Fact Pattern 15-1 Congress Creates the Federal Authority on Homelessness (FAH) and Gave

question 263

Multiple Choice

Fact Pattern 15-1
Congress creates the Federal Authority on Homelessness (FAH) and gave it broad powers to issue regulations, conduct searches, investigate areas where homelessness is a particular problem, and bring actions against those who discriminate against the homeless, or fail to follow FAH regulations.
In March 2009, FAH issued a rule that businesses with 15 or more employees cannot discriminate against the homeless in employment. The regulation states that businesses must take steps to recruit homeless people as employees and must provide homeless employees with adequate shelter. No public hearings are held and the final rule was published in the Federal Register in June, 2009.
In October, 2009 FAH inspectors arrive at Elroy's Tackle Shop in Eureka, California. Elroy employs 18 people, including clerks, cashiers, and fishing guides. The inspectors ask Elroy what steps he has taken to hire a homeless person. He tells the inspectors that he has taken no steps, they fine him $5000 and inform him that he had better take such steps soon.
Elroy did not know FAH existed or that he had a duty to try to hire homeless people. He calls his attorney, Maia, and asks her what to do. She suggests that he file a complaint stating that FAH failed to follow proper procedures when it issued the rule.
-Refer to Fact Pattern 15-1. If a court were to review actions of the FAH in promulgating the June, 2009 rule, what scope of review would a court use?

• A) a low level of scrutiny because only technical issues are involved
• B) strict scrutiny because procedural issues are involved
• C) mid-level scrutiny required of all new agency regulations
• D) arbitrary scrutiny as Congress required in the statute
• E) de jure scrutiny required of all new agency regulations

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Definitions:

Economic Losses

The decrease in financial value or resources typically due to business activities or adverse economic conditions.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Investment Rates

The percentage of an asset's value that is being invested or the rate at which capital is being used to generate economic activity.

Higher Incomes

Increased earnings of individuals, households, or nations, typically leading to more disposable income and consumption.