What defines an interpretative rule?

Study for the Business Senior Exam. Use flashcards and multiple-choice questions with hints and explanations. Prepare confidently!

An interpretative rule is defined as a rule that expresses an agency's understanding or interpretation of the statute it administers. Such rules do not create new regulations but rather serve to clarify existing laws or agency regulations. They are intended to provide guidance to the public and help in understanding how an agency interprets and plans to enforce the statute.

This type of rule is typically less formal than a legislative rule, which may impose binding obligations and require a more rigorous process, including public notice and comment. Because interpretative rules are statements of the agency's interpretations and do not impose new legal obligations, they function to inform rather than regulate. This makes option B the correct choice, as it accurately describes the nature of interpretative rules.

The other choices reflect characteristics that do not apply to interpretative rules. For example, enforcing new regulations relates to legislative rules, while applicability across various jurisdictions does not align with the nature of interpretative rules, which are specific to the agency's jurisdiction. Additionally, requiring public input is associated with the process for legislative rules rather than interpretative rules, which do not mandate such a formal process.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy