in the common interest of the general public or is not ‘clear’ in intent then the agency will not be allowed to formulate the rule and it has then to necessarily abide by the law.

It has to be kept in mind that rule making by a public agency is a task that involves many stake holders—the public, at large though and hence whatever is the ‘rule’ or the process of making the rule has to be undertaken keeping the larger interests of the society.

Though , many a time, some laws do expose a certain amount of ambiguity in themselves, in such cases where there is lack of clarity in the promulgation of the law , the agency is allowed to clarify about the ambiguity and formulate rules for easy processing of the rule. Such clarification are binding on both parties whenever there is a conflict of interests.


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