The Department of Labor Issued an Interpretive Rule (Opinion Letter)

question 329

Multiple Choice

The Department of Labor issued an interpretive rule (opinion letter) in 2001 about how mortgage-loan officers were to be treated with respect to overtime pay. The rule was reversed in 2006 then reversed again in 2010. The Mortgage Bankers Association objected to the change, contending the 2010 ruling was invalid because there was no notice-and-comment period for the change. On appeal, the Supreme Court held that notice-and-comment:

• A) ​did not apply to an interpretive rule when the rule was changed, only when it is first enacted.
• B) ​did not apply to an interpretive rule when the impact was "de minimus."
• C) ​applied to a "substantive" interpretive rule that affected wage payments.
• D) ​applied to an interpretive rule when a change could "impact compensation."
• E) ​none of the other choices are correct.

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Definitions:

Fire Sale

A sale of goods at extremely discounted prices, typically due to the seller's urgent need to dispose of these items quickly.

Demand Uncertainty

Refers to the unpredictable nature and variability of customer demand for products or services, making it challenging to plan effectively.

Product Availability

Refers to the extent to which goods or services can be bought from a company at any given time.

Cost of Stocking Out

The financial loss and potential customer dissatisfaction resulting from insufficient inventory to meet demand.