Quiz 3: Business Regulation

An administrative law statute was passed and proclaimed in force on January 1, 2003, that prohibited anyone from operating a pet supply business unless they were registered under the Act. Harvey operates a pet supply business. Which of the following statements is correct? A) Harvey can ignore the law because he was carrying on his business before the law came into effect. B) Harvey must register with the appropriate agency in order to lawfully carry on his business. C) If Harvey ignores the law, he has violated a criminal law statute. D) Registration is only a guideline, and registration is an option only. E) Harvey has the option of registering with the appropriate agency in order to comply with the law.

Harvey decides to register his business as a pet supply firm as required by the new law. He applies for registration but is turned down because the agency's policy rules state that anyone convicted of theft in the last five years may be denied registration. Harvey was convicted of a minor theft as a teenager five years ago. He decides to appeal the denial to the Business Appeal Tribunal established under the Act to hear appeals. Which of the following statements is correct? A) The Business Appeal Tribunal is an administrative tribunal. B) Bodies like the Business Appeal Tribunal have no powers outside those granted to them under the Act. C) Tribunals such as the Business Appeal Tribunal must treat people who appeal in a fair manner, and give them a fair hearing. D) All of these statements are true. E) All of these statements are false.

Legislation is passed to establish a governing body for a specialized medical group, and to grant the body power to control and supervise the particular type of specialists. Which of the following are true? A) The governing body normally would not be allowed to set educational and training standards for the medical specialty. B) The governing body would not normally be allowed to prevent persons from practising the medical specialty even though a high degree of skill is required to perform the medical procedures. C) Protection of the public would not be a part of the policy mandate of the governing body. D) None of these statements are true. E) All of these statements are true.

Under the Ontario Travel Industry Act, someone who is turned down for registration as a travel agent may appeal from the Registrar's decision to the Commercial Registration Appeal Tribunal, a body appointed by the Ministry of Commercial & Consumer Relations. A conviction for theft within the previous five years is grounds to refuse registration. Ben, who had a conviction for shoplifting ten years ago, has been turned down, and he has decided to appeal. Which of the following is true? A) The Commercial Registration Appeal Tribunal is an administrative law body, not a court. B) The hearing in front of a Tribunal like this is not conducted in the exact same way as a trial in a court. C) Bodies like the Tribunal have no power to establish procedures outside of those set out under the relevant legislation. D) Tribunals such as this must treat people who appeal to them in a fair manner, but they do not have to follow the same rules of evidence and procedure as a court. E) All of these statements are false.

Land development is one very important business regulation that is, for the most part, delegated to which level of government? A) Federal B) Provincial C) Local/Municipal D) Land development is unregulated E) All of these levels of government regulate land development

Administrative tribunals are created under the authority of: A) A statute B) A regulation C) An Order-in-Council D) A ministerial order E) A policy

Jamal is opening a restaurant in Waterloo, Ontario. He plans to purchase an old house and renovate it to operate his restaurant. Which of the following statements is accurate concerning the issue(s) for which he will be required to seek the approval of a municipal administrative tribunal? A) Land development B) Restaurant Licensing C) Employment Standards Board D) Land development and Restaurant Licensing E) All of the responses are correct.

Which of these administrative tribunals were created to protect consumers and the public? A) Egg Marketing Board B) Canadian Radio-television and Telecommunications Commission C) Securities Commission D) Energy boards E) All were created for consumer and public protection.

How does the Securities Commission protect investors from unfair and fraudulent practices? A) Require the filing of a prospectus B) Require distribution of the prospectus C) Require disclosure of insider trading D) Licensing investment dealers E) All of these

What sanction can the Ontario Securities Commission not levy on individuals who breach the Securities Act? A) Fines B) Damage compensation to harmed parties C) Retraction of registration as an investment dealer D) Revocation of licence of a securities salesman E) Prohibition from acting as a director

Administrative laws set out broad policy statements and establish a board, commission or agency to ensure compliance by business.

Administrative agencies, boards or commissions usually use registration or licensing to control business subject to the administrative law.

Administrative agencies, boards or commissions enforce criminal laws.

Decisions of administrative agencies, commissions or boards that revoke a licence or registration are unenforceable because they are not courts.

All administrative laws are criminal laws and enforceable as such even though they are not part of the Criminal Code.

The professions of medicine, law and accounting are governed by bodies established under administrative laws.

An administrative body may revoke a licence or registration of a professional person at any time without disclosing its reasons.

An administrative agency, commission or board cannot revoke the licence or registration of a business without giving the business an opportunity to object.

Administrative agencies commissions or boards are usually given the power to make procedural rules under the legislation that they are required to enforce.

Decisions of administrative bodies that affect the right of businesses to operate or professional persons to practise their profession must be made in accordance with the rules of natural justice.

Administrative bodies must usually hold a hearing to allow persons affected by a proposed decision to appear and defend against such action before a decision is finalized.

There is no appeal from a decision of an administrative body that arbitrarily revokes the licence to practise of a professional person.

The net result of governments exercising greater control over the activities of citizens is the creation of a large bureaucracy at provincial and federal levels of government, and a substantial restriction of the freedom of the individual through many and varied regulations.

Quebec is no different than the rest of the provinces in creating administrative law tribunals over most major aspects of commercial activity.

In some provinces, if objection is raised to a planning decision at the local level, decisions are not subject to appeal to a provincial body.

The concept of 'natural justice' includes the notion that procedural rules can be made retroactive.

Legislation is passed to protect the public and control the business activities of travel consultants, and to establish an agency to carry out the mandate. If the control is to take the form of licensing, outline a process that the agency might establish to address appeals where a licence is denied.

A large part of the body of administrative law is directed at the control or regulation of business-related activity, and businesspersons and corporations alike must be aware of the many administrative bodies or agencies that can impact their operations. Explain why this awareness is important and give three examples of some of the activities that fall under the control of regulatory agencies, commissions, boards, or nongovernmental bodies.