How do administrative decisions and agency rules acquire binding effect, and who is bound by them?

• A. Regulations bind only the agency that created them; parties have no obligation.
• B. Regulations bind those within the agency's jurisdiction and those subject to the rule; binding to parties affected by the rule.
• C. Administrative decisions have no binding effect; only statutes bind.
• D. Agency rules are advisory and not binding on any party.

Answer: (B)

Rules issued by an agency carry binding force because they’re issued under statutory authority and published as regulations that have the force of law. When a rule applies to someone within the agency’s jurisdiction, that person or entity must comply, and enforcement can follow if they don’t. The binding reach isn’t limited to the agency itself; it covers those within the regulatory scope who are subject to the rule—i.e., the parties affected by the rule.

Administrative decisions in adjudications bind the parties involved in that decision. They also help define how the rule will be applied in similar circumstances, guiding future enforcement within the agency’s jurisdiction. In short, agency rules are binding on those subject to them, and agency decisions bind the parties to the dispute and influence subsequent applications under the governing statute.