Ch. 8 Bank: Business Torts, Ch. 7 Bank: Business Crime
Under RICO, business owners can be criminally liable for violations even though they were not directly running the business.
True
Under the Federal Computer Fraud and Abuse Act, unauthorized access to government computers is a felony.
True
Voluntary reporting of criminal violations reduces a company's fines under the federal sentencing guidelines.
True
Writing a glowing letter of recommendation for someone in your organization who was accused of misconduct without mention of the charges can result in liability.
True
A false statement that impeaches someone's honesty is defamatory.
True
A newspaper photographer entering a delivery room and taking a picture of Julia Roberts delivering her twins has invaded her privacy.
True
A screensaver program that uses the likeness of a person is commercial appropriation.
True
A witness in a high profile criminal trial is a public figure.
True
Asking a buyer to break their existing contract with another supplier is tortious interference.
True
Assumption of risk is a complete defense to negligence.
True
Assumption of risk is not a defense unless there was full information prior to the risk being assumed
True
Assumption of the risk requires knowledge of the risk and voluntarily doing it.
True
Bond or bail is established at the initial appearance.
True
Contributory negligence is a complete defense to negligence.
True
Contributory negligence, if established, is a complete defense to negligence.
True
Corporate managers have the right to remain silent when questioned about criminal matters.
True
Corporate officers cannot invoke the Fifth Amendment for a corporation.
True
Embezzlement is theft by an employee.
True
Employer privilege statutes are those that provide employers with defenses to defamation suits when they have shared information on former employees with prospective employers.
True
Few states follow the doctrine of contributory negligence.
True
For document destruction under SOX, the potential penalty is 20 years in prison and fines.
True
Fourth Amendment rights still apply on the Internet.
True
HIPAA is a federal law for medical privacy.
True
HIPAA is a federal privacy law that concerns medical information.
True
In most states, letters of reference are exempt from liability for defamation.
True
Involvement of the top officers in corporate crimes increases the penalty under the U.S. sentencing guidelines.
True
Justin Beiber is an example of a public figure for purposes of proving malice.
True
Landowners owe duties to people who enter their property.
True
Members of Congress enjoy an absolute privilege for their speech while on the floor.
True
Mens rea can be established without a confession.
True
Mens rea is the particular mental state required to establish a crime.
True
Monitors are often required by the Justice Department as part of a settlement of charges of corporate violations of criminal law.
True
Opinion and analysis of a person's conduct are not defamation if the underlying facts are correct.
True
Posting false information about a person to an Internet blog would be publication.
True
Public figures must prove malice to establish a case of defamation against a newspaper.
True
RICO applies only to repeat offenders.
True
RICO is a federal criminal statute.
True
Racketeering acts under RICO include theft, burglary, and arson.
True
SOX is the shorthand for the Sarbanes-Oxley business crime legislation.
True
Slander is oral defamation.
True
Some existing criminal statutes apply to activity over the Internet, such as statutes that prohibit money laundering.
True
Speeding is a breach of duty for negligence purposes.
True
State anti-spamming statutes are tied to the volume of messages.
True
Tapping into federal income tax returns to get information is a violation of the Counterfeit Access Device and Computer Fraud Act.
True
The Anti-Spam Technical Alliance is an industry group working to fight spam.
True
The Burnett v. National Enquirer, Inc.case is a famous one involving defamation.
True
The Dodd-Frank Wall Street Reform and Consumer Protection Act is also known as the Financial Services Reform Act.
True
The Economic Espionage Act makes it a crime to take trade secrets by computer.
True
The Sixth Amendment is the right-to-speedy trial amendment.
True
The USA Patriot Act requires those handling large sums of cash to verify the sources of those funds.
True
The collapses of Enron, WorldCom, Adelphia and other companies in 2001-2002 led to Congress passing the Sarbanes-Oxley Act.
True
The defendant enters his/her plea at the arraignment.
True
The employer privilege statutes provide employers with some defenses for candor in references.
True
The exceptions for obtaining warrants include evidence in "plain view."
True
The failure to follow crime prevention programs can result in harsher sentences under the U.S. corporate sentencing guidelines.
True
The failure to follow industry code is a breach of duty.
