Business Law - Chapter 6 LearnSmart

_____ is generally the illegal buying or selling of a corporation's stock or other securities by a corporate insider, in breach of a fiduciary duty or some other relationship of trust and confidence, while in possession of material, nonpublic information about the security

Insider trading

When a judge is the fact-finder in a case, the trial is called a(n) _____ trial.

bench

Extortion is also known as ____.

blackmail

Criminal _____ involves an individual intentionally using some sort of misrepresentation to gain an advantage over another person.

fraud

Forgery is a type of _____.

fraud

Actus reus means ___

guilty act

Which of the following is an essential element of mail fraud?

intent to fraud

The FCPA allows the government to prosecute those who _____ foreign officials.

bribe

Which of the following is an accurate statement regarding the responsible corporate officer doctrine?

A corporate executive can be liable even if she or he did not engage in, direct, or even know about a specific criminal violation.

Why is a report of profitability from Dun & Bradstreet a false assurance that an investment opportunity is not fraudulent?

Dun & Bradstreet does not track financial earnings each quarter

_____ is the wrongful conversion of another's property by one who is lawfully in possession of that property

Embezzlement

_____ is the fraudulent making or altering of any writing in a way that changes the legal rights and liabilitites of another

Forgery

Which of the following is an incorrect statement regarding criminal post-trial procedure?

If the petit jury returns a verdict of not guilty, a third party can appeal the acquittal.

Which of the following is an accurate statement regarding the personal liability of a corporate executive for a business crime?

In addition to a corporation having criminal liability, a corporate executive may also be personally liable for a business crime.

The most economically destructive computer crime to date was the creation of the _____virus

Love Bug

A(n) ____ is a fraudulent operation in which the operator, and individual or organization, pays returns to its investors from new capital paid to the operators by new investors rather than from profit earned by the operator

Ponzi scheme

_____is using or causing others to use false pretenses, fraudulent statements, fraudulent or stolen documents, or other misrepresentations to obtain the telephone records of another.

Pretexting

According to the _____, the decision to prosecute at the federal level depends on whether the evidence is sufficient to obtain a conviction, and whether prosecuting the case serves a federal interest.

Principles of Federal Prosecutions

_____ was originally enacted to combat organized crime.

RICO Racketeer Influenced and Corrupt Organization Act

Which of the following is NOT a category of computer crime prohibited by the Computer Fraud and Abuse Act?

Sharing of personal passwords to social media websites with friends and familiy

During the first appearance, if the magistrate determines that probable cause did not exist for the defendant's arrest, what occurs?

The defendant is released.

Which of the following is NOT an option available to the prosecutor and the defendant in a plea bargain agreement?

The prosecutor agrees not to pursue the related civil case if the defendant pleads guilty

_____ liability is imposed on one person for the acts of another

Vicarious

____ crimes are nonviolent illegal acts against society.

White-collar

When does booking occur?

after the defendant's arrest

If the grand jury issues an indictment, the defendant appears in court to answer the indictment in a proceeding called the _____.

arraignment

A law enforcement officer should obtain a(n) _____ warrant before an individual is taken into custody.

arrest

Which of the following is NOT a common way to punish a white-collar criminal?

exile

A petit jury is a(n) _____ jury

fact-finding

Which of the following is NOT an example of a fraudulent crime?

false imprisonment

Strict liability is also known as liability without ______,

fault

A computer crime can be committed by a corporate insider, such as an employee, or by and outsider such as a(n) _____.

hacker

Which of the following is NOT an affirmative defense to crime?

ignorance of the law

If the grand jury agrees that the prosecution's evidence against the defendant is adequate, it issues a(n) _____

indictment

If the grand jury agrees that the prosecution's evidence against the defendant is adequate, it issues a(n) _____.

indictment

With a plea of _____, the defendant does not admit guilt but agrees not to contest the charges>

nolo contendere

Which of the following is NOT a type of computer crime?

one that generates proceeds for an eventual computer purchase

Attorneys in the Computer Crime and intellectual Property Section of the U.S. Department of Justice prosecute_____.

