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Informal Adjudication

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Business Law

Definition

Informal adjudication refers to the process by which administrative agencies make decisions or take actions without following the formal, trial-like procedures typically associated with agency hearings or formal rulemaking. It is a flexible approach to decision-making that allows agencies to respond quickly and efficiently to a variety of situations within the context of administrative law.

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5 Must Know Facts For Your Next Test

  1. Informal adjudication is often used for routine, day-to-day decisions made by administrative agencies, such as granting licenses, issuing permits, or determining individual benefits.
  2. Agencies have broad discretion in deciding whether to use informal adjudication or formal, trial-like procedures, depending on the nature and complexity of the issue at hand.
  3. Informal adjudication is generally less time-consuming and resource-intensive than formal adjudication, allowing agencies to respond more quickly to changing circumstances or individual needs.
  4. Decisions made through informal adjudication are typically subject to judicial review, but the standard of review is often more deferential than for decisions made through formal adjudication.
  5. The use of informal adjudication has been criticized by some as lacking in procedural safeguards and transparency, potentially leading to arbitrary or biased decision-making.

Review Questions

  • Explain the key differences between informal adjudication and formal adjudication in the context of administrative law.
    • The primary difference between informal and formal adjudication is the level of procedural formality involved. Informal adjudication allows administrative agencies to make decisions quickly and flexibly, without the need for trial-like hearings, the presentation of evidence, or the issuance of a formal order. In contrast, formal adjudication requires agencies to follow more rigorous, trial-like procedures, including the opportunity for affected parties to present evidence and arguments. The choice between informal and formal adjudication is generally left to the agency's discretion, depending on the nature and complexity of the issue at hand.
  • Describe the role of administrative discretion in the context of informal adjudication.
    • Administrative discretion plays a crucial role in informal adjudication. Agencies have broad authority to decide whether to use informal or formal procedures based on their own judgment and expertise. This discretion allows agencies to respond quickly and efficiently to a variety of situations, tailoring their decision-making processes to the specific circumstances. However, the exercise of this discretion has been criticized by some as potentially leading to arbitrary or biased decision-making, as informal adjudication may lack the procedural safeguards and transparency of formal, trial-like proceedings.
  • Evaluate the potential benefits and drawbacks of the widespread use of informal adjudication in the administrative law context.
    • The use of informal adjudication in administrative law can be seen as both beneficial and problematic. On the positive side, informal adjudication allows agencies to make decisions quickly and efficiently, without the time and resource constraints of formal, trial-like procedures. This can be particularly important in situations that require a rapid response or involve routine, day-to-day decisions. However, the lack of procedural safeguards and transparency in informal adjudication has raised concerns about the potential for arbitrary or biased decision-making. There are also questions about the appropriate level of judicial review for decisions made through informal processes. Ultimately, the balance between the benefits of flexibility and the need for procedural fairness and accountability in administrative decision-making remains a subject of ongoing debate and analysis.

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