True
The key to imposing criminal liability on a company's employees is proving their active involvement or their actual knowledge of wrongdoing.
True
The media have a qualified privilege in defamation cases.
True
The purpose of causation is to tie the breach of duty to the resulting injury.
True
The shopkeeper's privilege is a defense to false imprisonment if the detention is reasonable.
True
The tort of contract interference requires knowledge of an existing contract between two parties.
True
The transfer of copyrighted material worth over $1000 over the Internet is a crime.
True
The use of someone's photo for commercial purposes without their permission is invasion of privacy.
True
The use of someone's voice for commercial purposes without their permission is appropriation.
True
The white-collar kingpin statute imposes mandatory sentences on the executives who mastermind criminal activity.
True
There are three invasion of privacy torts.
True
To establish assumption of risk, the defendant must show that the plaintiff was aware of the risk and accepted it voluntarily.
True
Warrants are not required in cyberspace.
False
An indictment is: a. a document issued by the grand jury. b. issued after a preliminary hearing. c. followed by an information. d. none of the above
A
A local liquor store posts the checks of customers that are returned from the bank. The store manager says the public display of the checks is a good way to deter other bad-check writers. The display of the checks is: a. an invasion of privacy. b. defamation. c. protected by a qualified privilege. d. none of the above
A
A-Plus Linens sent the following notice to John C. Lincoln Hospital: "We'll pay you. Drop your current linen service and we'll give you $5 for every 100 pounds of linen you send our way." The notice sent by A-plus: a. is contract interference. b. is defamatory. c. is invasion of privacy. d. none of the above
A
Ann McMillan is a CPA with a public accounting firm. A client of Ann's has called to tell her that the SEC is investigating the company for possible misrepresentations in the company's financial reports. Ann is worried that she may have pushed the envelope in allowing some of the revenues of the client to be reported as they were. Ann shreds several sets of notes from her meetings with the client on revenue recognition. Ann a. is probably guilty of obstruction of justice. b. has done nothing wrong because the notes are privileged communication the SEC is not entitled to have. c. has not committed obstruction of justice because the SEC has not contacted her. d. none of the above
A
Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crest's director of operations and stated, "Look, sign with us. We'll take care of whatever damages you owe Galley." Suppose Mealco added the following phrase, "Galley is going under fast. They haven't paid rent in five months and their rent is $15,000 per month." Galley is current on its rent, and its rent is $5000 per month. Mealco's statements: a. are defamatory. b. constitute the tort of negligence. c. are covered under the shopkeeper's privilege. d. none of the above
A
Hamburger Hamlets, Inc. is a chain of fast-food restaurants. Its major competitor is Sam's Sandwiches, Inc. Sam's Sandwiches' public relations vice president issued the following (false) statement, "We have documented proof that Hamburger Hamlets uses horse meat in its burgers." Which of the following statements is true? a. Sam's is liable for defamation. b. Sam's is liable for public disclosure of private facts. c. Sam's is liable for negligence. d. Sam's has not committed a tort.
A
How many people must have heard or read a statement for there to be publication for purposes of defamation? a. one b. at least two c. there must be widespread community knowledge d. it must be heard simultaneously by at least two people
A
John Reisen posted the following message in a chat room, " MIC Corporation will have to restate its earnings for the past 3 years. Its CEO will resign in disgrace because he is responsible." The message is false and MIC Corporation's shares lose 45% of their value before the company can stop the rumor. a. Reisen has committed the tort of defamation. b. Reisen has not committed the tort of defamation because there is no publication. c. Reisen has not committed defamation because there are no damages to the company, only the shareholders. d. both b and c e. none of the above
A
Most RICO charges involve: a. mail fraud, wire fraud or securities fraud. b. organized crime. c. wage tax violations. d. individuals and not companies.
