Admin Midterms 2014

Each of the four characteristics of administrative agencies to a lesser or greater degree in turn contributes to and
necessitates a highly important characteristic of administrative process or procedure, that is a) Specialization b)
Decentralization c) Delegation of function and authority d) If none of the above, supply the answer

C. Delegation of Function and Authority

The delegation of function and authority is a highly important and predominant characteristic of an administrative process and
procedure. It is the reality that the great number in size of an administrative agency, the required specialization in the different
fields in the administrative arena, the relevant issues reasonably related to the administrative procedure and the variance of
administrative duties in an administrative agency calls for the delegation of function and authority. The heads of administrative
agencies cannot possible be expected to handle each case before it personally and with such specialized knowledge necessary to
resolve the matters before him, their role is mainly of supervision and control such that the different functions and authorities in
administrative agency have to be delegated in order to bring about an effective and efficient administrative process (10 pts)

When a city or provincial prosecutor conducts a preliminary investigation and issues a resolution disposing of the case, the
power being exercised by the prosecutor is a) Rule-making, b) adjudicatory, c) Executive, d) if none of the above, supply
the answer.

D. None of the Above. Ans: Investigatory Power

In conducting a preliminary investigation and making a resolution disposing of the case, the city or provincial prosecutor is merely
exercising INVESTIGATORY POWERS. In determining whether there is probable cause sufficient to make a complaint or
information, the city or provincial prosecutor exercises inquisitorial powers by gathering information on the use through requiring
the submission of records, documents and other instruments necessary to make proper finding. He does not adjudicate on the
rights and obligations of the parties nor deos carry into effect legislation. Investigatory power is the most used power of an
administrative agency . The gathering of information and inquiring on the pertinent matters on hand provides a strong foundation
of administrative process (9pts)

The Commissioner of Internal Revenue issued a revenue regulation that interpreted a provision of a tax law. The RR
benefited taxpayer B since the computation pursuant to the said RR resulted in a lower tax liability for him. A new
Commissioner was subsequently appointed later and he revoked the RR containing the previous interpretation for being
contrary to law. In this situation a) Taxpayer B shall not covered by the new interpretation because he already acquired a
vested right b) The new interpretation shall only apply prospectively c) Taxpayer B shall be liable for the difference
between the tax assessment under the new interpretation and his earlier tax payment d) If none of the above, supply the
answer

C. Taxpayer shall be liable for the difference between the tax assessment under the new interpretation and his earlier tax payment
The new Commissioner subsequently appointed is not bound by the previous interpretation of the provision of a tax law of his
predecessor especially when such an interpretation was erroneous for being contrary to law. A successor is not bound by his
predecessor administrative interpretations and it is well within his powers to amend modify or repeal such. No vested rights are
acquired from an erroneous interpretation of law. The case at bar is parallel to Hilado v. CIR wherein a taxpayer was also made
liable for the difference (Previous commissioner erroneously interpreted a law by allowing deductions in the taxpayers’ taxable
income but his successor overturned such an correctly interpreted the provision of law) (10 pts)

The NLRC, an agency attached to the DOLE rendered a decision affirming the Arbiter’s decision ordering the
reinstatement of an employee dismissed by SMC. Unhappy with that decision, SMC filed an appeal with the Secretary of
Labor to have the decision reversed. After reviewing the case records, the DOLE Secretary reversed the NLRC. Under the
said circumstances a) The Secretary has supervision over NLRC but cannot review the said decision b) The Secretary
acted within his authority c) The Secretary has no jurisdiction over the subject of appeal or d) If none of the above supply
the answer

C. The Secretary has no jurisdiction over the subject of the appeal

The administrative relationship between the NLRC and DOLE is that of attachment. There is a lateral relationship between DOLE
(department) and NLRC (attached agency) such that their relationship mainly deals with program and planning coordination.
There is no supervision and control wherein the reversal of a subordinate’s decision is allowable. In the case at bar, the DOLE had
no jurisdiction or the power and authority to hear and determine the appeal; therefore, lacking in the essential element of having
jurisdiction over the subject matter, which is conferred by law, the proceedings that took place and the decision rendered are null
and void. (10 pts)
When Administrative agencies are expressly delegated the power to issue Rules and Regulations to implement a law, the
agency is in effect authorized to create new law or additional provisions in the law. The statement is a) True, but it must at
least be somewhat related to the existing provisions b) False, because rules and regulations only clarify the provisions c)
True, provided the law really requires additional details to be implementable d) If none of the above, supply the answer.

