What type of law have the rules and regulations generated by the SEC come to be classified as?

Study for the Business Law Test. Use flashcards and multiple choice questions, each equipped with hints and explanations. Prepare for your exam with confidence!

The rules and regulations generated by the Securities and Exchange Commission (SEC) are classified as administrative law. This classification arises because administrative law governs the activities of government agencies, which include the creation and enforcement of regulations that impact the public and business operations.

The SEC, as a federal agency, is responsible for enforcing federal securities laws and regulating the securities industry. It defines specific rules that companies must follow to ensure fair practices in the financial markets, protect investors, and maintain the integrity of the securities markets. These rules are not created through legislative bodies like Congress, but rather through the authority granted to the SEC by statutes. This makes them a product of administrative law, as they stem from an administrative agency's regulations, rather than the laws themselves.

In contrast, civil law pertains to disputes between individuals or entities, criminal law involves regulations defining offenses against the state, and statutory law refers specifically to laws enacted by legislative bodies. Administrative law uniquely encompasses the rules set forth by governmental agencies like the SEC, which play a crucial role in regulation and compliance within specific sectors.

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