only federal computer crimes

Ordinarily, to obtain an arrest warrant, a law enforcement agent must demonstrate _____.

probable cause

A cyber _____ is a hacker whose intention is the exploitation of a target computer or network to create a serious impact, such as the crippling of a communications network or the sabotage of a business or organization

terroist

The three federal laws that have aided in the fight against business-related crimes include all but which of the following?

the Bush-Cheney Doctrine

What is the principle reason for bail?

to ensure that the defendant will return for trial

The Fourth Amendment to the U.S. Constitution protects against _____.

unreasonable search and seizure

Which of the following is NOT part of the Miranda warnings?

"You have the right to an attorney, but only after law enforcement authorities ha e questioned you."

____ is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust

Bribery

Which of the following is an accurate statement regarding state whistle-blower protection law?

Currently, 47 states have whistle-blower protection laws for either public or private sector employees, or both.

During which decade was the Sarbanes-Oxley Act passed?

2000s

Pursuant to the _____ Act, an employee who reports an employer for fraud against the government retains a share of the recovery as a reward for his or her efforts.

False Claims

____ include serious crimes, such as murder.

Felonies

Which of the following is an accurate statement regarding an affirmative defense?

It contends that even if the defendant committed the alleged physical acts, the defendant should be excused from responsibility for those actions

Which of the following is an accurate statement regarding an information?

It is prepared by the prosecutor and presented to the magistrate.

Which of the following is NOT a state of mind that may be required for the commission of a criminal offense?

conditional

The purpose of ____ law is to punish an offender for causing harm to public health, safety, or morals.

criminal

A ____ issues the arrest warrant.

magistrate

_____ are less serious crimes punishable by fines and/or imprisonment for less than one year

misdemeanors

Commercial bribery includes a bribe in exchange for new information or ____.

payoffs

Which of the following is not a category of crime?

perfunctory crimes

If the defendant pleads not guilty, his case will be heard before a _____ jury.

petit

A _____ is a minor misdemeanor usually punishable by a jail sentence of less than six months or a small fine.

petty offense

A(n) _____ is an agreement in which the prosecutor agrees to reduce charges, drop charges, or recommend a certain sentence if the defendant pleads guilty.

plea bargain

In terms of criminal procedure, the _____ always brings the criminal case.

prosecutor

A major way the National Information Infrastructure Protection Act of 1996 amended the CFAA was the substitution of the term _____ computers for federal interest computers so that the statute now protects any computer attached to the Internet.

protected

The burden of proof in a criminal trial has two elements: ______.

the burden of production of evidence and the burden of persuasion

Which of the following federal administrative agencies investigates and pursues punishment for stock-option backdating?

the Securities and Exchange Commission

To demonstrate bribery of a public official, the government must show all but which of the following elements?

the public official had served in his or her position for three years or longer

With regard to an investment opportunity, which of the following is NOT a commonly recognized "red flag" suggesting possible fraud?

the small company offering the opportunity being unable to qualify for bank financing

The Sarbanes-Oxley Act makes it illegal for registered public accounting firms to provide non-audit services to an audit client. Section 201 of the act specifically names as illegal all but which of the following?

the use GAAP in the preparation of financial statements

What is the purpose of the law against bribery of a public official?

to maintain the integrity of government

Which of the following is an accurate statement regarding the vicarious liability of an employer for the wrongful act of an employee?

An employer can be liable for the wrongful act of an employee if the employer directed, partook in , or authorized the wrongful act.

Suppose Jim goes door-to-door selling vacuum cleaners at an amazing discount. To obtain the discount, customers must pay immediately, and the vacuum cleaner will be delivered in three to five business days. However, Jim possesses no vacuum cleaners and does not plan to deliver any. Jim committed the crime of _____.

false pretense

What is the modern rule regarding whether a corporation can be held criminally responsible?

Currently, corporations can be held criminally accountable for almost any crime.

Under the common law, why could a corporation not be considered a criminal and prosecuted?

because a corporation is not an actual person and does not have a mind