A
Representative Pete Stark said the following in a speech on the floor of the U.S. House of Representatives, "You're going to spend it to blow up innocent people if we can get enough kids to grow old enough for you to send to Iraq to get their heads blown off for the president's amusement." Representative Stark: a. is protected from defamation liability because of the privilege for elected officials. b. is liable to the president for defamation because the statement was not related to government issues. c. is not liable for defamation because of the public figure privilege. d. both a and c
A
The "But for" test: a. is the test for causation. b. is the test for proximate cause. c. has been eliminated as the causation test in negligence cases. d. none of the above
A
The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. Suppose that the restaurant that had the E-Coli outbreak in 1999 was Saguaro Buffet, not the Saguaro Grill. The Arizona Daily Desert View: a. is liable to the Saguaro Grill for libel. b. is liable to the Saguaro Grill for defamation. c. is liable to the Saguaro Grill for invasion of privacy. d. none of the above.
A
The Fifth Amendment: a. affords protection against self-incrimination. b. can be used by a corporation. c. can be used by officers to prevent disclosure of corporate records. d. none of the above
A
The Fourth Amendment protections: a. apply to individuals. b. do not apply to corporations. c. do not apply to corporate officers. d. all of the above
A
The Fourth Amendment: a. is the privacy protection amendment. b. provides the right for a jury trial. c. provides the protection against self-incrimination. d. none of the above
A
The distinguishing element between intentional torts and negligent torts is: a. intent. b. level of damages. c. causation. d. All of the above are distinctions.
A
The mens rea required for theft is: a. intent to take the property permanently. b. intent to borrow the property. c. general intent to commit a crime. d. none - strict liability crime. e. none of the above
A
This Act prohibits circumventing encryption of copyrighted works for unauthorized copying. a. DMCA b. CADCFA c. CFAA d. RICO
A
Troy Nolan, age 17, was in a Games and Stuff store browsing. Troy frequented Games and Stuff but did not always make a purchase. After 45 minutes of looking, Troy picked up his skateboard, put his hand in his pocket, and headed toward the door. The day manager yelled from the back of the store to the cashier at the front of the store, "Stop the kid with the skateboard. He's stolen two games." There were 22 people in the store who heard the statement. Troy had not taken the games. Troy: a. will be successful in a defamation suit against Tower. b. has no course of action because of the shopkeeper's privilege. c. has no basis for recovery. d. could recover only for false imprisonment.
A
When compensatory damages are substantial, the United States Supreme Court ruled that punitive damages are allowable if the ratio of punitive damages to compensatory damages is: a. 1:1. b. 2:1. c. 3:1. d. 1:2.
A
Which of the following is not a requirement of mens rea? a. a specific act b. the state of mind required for the crime c. the intent to deprive d. All of the above are required for mens rea.
A
A dentist makes a mistake while she is working on a patient. reasonable_____ standard. a. person b. dentist c. physician d. citizen
B
A witness testifying at trial about the trial has a(n) _____ privilege. a. qualified b. absolute c. temporary d. spousal
B
At which of the following procedures may a defendant present evidence? a. initial appearance b. trial c. grand jury d. appeal
B
Contract interference: a. requires involvement by more than one third party. b. requires proof of intent to interfere. c. is a federal crime. d. requires proof of misappropriation.
B
Exceptions to the warrant requirement include: a. RICO violations. b. plain view doctrine. c. no available magistrate. d. records under the FCPA.
B
Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crest's director of operations and stated, "Look, sign with us. We'll take care of whatever damages you owe Galley." Mealco's statements: a. are defamatory. b. constitute the tort of contract interference. c. constitute the tort of negligence. d. none of the above
B
If a judge requires a guilty defendant to run a newspaper ad stating the defendant is guilty of certain crimes, this is an example of a _____ punishment. a. community service b. shame c. blatant d. public
B
In an opinion column published in wallstreetbuzz.com, a columnist wrote, "James Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed shareholders blind through his accounting slights of hand. Jackson insists that he has scruples. I don't know about that but if he does have scruples you can bet they belong to somebody else." The columnist: a. has committed the tort of libel. b. is protected from defamation liability under the opinion/analysis quasi-privilege. c. cannot be protected from defamation liability by the opinion/analysis privilege if the statement was published. d. none of the above
B
In criminal procedure, the initial appearance: a. is the preliminary hearing. b. is where bail is set. c. follows the grand jury proceedings. d. is where a plea is entered.
