Business Law Test 2 Ch. 12
What are the six constitutional rights provided in the sixth amendment?
-right to a speedy and public trial -trial by jury -to be informed of charge against you -to subpoena witnesses in your favor -to have the assistance of an attorney
if a person acts under the direction of someone accused of criminal activities, this person might be held responsible for what?
Aiding and abetting (in the commission of the crime)
What does RICO stand for?
Racketeer Influenced and Corrupt Organizations act
Adam was hired by a defense contractor for a position that required a clearance for classified material. he failed to disclose a criminal conviction on a department of defense personnel security questionnaire, but admitted that he knew there was false information on the form which he signed. a) did adam willfully violate any law? b)if adam didnt actually realize that the form would be submitted to a federal agency is that a defense?
a) adam attempts to squeeze between nondisclosure and full disclosure. because the questionaire is not answered with truthful information, adam could be charged with and convicted of making false statement to the department of defense (false statement to a federal agency) b) no, having knowledge that a false document is going to be submitted to a federal agency is not a requirement of this crime
Someone who helps a criminal before or after a crime is committed is known as what?
an accessory
What specific people are liable for cyber crime?
any person who intentionally accesses a computer without authorization or exceeds authorized access to obtain classified, restricted or protected data, or attempts to do so, is subject to criminal prosecution
What are three prohibited activities would make someone liable for racketeering?
anyone who uses or invests income from prohibited activities to acquire interest or to operate an enterprise. acquires or maintains an interest in or control of an enterprise. conducts or participates in the conduct of an enterprise while being employed or associated with it.
what is larceny involving breaking into a building with intent to commit a felony?
burglary
Why is it important for business persons to have an understanding of the basic principles of criminal law and white collar crime?
businesspeople may be victims of a variety of crimes. equally possible, many business activites may lead to criminal behavior ifthose engaged in such activities are not well aware of the consequences of these actions.
What is the diferrence between felonies and misdemeanors ?
felonies- are punishable by fine or imprisonment for a period of one year or more, commenced by grand jury indictment misdemeanors- are punishable by a fine or fail sentence of less than one year, commenced by government charged information.
Who are the parties to a criminal case?
in criminal cases, a representative of the United States (U.S. attorney) or of state (states attorney or district attorney) prosecutes a charge against an individual or organization, as a defendant
what is the unlawful taking of personal property with the intent it deprive the rightful owner of it permanently?
larceny
If you are taken in to custody you are read rights which are known as what?
miranda rights
Do police officers need a search warrant to search a person for weapons when they are making an arrest?
no
does the fourth ammendmant apply to foreign citizens?
no
What is the concept behind double jeopardy?
no person shall be subject for the same offense to be twice put in jeopardy of life or limb, courts do not allow individuals to be tried twice by the same governmental entity for the same crime.
police are required to obtain a search warrant to prevent what?
unreasonable search and seizures
Accessories after the fact are subject to what type of punishment?
usually subject to specific penalties for their actions as determined by the laws of various states
What terms are used to describe criminal intent?
willfully or knowingly. if an act is done willfully it is committed voluntarily and purposefully with the specific intent to do something, it is not willfully if there is good faith misunderstanding
Joe, a purchasing agent of ABC company, entered into a contract to purchase software on behalf of ABC from a software company represented by harry. the contract stated a price of 10k but the actual cost was 8k. Joe and harry split the 2k? did they commit a crime?
yes both joe and harry are stealing from abc company, larceny
mary lost her billfold, which contained credit cards and an atm access card. she had written her pin number on a piece of paper, which was also in the billfold. Al found the billfold. he used the credit cards and atm card to obtain over 2500 in goods, services and cash. is al guilty of federal offense?
yes, al used a means of interstate communication to steal 2500 dollars from marys account
is it a federal crime to willfully make a false statement to a federally insured financial institution (bank)?
yes, the purpose is to protect banks and ensure accuracy of financial information
What is the definition of racketeering?
"any act or threat involving" specified state law crimes, any "act" indictable under various specified federal statuses and certain federal "offenses"
burgers junkyard business consists of dismantling automobiles and selling their parts. a new york statute authorized warrantless inspections of automobile junkyards. police officers entered his junkyard, conducted an inspection, and discovered stolen vehicles and parts. Burger, who was charged with possession of stolen propoery moved to suppress the evidence obtained asa result of inspection. He contends that the administrative inspection statute is unconstitutional when it authorizes warrantless searches is he correct? Why or why not?
no, this warrantless search and seizure of stolen parts was not unconstitutional because burger did not have an expectation of privacy and freedom from these administrative searches
Does the double jeopardy cause apply to civil penalties? why or why not?
no. the protection against double jeopardy is limited to criminal activities. civil sanctions normally are not considered so severe as to be criminal.
a person can plead guilty, not guilty and what else?
nolo contendere or "no contest"- allows sentencing as if defendant had pleaded guilty , allows for defendants to avoid cost of trial.
