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This difference is vital in appreciating administrative law in common law countries. The scope of judicial review may be limited to certain questions of fairness, or whether the administrative action is ultra vires. In terms of ultra vires actions in the broad sense, a reviewing court may set aside an administrative decision if it is unreasonable under Canadian law, following the rejection of the "Patently Unreasonable" standard by the Supreme Court in Dunsmuir v New Brunswick, Wednesbury unreasonable under British law, or arbitrary and capricious under U. S. Administrative Procedure Act and New York State law. Administrative law, as laid down by the Supreme Court of India, has also recognized two more grounds of judicial review which were recognized but not applied by English Courts, namely legitimate expectation and proportionality. The actions of executive agencies and independent agencies are the main focus of American administrative law. In response to the rapid creation of new independent agencies in the early twentieth century see discussion below, Congress enacted the Administrative Procedure Act APA in 1946. Many of the independent agencies operate as miniature versions of the tripartite federal government, with the authority to "legislate" through rulemaking; see Federal Register and Code of Federal Regulations, "adjudicate" through administrative hearings, and to "execute" administrative goals through agency enforcement personnel. Because the United States Constitution sets no limits on this tripartite authority of administrative agencies, Congress enacted the APA to establish fair administrative law procedures to comply with the constitutional requirements of due process. Agency procedures are drawn from four sources of authority: the APA, organic statutes, agency rules, and informal agency practice.

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Legal reform is a tool for implementing necessary reforms, to balance competing interests, create a dynamic and sustainable economy, and build a sustainable civil society. During last decades the judiciary became active in economic issues related with economic rights established by constitution because "economics may provide insight into questions that bear on the proper legal interpretation". Since many a country with a transitional political and economic system continues treating its constitution as an abstract legal document disengaged from the economic policy of the state, practice of judicial review of economic acts of executive and legislative branches became to grow. Valery Zorkin stressed that "the «separation of powers» principle, also proclaimed in the Constitution of the Russian Federation, requires observance of judicial independence. And such independence requires proper funding of the courts and their activities. It is well known that Russian courts remain under funded. However, the cumulative economic costs suffered by both state and private enterprises as the result of under performance by various judicial institutions, especially by the courts of general jurisdiction and the arbitration courts, is at least twice the order of magnitude as the financial burden carried by the state and society in financing such judicial institutions. The elimination of under funding of the courts would definitely improve the efficiency of their work and be worthwhile. Lawyers refer to ‘the rule of law’ because a society which is governed without law leaves ordinary people at the mercy of the arbitrary abuse of power by those who are simply powerful. In some countries the rule of law is absent – think of Cambodia during the rule of Pol Pot and the Khmer Rouge, for example – and when that happens, life is very difficult for ordinary people who have no way of protecting themselves from the powerful. In societies where the rule of law exists, people may even be relatively unaware of it, because their life is not interfered with by corruption and abuse of power.

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Administrative law expanded greatly during the twentieth century, as legislative bodies worldwide created more government agencies to regulate the social, economic and political spheres of human interaction. Administrative law in the People's Republic of China was virtually non existent before the economic reform era initiated by Deng Xiaoping. Since the 1980s, the People's Republic of China has constructed a new legal framework for administrative law, establishing control mechanisms for overseeing the bureaucracy and disciplinary committees for the Communist Party of China. However, many have argued that the usefulness of these laws is vastly inadequate in terms of controlling government actions, largely because of institutional and systemic obstacles like a weak judiciary, poorly trained judges and lawyers, and corruption. In 1990, the Administrative Supervision Regulations 行政检查条例 and the Administrative Reconsideration Regulations 行政复议条例 were passed. The 1993 State Civil Servant Provisional Regulations 国家公务员暂行条例 changed the way government officials were selected and promoted, requiring that they pass exams and yearly appraisals, and introduced a rotation system. The three regulations have been amended and upgraded into laws. In 1994, the State Compensation Law 国家赔偿法 was passed, followed by the Administrative Penalties Law 行政处罚法 in 1996. Administrative Compulsory Law was enforced in 2012. Administrative Litigation Law was amended in 2014. The General Administrative Procedure Law is under way.

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