B
In order to establish criminal liability of the directors of a corporation: a. a prosecutor need only establish that the corporation committed a crime. b. a prosecutor must establish that the directors had criminal intent. c. the corporation is liable for criminal acts but the directors are not liable. d. none of the above
B
James Keller was an employee at Radical Boards, Inc. Radical Boards is a surf and skateboard shop that also sells clothing. While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms. When confronted with the peep holes, Keller denied every using them and indicated that they were there to prevent shoplifting. The shop manager was told to fire Keller. Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits. Keller was able to describe her not-generally-seen birthmarks to her. Radical Boards: a. cannot be held liable to the teen and her mother because it did engage in the conduct. b. could be held liable under a theory of negligent failure to supervise. c. is no longer liable because it terminated Keller. d. has not committed any tort because watching customers in dressing rooms in part of a merchant's right. e. none of the above
B
Jane Mitchell, age 16, was shopping at her neighborhood Osco Drug Store. She had been looking at magazines as she waited for a friend. She decided to purchase a Tiger Beat magazine and then wait for her friend outside the store. She paid for the magazine, but as she headed for the door, the store manager used the store's loudspeaker system to announce, "You, with the green hair and the maroon Doc Marten's on. Yes, you, by the front of the store. I saw you take that magazine. Stop right there. I have a gun pointed at you." The manager's actions: a. are protected by the shopkeeper's privilege. b. constitute defamation. c. were excessive but will not result in any liability. d. none of the above
B
Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker. a. Because of the violation of Jason's rights in the officers' failure to give the Miranda warnings, the case must be dismissed. b. The case can still proceed with the DNA evidence. c. The case can proceed but only with the victim's testimony. d. none of the above
B
Joan owns a citrus tree farm near Mesa, Arizona. Joan and her family have fertilized the trees each spring for 52 years. The irrigation for the trees carries the fertilizer remnants into the Salt River. When EPA investigators discover the fertilizer in the Salt River and trace the unique brand to Joan, they indict her for violation of the Clean Water Act, for the discharge of a substance into a waterway. Joan responds, "I didn't know there was fertilizer. I was just letting water flow." a. Joan has sufficient mens rea for the crime. b. Joan can rely on the Ahmad case and escape criminal liability. c. Joan can be held criminally liable for negligence. d. none of the above
B
Punitive damages are: a. generally not available in tort cases. b. often awarded in cases of contract interference. c. only available in negligence actions. d. none of the above
B
The "Know Thy Customer" program: a. is a federal program directed at commercial bribery prevention. b. is a federal program related to detecting money laundering. c. is an unconstitutional federal program. d. both a and c
B
The CAN-SPAM Act: a. is part of Sarbanes-Oxley. b. allows companies to bring suit against spammers for their unauthorized use of their servers. c. has been declared unconstitutional. d. none of the above
B
The Economic Espionage Act covers: a. only international commercial transactions. b. the copying, downloading or electronic transfer of trade secrets. c. bribes to obtain government contracts. d. only national stock exchange companies.
B
The Miranda warnings: a. must be given or the case is dismissed. b. are based on Fifth Amendment rights. c. are based on Fourth Amendment rights. d. none of the above
B
The No Electronic Theft Act: a. prohibits the use of the Internet for personal e-mail on company time. b. prohibits the transfer of copyrighted material worth over $1,000 over the Internet. c. prohibits economic espionage. d. resulted from the V olkswagen/GM espionage case.
B
The USA Patriot Act: a. has been declared unconstitutional. b. expanded the Money Laundering Control Act. c. applies only to banks. d. none of the above
B
The landmark case for proximate cause is: a. Burnett b. Palsgraf c. Pichardo d. Midler
B
The purpose of an arraignment is to: a. issue an indictment against the defendant. b. set the trial date. c. provide the defendant with the opportunity to appear before the grand jury. d. ensure that the Miranda warnings are given.
B
The purpose of the initial appearance is to: a. issue an indictment against the defendant. b. set the terms of release (if any). c. allow the judge to issue an information. d. provide the defendant with the opportunity to appear before the grand jury.
B
The shopkeeper's privilege applies: a. regardless of the amount of time the shopper is detained. b. even if the shopkeeper made a good-faith mistake. c. only if a security guard is used by the store. d. only if it turns out that the customer has stolen something.
