Business Law - Ch. 7

Glenn gives Senator Smith $100,000 so that Senator Smith will make sure the federal government buys all its paper clips from Glenn's company. Glenn has

Committed the crime of bribery

Morris owns a bicycle store. He often leaves Daniel in charge of the store. One Saturday evening, after Daniel leaves the store, Morris discovers that he is missing $900 from the register. If Daniel took the cash, he could be found guilty of the crime of

Embezzlement

Gage and his brother Richard have robbed several stores. When they attempt to rob Al's Deli, Al shoots Richard in the foot. Richard is caught and arrested. Gage continues committing crimes, and Richard is offered immunity in return for testifying against his brother. If Richard accepts

His testimony will not be used against him

April owns a diamond ring that she often takes off and places on her desk while she works. She is usually careful to put it back on whenever she leaves her desk. One day she went to lunch and forgot to take the ring. Olivia picked up the ring and did not return it to April. Olivia has probably committed the crime of

Larceny

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. If Phil were to be found to be in violation of the FCPA, what standard of proof would be needed for a criminal conviction?

Proof beyond a reasonable doubt.

Simpsons actions _______ constitute a "scheme" or plan to use communications to defraud the public.

do

If Simpson's actions constitute mail fraud, it is a __________ crime.

federal

Vince relies on his computer skills to have enough money to attend college. He breaks into computer systems to transfer funds to his own accounts. He occasionally gets paid by other students for breaking into the university's computers to alter their grades. Vince is what is commonly referred to as a

hacker

What is Simpson's mens rea- mental state?

intent to overcharge customers to make a profit

Criminal law is

statutory law

What requirement of mail fraud would be missing?

use of the communications

If Simpson is arrested and goes to trial on mail fraud charges, the state will have to prove ______________ that he committed the act with intent in order to get a conviction.

beyond a reasonable doubt

If convicted of mail fraud, what are Simpson's possible criminal punishments?

fines and imprisonment

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. Under the FCPA, like most crimes the prosecutor would have to show

both mens rea and actus reus.

Joseph, a 16-year old honor student calls 911 from a pay phone to report a possible bomb in the town square. He does not have a bomb or any materials to make a bomb, and has no intention of placing one in the town square. He is arrested for making a terrorist threat, and claims that he has not committed a criminal offense. A court will likely

fine Joseph guilty of making a terrorist threat

The two elements of a criminal act are 1. __________ and 2. _____________

1. actus reus 2. mens rea

Evidence of Simpson's intent can be found in 1. _____________ and 2. _________________

1. the payments he made to himself 2. his false identifications

The Department of Justice wants access to the telephone records of a major newspaper. The requirement for a search warrant, an order from a judge authorizing the search of the records, would be required under the

4th Amendment

Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditors, credit reporting agencies, and others. Through these entities, Simpson and the others used routing codes and spoofing services to make long-distance calls appear to be local. They stole other firms' network capacity and diverted payments to themselves. They leased goods and services without paying for them. To hide their association with their corporate entities and with each other, they used false identities, addresses, and credit histories, and issued false bills, invoices, financial statements, and credit references. Did these acts constitute mail and wire fraud?

Case Study

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. Assume that it turns out that Phil was an undercover FBI agent and that it was his idea that Dale violate the FCPA. Dale does do so. What would Dales best defense to criminal liability be?

Entrapment

Rama advertises on the radio that she is selling a cream guaranteed to grow hair. Rama knows that the cream will not do what she claims it will. Rama may be tried

For the federal crime of wire fraud

Gavin runs an illegal gambling operation out of the back of a store that he owns. The store shows increasing profits because Gavin reports the profits of his gambling operation as legitimate store income on his tax returns. Gavin is engaged in

Money laundering

What if Simpson and his friends went door to door, collecting prepayments for their services - would that constitute mail fraud?

No

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. Suppose that a whistleblower in the company alerts the FBI about Phil and Dales plan. The FBI, without a warrant searches the company's offices and finds evidence that Phil and Dale violated the FCPA. Which of the following is true?

The evidence most likely would not be able to be used in a prosecution against Phil and Dale, because of the Fourth Amendment to the Constitution.

Starla was killed when her car struck one of a group of horses that were roaming on the highway. The Sea Horse Ranch owned the horses, which were property of the corporation that owned the ranch. The horses frequently escaped through poorly maintained fences surrounding the ranch. Shipley, the ranch's owner and president of the corporation, had been cited by the police and the humane society for allowing his horses to run free on the highway. The state sought to prosecute both the Sea Horse Ranch and Shipley for involuntary manslaughter. Can the Sea Horse Ranch corporation be held liable for the crime?

Yes, because a corporation can be held liable for the criminal actions of its officers

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. The fact that one could be punished by over a year in prison makes a violation:

a felony.

If Simpson's actions constitute a crime it would be

a white collar crime

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison. If a grand jury were to meet and officially charge Phil with a violation of the FCPA, the official charging of the crime would be called:

an indictment.

Jonas is arrested for the criminal offense of attacking and injuring a neighbor in the neighbor's front yard. After the arrest, he is concerned about potential civil liability. Which of the following should he be concerned about relating to both criminal and civil liability in this case?

assault

Based on his actions and evidence of intent, Simpson ________ commit mail and wire fraud.

did

Justin is the accountant for a trucking company. A driver, Andrew, holds a gun to Justin's head and forces him to steal from the company. Justin falsifies records, obtains cash, and gives it to Andrew. If criminal charges are brought against Justin, he can assert the defense of

duress

Mail fraud requires some sort of communication system. Which one(s)did Simpson use?

telephone

What is Simpson's actus reus- guilty act?

using codes and spoofing services to make long-distance calls appear local