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The correct answer was False.



Agency use of formal adjudication has declined since the U.S. Supreme Court's 1973 decision in United States v. Florida East Coast Railway. The case held that formal rulemaking is only required when a governing statute calls for a hearing, in its words, "on the record." Since the court's decision, agencies have increased the use of informal rulemaking, as well as informal adjudication, which now makes up nearly 90 percent of adjudication proceedings.