B
The tort of false imprisonment: a. requires proof of some actual damage to the plaintiff. b. is also known as the "shopkeeper's tort." c. requires proof of emotional distress. d. no longer exists in states that have adopted the shopkeeper's privilege.
B
When judges are determining sentences for defendants under the Federal Sentencing Guidelines, any facts other than the defendant's prior conviction must be established by a jury beyond a reasonable doubt; this ruling happened in the famous case of the United States v. _____. a. Park b. Booker c. Ahmad d. Kyllo
B
When skiing, those participating assume the risk of poorly marked trails.
False
Which act makes it a crime to willfully infringe copyrighted materials via electronic means that worth more than $1,000? a. The Digital Millennium Copyright Act b. The No Electronic Theft Act c. The Economic Espionage Act d. There is no criminal statute for electronic infringement; it is a civil matter only.
B
Which is not covered under the Computer Access Device and Computer Fraud and Abuse Act (CADCFA)? a. unauthorized use of federal computers b. typewriters c. use in excess of authority by a federal employee d. consumer financial records e. All of the above are covered.
B
Which is/are the most common basis for RICO violations? a. embezzlement, narcotics, pornography b. mail fraud, wire fraud and securities fraud c. interstate transportation of stolen goods and gambling d. none of the above
B
Which of the following constitutes a defamatory statement (assuming the statements are untrue)? a. "I don't think you'll be happy with their work." b. "He was dismissed for embezzlement from his last job." c. "I don't care for him at all." d. "All people from Kentucky are stupid."
B
Which of the following defenses to negligence serves as a complete bar to recovery? a. comparative negligence b. contributory negligence c. both a and b d. none of the above
B
Which of the following would mitigate an officer's or corporation's sentence under the corporate sentencing guidelines? a. officer had no direct knowledge; he/she was only the supervising manager b. the company had an ethics training program c. subordinates failed to follow orders d. subordinates were demoted for questioning decisions
B
With reference to #s 33 and 34, suppose that Radical Board's manager simply verifies employment for the camp director. During Keller's first month at the camp, he is able to gain access to the girls at night and sexually assaults 3 of them. The girls' parents have brought suit against the camp as well as Radical Boards. The camp: a. is not liable for the criminal conduct of employees that was not authorized. b. might be liable for negligent hiring. c. has no liability for conduct of employees after hours. d. both a and d e. none of the above
B
"Taking the Fifth" means: a. refusing to allow a search of your office. b. refusing to turn over corporate documents. c. refusing to testify to prevent self-incrimination. d. demanding a search warrant.
C
A tort with very few or no defenses is a _____ tort. a. private b. one-sided c. strict liability d. policy or procedural
C
Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense that he did not know what his officers were doing. a. Ebbers' defense is a valid one because there is no intent. b. Ebbers' defense is a valid one because there is no actus reus. c. Ebbers can be held liable for the actions of employees. d. both a and b
C
If a defendant in a defamation suit holds a qualified privilege: a. the defendant has a complete defense to the suit. b. the defendant cannot be sued if he/she retracts the statement. c. the plaintiff will be required to prove additional elements to recover. d. the defendant enjoys higher protection than the absolute privilege.
C
In torts, kicking another person would be considered: a. negligence. b. strict liability. c. an intentional tort. d. allowable.
C
Internet credit card fraud is covered under which of these acts? a. EEA b. DMCA c. EFTA d. CFAA
C
Proximate cause: a. is the same as causation. b. need not be proved in every negligence case. c. was established in the Palsgraf case. d. is no longer an element of negligence.
C
Punching someone in the face is a: a. tort. b. crime. c. tort and a crime. d. either a tort or a crime, and the victim must select which to pursue.
C
RICO applies to: a. only interstate businesses. b. officers but not directors. c. buyers of businesses. d. all criminal activity. e. none of the above
C
Some communications and work product from those communications, for example between a lawyer and a client, are not allowed (generally) to be divulged. This is known as a: a. protection. b. sacrosanct communication. c. privilege. d. policy.
