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The correct answer was the arbitrary-or-capricious test.




Administrative State
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The arbitrary-or-capricious test is a legal standard of review used by judges to assess the actions of administrative agencies. It was originally defined in a provision of the 1946 Administrative Procedure Act (APA), which instructs courts reviewing agency actions to invalidate any that they find to be "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law." The test is most frequently employed to assess the factual basis of an agency's rulemaking, especially informal rulemakings.[1][2][3][4]

Background

The Administrative Procedure Act (APA) is a federal law passed in 1946 establishing uniform procedures for federal agencies to propose and issue regulations, a process known as rulemaking. Under the APA, final agency decisions (such as those made during rulemaking or adjudication) are subject to judicial review, usually with a six-year statute of limitations. The APA provides for judicial review for persons and parties "adversely affected or aggrieved by agency action within the meaning of a relevant statute" or suffering "legal wrong because of agency action."[1][2][3]

The APA establishes two standards of review for courts assessing the actions of administrative agencies: arbitrary-or-capricious and substantial evidence. The latter standard is required by the APA in cases involving decisions made through the formal rulemaking or formal adjudication processes. The arbitrary-or-capricious test, while applicable to all agency decisions, is most frequently used to review the factual basis of informal rulemakings. According to the Regulatory Group and the Center for Effective Government, in practice, these two tests are applied in very similar ways.[1][4][2]

See also

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Footnotes