Under what conditions may an agency's discretionary determinations be set aside?

Under what conditions may an agency's discretionary determinations be set aside?

• A. Only if there is no rational basis for the exercise of discretion or the act is arbitrary or capricious
• B. Only if there is policy disagreement
• C. Only if there is a procedural defect
• D. Never

Answer: (A)

The key idea is how courts review discretionary agency actions. A decision by an agency can be set aside only if it lacks a rational basis or is arbitrary and capricious. In practice, this means the agency must show a logical connection between the facts and the conclusion, and it must consider the relevant factors and evidence. If the agency’s reasoning is irrational, or it rests on an improper basis or ignores important factors, a court may void the action. Policy disagreements aren’t enough to overturn a decision—the agency has leeway within its expertise as long as its choice is rationally supported. Procedural flaws can lead to remand to cure issues, but they don’t automatically void a rational decision. So the best answer is that discretionary determinations may be set aside only when there is no rational basis or when the action is arbitrary or capricious.

The key idea is how courts review discretionary agency actions. A decision by an agency can be set aside only if it lacks a rational basis or is arbitrary and capricious. In practice, this means the agency must show a logical connection between the facts and the conclusion, and it must consider the relevant factors and evidence. If the agency’s reasoning is irrational, or it rests on an improper basis or ignores important factors, a court may void the action.

Policy disagreements aren’t enough to overturn a decision—the agency has leeway within its expertise as long as its choice is rationally supported. Procedural flaws can lead to remand to cure issues, but they don’t automatically void a rational decision. So the best answer is that discretionary determinations may be set aside only when there is no rational basis or when the action is arbitrary or capricious.