Legal Foundations and Statutory/Regulatory Interpretation
Text first, context second
Statutory and regulatory interpretation starts with the words of the provision, read in context and consistent with definitions. Candidates must know the hierarchy: constitution, statute, valid regulation, then guidance and informal materials. Use canons such as plain meaning, specific-over-general, later-in-time, and whole-text reading. Mandatory language (shall, must) differs from permissive language (may); conditions, exceptions, and safe harbors must be read together. Legislative history and agency preambles may inform ambiguity but cannot override clear text. Regulations are interpreted with the same tools, and a regulation cannot exceed its statute.
Traps
Common traps include relying on a summary or FAQ instead of the operative text; ignoring a definitions section that changes ordinary meaning; treating may as mandatory; assuming an agency's litigating position is binding; overlooking effective dates and savings clauses; and misreading and versus or. Another trap is resolving an apparent conflict without checking specificity and timing.
Worked example
A rule says covered entities may retain records for five years and shall report within 30 days. A question asks whether retention is required. Because may is permissive, retention is optional unless another provision imposes a duty; the shall applies only to reporting. Rule of thumb: underline every shall and may, then locate definitions and exceptions before concluding.