C
The FBI has developed new technology that enables it to listen to conversations in homes from vans parked in the street outside the homes. While listening to conversations in one neighborhood, the FBI uncovers a meth lab. Agents move in and arrest those in the home without a warrant. Under the Kyllo case: a. the FBI is not required to have a warrant because the information was uncovered without invading the house. b. the FBI is not required to have a warrant because the information was uncovered from outside the private property of the individuals involved. c. the FBI is required to have a warrant in order to listen to the conversations. d. the FBI needs a warrant to listen only if it is going to arrest someone. e. none of the above
C
The failure to give the Miranda warnings: a. is a problem only if the defendant is in jail. b. will result in a dismissal of all charges. c. is a problem only if the defendant is in custody. d. none of the above
C
The key to personal liability for business crimes is: a. your job title. b. corporate board membership. c. personal knowledge of wrongdoing. d. a gray area that is too uncertain to be prosecuted at this time.
C
The purpose of an omnibus hearing is to: a. issue an indictment. b. issue an information. c. hear evidentiary challenges. d. have the defendant enter a plea.
C
Under Sarbanes-Oxley, auditors must retain their work papers: a. for one year. b. for three years. c. for five years. d. until they no longer represent a client.
C
What is the distinction between theft and embezzlement? a. the mens rea is different b. the amount taken c. the entrustment of the property d. They are the same crime.
C
Which is the new crime created by Sarbanes-Oxley? a. mail fraud b. obstruction of justice c. certification of false financial statements d. both a and b
C
Which of the following does not enjoy an absolute privilege to charges of defamation? a. members of Congress while speaking on the floor b. witnesses in a court hearing c. newspaper reporting witness testimony from a trial d. All of the above carry absolute privileges.
C
Which of the following is not an element of criminal fraud? a. a false material statement b. reliance by the buyer c. a mistake by the seller or the intent to mislead d. All of the above are elements.
C
Which of the following is not an element of negligence? a. duty b. breach of duty c. reckless disregard d. causation
C
Which of the following is not an exception to the Fourth Amendment search warrant requirement? a. a search of a burning building b. a search of an area in plain view c. an inspection of a factory for safety violations d. All of the above are exceptions to the warrant requirement.
C
Which of the following statements best describes the property protection given a singer's voice? a. No protection is given since it is intangible. b. No protection is given because many people legitimately sound like famous singers. c. The voice is given the same protection as the face or likeness. d. none of the above
C
Which of the following statements would qualify for a defamation action (assuming the statement is false)? a. "All corporate types are selfish." b. "Accountants will sign off on anything." c. "Jones pled guilty to a violation of campaign contribution laws." d. All of the above qualify for a defamation action.
C
Which of the following would not be classified as libel? a. a newspaper article with untrue statements about a politician b. a letter with untrue statements about the school principal sent to only one person c. a billboard advertisement that has derogatory, but true statements about a local business d. an anti-war speech at a Veteran's Day parade
C
Which of these would not be considered as damages for defamation? a. Lost business b. Harmed reputation c. Hurt feelings d. Decreased business
C
With reference to #s 33, 34, and 35, Radical Boards: a. has no liability to the girls or their parents. b. enjoys an employer privilege and immunity against such litigation. c. might be held liable for the negligent failure to disclose Keller's history. d. has no liability for the subsequent acts of terminated employees. e. none of the above
C
Because of the rise in business crimes, what job has been referred to as "the most secure job in America"? a. Chairman of Board b. President of a company c. Lawyer d. Forensic accountant
D
Which of the following is a violation of the Economic Espionage Act? a. Downloading your employer's website program to take to your new job. b. Sketching your employer's new trademark to register first. c. Photographing customer lists of a competitor. d. All of the above are EEA violations.
