Agency adjudication is a formal decision-making process used by a government agency to resolve disputes or enforce regulations; when is it typically used?

• A. A private arbitration between individuals.
• B. A formal decision-making process by a government agency to resolve disputes or enforce regulations.
• C. A process of legislative intent.
• D. A court's review of agency actions.

Answer: (B)

Agency adjudication is used whenever a government agency must resolve a dispute or determine compliance with regulations through a formal, quasi-judicial process. This means the agency conducts hearings, evaluates evidence, and issues a binding decision—much like a court, but within the agency itself. It’s typical in enforcement actions, where penalties or sanctions are at stake, and in licensing or other regulatory determinations where the agency must decide rights or duties of regulated parties.

Private arbitration, by contrast, is a private dispute-resolution method outside government. Interpreting legislative intent is about understanding statutes, not deciding regulatory disputes. A court review of agency actions happens after the agency has made its decision, not during the agency’s own decision-making process.