Which statement correctly describes a valid basis for seeking an exemption?

Which statement correctly describes a valid basis for seeking an exemption?

• A. A desire to avoid compliance costs.
• B. Good cause shown.
• C. Public opinion.
• D. A court-ordered directive.

Answer: (B)

A valid exemption hinges on showing good cause—that is, a legitimate, evidence-backed reason why applying the rule would be inappropriate or unduly burdensome in the specific situation. This goes beyond mere cost concerns or popular opinion; it requires a substantiated justification, such as undue hardship, practical impossibility, or unique circumstances that warrant relief. Public opinion isn’t a regulatory basis, and a court-ordered directive, while related to compliance, isn’t the justification itself for seeking an exemption. So the best basis to pursue an exemption is demonstrating good cause shown.

A valid exemption hinges on showing good cause—that is, a legitimate, evidence-backed reason why applying the rule would be inappropriate or unduly burdensome in the specific situation. This goes beyond mere cost concerns or popular opinion; it requires a substantiated justification, such as undue hardship, practical impossibility, or unique circumstances that warrant relief. Public opinion isn’t a regulatory basis, and a court-ordered directive, while related to compliance, isn’t the justification itself for seeking an exemption. So the best basis to pursue an exemption is demonstrating good cause shown.