D
Dennis Kozlowski was the former CEO of Tyco who was charged with larceny, otherwise known as embezzlement. During his trial, Mr. Kozlowski offered testimony that all of his loans from the company that were not repaid were authorized loans that had been forgiven by the board of directors. The testimony about the board's approval: a. shows a lack of mens rea on Kozlowski's part. b. shows he did not have the actus reus of taking something that did not belong to him. c. is irrelevant because the money belonged to the corporation. d. both a and b
D
Keller has applied for a position at a summer camp for girls, ages 14-18. The camp director had called Radical Board's manager and asked for a reference on Keller. a. Radical Board has no liability if it simply verifies Keller's employment there. b. Radical Board has liability for its failure to prosecute Keller. c. Radical Board has no liability for the actions of employees beyond their job description. d. Radical Board enjoys a privilege against defamation if it discloses the peep hole story. e. none of the above
D
Mens rea is: a. the actual criminal act. b. not required for proof of a crime. c. only required for common-law crimes. d. none of the above
D
Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and sees a statue that he knows is a rare art work that was stolen the night before from a building downtown. Officer Muldoon: a. cannot use the sighting as a basis for a warrant. b. cannot enter the premises to recover the statute. c. is not permitted to look inside the garage from the street even when the door is open. d. none of the above
D
Penalties for corporate officers under Sarbanes-Oxley include: a. 5-20 years for mail and wire fraud. b. 1-10 years for violation of fiduciary duties. c. a maximum penalty of $5,000. d. both a and b
D
Public figures: a. can never have an action in defamation. b. lose their defamation action rights if the remark or information is part of a true story. c. can seek a retraction, but can never recover damages for defamation. d. must establish malice in order to recover damages for defamation.
D
Racketeering acts under RICO include: a. gambling. b. bribery. c. extortion. d. all of the above
D
The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. The owner of the Saguaro Grill called the newspaper and complained because the newspaper was rehashing an incident from nearly 10 years ago that damaged its reputation. The Arizona Daily Desert View: a. is liable to the Saguaro Grill for libel. b. is liable to the Saguaro Grill for defamation. c. is liable to the Saguaro Grill for invasion of privacy. d. none of the above
D
The Fifth Amendment protections: a. apply to corporations. b. can be used by officers of a corporation to prevent disclosure of corporate records. c. can be used by officers of a corporation to prevent disclosure of corporate records that incriminate them. d. none of the above
D
The doctrine that states that an executive cannot knowingly try to avoid learning about actions of those within the company is known as: a. the Ebbers evasion. b. Enron avoidance. c. the Fastow facade. d. conscious avoidance.
D
The penalty for document destruction under Sarbanes-Oxley is: a. five years. b. ten years. c. fifteen years. d. twenty years.
D
The tort of intentional infliction of emotional distress: a. requires proof of some physical harm before there can be recovery. b. is the same as the tort of false imprisonment. c. is a property tort. d. requires proof of conduct that exceeds all bounds of decency.
D
Driving with brakes in need of replacement is not a breach of duty.
False
Which of the following is not a breach of duty for purposes of establishing negligence? a. driving with defective brakes b. driving without one's glasses as required on your license c. driving while intoxicated d. All of the above are breaches of duty.
D
Which of the following is not an element of the crime of embezzlement? a. intent to take property b. taking property permanently c. no authorization to take the property d. All of the above are elements of embezzlement.
D
Which of the following is not an intentional tort? a. battery b. false imprisonment c. invasion of privacy d. negligence
D
Which of the following is prohibited under HIPAA? a. Patients' right to restrict disclosure and discussion of a hospital stay. b. A computer screen in a doctor's office turned toward the waiting room. c. Calling a patient at work who has requested no calls there. d. all of the above
D
Which of the following laws require businesses to report cash transactions involving $10,000 or more? a. Bank Secrecy Act b. USA Patriot Act c. Money Laundering Control Act d. all of the above
D
Which of the following will reduce a corporation's sentence under the U.S. Sentencing Guidelines? a. having a code of ethics b. having ethics training c. having ethics hotline d. All of these can reduce a corporation's sentence.
D
Which of the following would be a federal crime? a. copying FDIC data without authorization b. changing figures on military invoices without authorization c. placing a virus on a federal computer system d. All of the above are federal crimes.
D
Which of the following would be the crime of obstruction of justice? a. making a false entry b. certification of financial statements c. destroying e-mails d. both a and c
D
Which of the following is not a computer crime? a. unauthorized use of computer equipment b. alteration or destruction of computer files c. entering fraudulent data d. using computers to convert data e. All of the above are computer crimes.
E
"Car dealers are crooked" is an example of actionable defamation.
False
"Negligence in the air" is the standard of liability the Palsgraf case established.
False
A corporation cannot be indicted for criminal charges.
False
A grand jury is comprised of judges.