C. True, provided the law really requires additional details to be implementable

The rule-making power of an agency is derived from a statutory grant. The extent of such power is LIMITED to what the
ENABLING STATUTE provides. An administrative agency can partake in subordinate legislation where in it is tasked with filling
in the details in the implementation of a law, which it has full competence to do and is expressly authorized by its enabling statute
do so. In the instances where the Congress has no time or is not competent enough to deal with the details of the law that require
an administrative agency’s specialized skill or technical knowledge the Congress can delegate the task of creating new law or
additional provisions in the law for implementation and such will be valid provided that the administrative follows the prescribed
procedure and does not go beyond the scope of the statutory grant. (10 pts)

The inherent power of an administrative agency is a) Investigatory b) Rule making c) Determinative d) Executive d) If
none of the above, supply the answer

D. An administrative agency does not have an inherent power

An administrative agency’s jurisdiction and authority is conferred by the Constitution or by law. It only has such powers that are
expressly conferred or by fair and necessary implication. It only has express and implied powers and does not possess any
inherent power whatsoever. Absent any constitutional provision or statutory grant, an administrative power cannot be deemed to
have an inherent power. An implied power is not an inherent power because the former is derived from the exercises of an
administrative agency’s express power. (10pts)

What really distinguishes a court from an administrative agency with quasi judicial function is the fact that a) A court is
presided over by a judge while the other is not, b) A court has broad general jurisdiction but an administrative agency has
very limited jurisdiction c) A court is primarily vested with judicial power while administrative agency is primarily vested
with regulatory power d) If none of the above, supply the answer.

C. A court is primarily vested with judicial power while administrative agency is primarily vested with regulatory power.
A court is primarily vested with judicial power to try hear and decide on a case before it. In the exercise of its judicial power, a
court is able to adjudicate on the rights and obligations of the parties before it and make a final determination or pronouncement
on the matter of the controversy is its primary functions. On the other hand, the primary function of an administrative agency is
regulatory such that in exercising a quasi judicial function the matters handled therein (i.e. adjudication of the rights and
obligations of the parties) is merely incidental and such an agency does not and will not make any final pronouncement or
decision based on the merits of the case. The quasi judicial function is limited and restricted and as previously stated merely
incidental. (8 pts)

The power to determine when a law shall take effect is essentially a legislative one and cannot be validly delegated by
congress. The statement is a) absolutely false b) absolutely true c) false provided the task does not involve the exercise of
discretion d) if none of the above, supply the answer

C. False provided the task does not involve the exercise of discretion
The power to determine when a law shall take effect is legislative in nature. However, it can be delegated by the legislature
provided that there is no exercise of DISCRETION on the delegate’s part in order that when the power leaves the legislature the
only thing left for the delegate to do when it receives such power is to implement or carry it into effect. The legislature can validly
delegate such a power if it provides a sufficient standard such that the limits and restrictions on the power are set out and the
delegate will have no say as to what the law is. The legislature cannot delegate the power to determine what the law is but if can
delegate the power to determine how the law will be effected (e.g. in the case of contingent legislation, a law will only be effected
at the happening of a future even which an administrative agency can determine based on the sufficiency standard laid out (10 pts)

Congress enacted RA 2000 (Limited Access Highway Act) that conferred to the DPWH the authority only to “plant,
construct, maintain, and improve limited access facilities for public use wherever traffic conditions, will justify such
special facilities”. On the basis of the said Act, the DPWH issued a memorandum circular prohibiting anyone to drive any
bicycle, tricycle, motorcycle pedicab, or any not motorized vehicle on limited access highway. Under the said
circumstances, a) The circular is valid exercise of police power b) Issuance of the circular is authorized but provisions are
unreasonable c) Circular is beyond the authority of DPWH to issue d) If none of the above, supply the answer

C. Circular is beyond the authority of DPWH to issue

It is a well-established principle that the powers of an administrative agency are either expressly conferred by the Constitution or
law or by fair and necessary implication from the exercise of its express powers. The power of an administrative agency is limited
and restricted in the sense that it cannot go beyond what its enabling statute provides. In the case at bar, RA 2000 specifically
conferred to the DPWH the authority only to plan construct maintain and improve limited access facilities for public uses
wherever traffic conditions will justify such special facilities. Nowhere can it be inferred from the enabling act that the DPWH has
the authority to prohibit non-motorized vehicle from limited access highway. The circular is invalid for being issued in excess of
authority (10 pts)

For the effective implementation of some statutes, the administrative process is better than judicial process a) False,
because both processes are equally effective b) False, because courts are more effective enforcers of statutes c) True,
because courts have little or no flexibility d) true because courts are not forward looking e) If none of the above, supply the
answer

E. True because the increasing complexities of society require the specialized and highly technical determinations available in the
administrative process
The fact that the administrative process is better than in effecting the implementation of some statutes, can be illustrated by the
doctrine of primary jurisdiction. Courts cannot and will not take cognizance of any controversy, although within its jurisdiction,
when it is well within the jurisdiction of a administrative agency, especially when administrative discretion concerning matters
within an administrative agency’s specialized field and skills and those that require the resolution of highly technical matters that
only such an agency can take heed of. The administrative process is better than the judicial process in certain instances when the
courts lack the special knowledge and skill to properly implement a statute and it is only through the administrative process can
proper relief be had. (2 pts)

The passenger bus of Arling Bus Co was involved in a serious accident at the Skyway where 31 people died. In an
administrative investigation/proceeding conducted under the rules of the agency that satisfies the requirements of due
process, the Land transportation and Franchising board (LTFRB) found that the company had violated the terms and
conditions of its franchise and rendered a decision en banc revoking the franchise of ABC. Please identify the proper
remedy should be adopted by ABC and explain the legal basis in about 7 short sentences

DON’T KNOW!