A court challenge to a promulgated rule based on the theory that the agency exceeded its authority is: a. a substantial evidence challenge. b. an arbitrary and capricious challenge. c. an ultra vires challenge. d. all of the above

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Forbes

Law

31 August, 22:58

A court challenge to a promulgated rule based on the theory that the agency exceeded its authority is: a. a substantial evidence challenge. b. an arbitrary and capricious challenge. c. an ultra vires challenge. d. all of the above

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Jakobe Cochran · Answer 1

C. An ultra vires challenge.

Explanation:

Ultra Vires means acting beyond one's powers. Ultra Vires involves an act done by a Person, a Company, Organisation or Government Institutions which exceeds their powers or authorities. Every registered company has a Memorandum of Association containing the objects of the company. For instance, the company's object may provide "to deal in the buying and selling of textiles, tiles, building materials, and paints". If the company deals in any other business not specified in the Memorandum of Association, such a company is said to have acted Ultra Vires.

A government institution may also act Ultra Vires, where a particular law guiding the affairs of the institution provides its powers. If this institution goes beyond the authorities stated therein, that government institution as acted Ultra Vires.