False
A grand jury issues an information.
False
A landowner who sets traps on his property to injure or kill anyone entering his property does not violate any landowner duty.
False
A newspaper running a picture of Julia Roberts' twins has invaded her privacy.
False
A preliminary hearing is the same proceeding as an arraignment.
False
A preliminary hearing requires that the defendant take the stand.
False
A radio broadcast would be considered slander because it is spoken.
False
A tort is a private wrong carrying criminal penalties.
False
A virus is not a trespass under the Federal Computer Fraud and Abuse Act.
False
Absolute privilege is a federal protection while qualified privilege is a state protection.
False
All 50 states have passed cyberbullying statutes that make taunting or hate crimes a felony when using the Internet.
False
An employee who is following orders cannot be held liable for any criminal charges that result from that conduct.
False
Bribery is an ethical violation, but is not a crime.
False
Businesses are never liable for criminal activity on their premises.
False
Commercial bribery is only criminal for the recipient.
False
Comparative negligence, if established, is a complete defense to negligence.
False
Conscious avoidance is a valid defense.
False
Contract interference is remedied by a suit for breach of contract.
False
Corporate integrity agreements are treated as an admission of guilt.
False
Corporate officers are not liable for acts delegated to subordinates.
False
Crimes and torts are mutually exclusive: whichever is sought, the other is prohibited.
False
Criminal fraud is the same as contract fraud.
False
Defamation cannot occur online because there is no evidence that someone heard or understood the statements.
False
Directors are liable for a crime if the corporation is found guilty of the crime.
False
Employee theft is usually a one-time event because the employee is usually too afraid of getting caught to steal more than once.
False
Giving an unfavorable review of a product in a magazine is called product disparagement, a type of defamation.
False
Invasion of privacy is a tort of negligence.
False
Malice is a required element in all defamation cases.
False
Mens rea is not a required element of a crime.
False
Mens rea is the conduct required for a crime.
False
Negligence is available as a tort remedy only when the breach of duty is a statutory violation.
False
Newspapers have an absolute privilege with respect to defamation suits.
False
Non-public figures need not prove publication in their suits for defamation.
False
Only libel requires proof of publication.
False
Plea bargaining is done only before the arraignment.
False
Posting false information in a chat room is not sufficient to establish defamation.
False
Probable cause is required only for warrantless searches.
False
Proximate cause is the same thing as causation.
False
Proximate cause need not be established in negligence cases.
False
RICO applies only to corporations.
False
Servers are always required to reveal the identity of their customers and users.
False
Some crimes do not carry a mens rea requirement.
False
Some damages other than emotional damages must be established for the tort of intentional infliction of emotional distress.
False
Testimony in a court room is not privileged for purposes of defamation actions.
False
The Counterfeit Access Device and Computer Fraud and Abuse Act applies only to federal employees.
False
The Fourth Amendment is the Miranda warning amendment.
False
The Fourth Amendment privacy protections do not apply to business records.
False
The Health Insurance Portability and Accountability Act only applies to the collection, use, and distribution of medical information by physicians..
False
The Palsgraf case expanded the notion of causation.
False
The Sixth Amendment is designed to ensure a speedy trial.
False
The Supreme Court recently ruled that in cases with substantial compensatory damages, punitive damages that do not exceed a 3:1 ratio are acceptable.
False
The White-Collar Criminal Penalty Act of 2002 is known as the King Pin Act.
False
The disclosure of private but true facts is not an invasion of privacy.
False
The omnibus hearing is held before the preliminary hearing.
False
The reasonable and prudent person standard is not used for establishing contributory negligence.
False
The tort of contract interference does not require proof of intent to interfere with the contract.
False
The tort of false imprisonment requires proof of some actual injury.
False
To establish the tort of false imprisonment, there must have been some physical harm.
False
Tort reform acts are quickly erasing the differences among states in tort recovery practices.
False
Under CADCFA, access to institutional financial information is not a violation.
False
"Know Thy Customer" is a training program for employees on preventing money laundering.
True
"Taking the Fifth" refers to the Fifth Amendment protection against self-incrimination.
True
A breach of duty can still be established for negligence cases even when the defendant has complied with the law.
True