How many members does a grand jury normally consist of and what are the functions of a grand jury?
normally consists of 23 members, at least 16 persons have to be present to hear evidence and vote on cases, they have to determine probable cause and the majority has to agree to warrant accused standing to trial, must also subpoena business records
when an individual commits an act with intent to obstruct the legislative process or a judicial process is known as what>?
obstruction of justice
what is larceny by violence or threat (such as use with a gun)?
robbery
a prosecutor must establish a presence of plan or program designed to take from a person the tangible right of honest services?
scheme to defraud
Describe three trends in criminal law that impact business organizations and businesspeople?
the application of criminal law has been a strong response to corporate scandals in the early 21st century. businesses and businesspeople have been subjected to increased media coverage including public displays of arrests and court appearances. the use of plea bargaining with lower level businesspeople to gain information to use against higher level executives has become commonplace news items. large sums for bail have been publicized . also the governments attempt to enforce harsh sentences, including seizure of assets are frequent occurrences.
Why is cyber crime difficult to detect and to prosecute successfully?
the complexity of internet transmissions and the "invisibility" of the transmitter contribute to cyber crimes being difficult to prosecute
what is the fifth amendment?
the privelige against self incrimination. only individuals may plead the fifth, not businesses besides sole proprietorships
Roberts was the president and shareholder of a corporation. a federal grand jury issued a subpoena to him in his capacity as president. the subpoena required roberts to produce corporate records. roberts moves to quash the subpoena on fifth amendment grounds. Must roberts deliver the records? why or why not? could roberts be required to testify about the documents? why or why not? If roberts takes steps to dissolve the corporation, can he then avoid the subpoena? why or why not?
the records are not privileged, but their production is. an individual may not assert the fifth amendment privilage on behalf behalf of a corporation, partnership or other collective entity. a subpoena that demands production of documents does not compel oral testimony; nor would it ordinarilly compel the taxpayer to restate, repeat or affirm the truth of the contents of the documents sought. the contents are not privileged. although the contents of a document may not be privileged, the act of producing the document may be. a government subpoena compels the holder of th document to perform an act that may have testimonial aspects and an incriminating effect. compliance with the subpoena tacitly concedes the existence of the papers demanded and their possession or control by the tax payer
James was indicted by a federal grand jury. during the trial jurys deliberation one juror said, " i think james is guilty or else the grand jury would not have sent us the case." another juror objected the statement and said " the action of the grand jury is irrelevant in our determination of guilt and innocence." Which juror is more accurate about the role of grand juries in our criminal justice system.
the second juror is more accurate. the grand jury provides a vehicle for investigating possible criminal activity, and its conclusion is simply whether or not there is sufficient evidence to charge the defendant with a crime.
The U.S. sentencing guidelines apply a mathematical formula to sentencing. How do the guidelines operate?
the sentencing guidelines assign a number to each type of crime and to all attending circumstances including the type of offender involved. the law authorizes judges to depart from the guidelines when they encounter factors not considered by the commission.
what is larceny commonly referred to as?
theft or stealing
Quincy was a successful investment banker specializing in underwirting and merger advice. a federal grand jury was investigating the sales of initial public offerings, and quincy knew that the grand jury had issued subpoenas seeking information about quincys deals. quincy sent an email to colleagues and encouraged them to "clean up" their files. What crimes if any did quincy commit? if a colleague shredded files what crime may have been committed?
these actions, sending the email and destroying the relevant email message, may be actions that obstruct the grand jurys investigation.
Accessories before the crime assist in preparation for the crime and are subject to what type of punishment?
they may be punished the same as the person who committed the crime
Beth was killed when a trench collapsed. an investigation showed that the trench was 27 feet deep and without adequate shoring, in violation of safety standards. Bob, the president of the firm, is charged with negligent homicide. is a finding of guilt possible? Why or why not?
yes. corporate officials have a duty to make sure that safety standards are met. failure to do so may be considered negligent homicide if a worker is killed.
Susan a partner in a CPA firm, prepares a federal income tax return knowing that it contains false information. because the client wants the return prepared in this manner, susan obtains the taxpayers signature on the return and files it with the IRS. Has susan aided and abetted in the commission of a crime? why?
yes. susan was an accomplice or an accessory before the fact to susan filing a false return with the IRS
Allen, mary, and jon agreed to participate in a program to manipulate the values of securites. Allen made several calls to securites brokers in which he delivered false information about a number of companies. before any further actions were taken, mary and johnathon decided to withdraw as active participants in the program. Did mary and jon commit any crime? Why or why not?
yes. the agreement to participate in wrongful activities can constitute the crime of conspiracy. a person does not need to know all of the details. anyone not wishing to be a part of the conspiracy needs to disassociate him or herself from the process immiediately upon discovering the illegal scheme. mary and jon did not withdraw immediately
Don, a promoter of prize fights, formed a corporation. Don was the sole shareholder, sole director, and president of the corporation. Don was charged with a violation of RICO. Is the requirement of both person and enterprise met?
yes. the shareholder and the corporation are viewed, in the law as seperate entities.
your business is in need of additional working capital. you contact your back about a loan. a line of credit of 500k is tentatively approved pending you furnish audited financial statements. you meet with your auditor who is also a personal friend. suppose you ask your auditor to add 250k as an account receivable. in fact, this asset does not exist. the auditor certifies the financial statements with this phantom asset. you mail the audited financial statements to the bank. what crimes have you committed ? what crimes did the auditor commit? what should have been the auditors response to your request?
you have made a false statement to a bank. the auditor is an accessory before the fact. the auditor should have refused to add the account receivable to the financial statement.