Crime & Delinquency Quiz 12
________ is the use of material, nonpublic financial information to obtain an unfair advantage in trading securities.
Insider trading
________ crime is a criminal act committed by one or more employees of a corporation that is attributed to the corporation itself.
Corporate
Business opportunity fraud is not a type of consumer fraud.
F
Churning is the use of material, nonpublic financial information to obtain an unfair advantage in trading securities.
F
The world's legal systems include many highly effective laws and mechanisms to curb destruction of the environment.
F
Which of the following statements is true about switch-and-bait advertising?
It involves offering a consumer an inferior product at a higher price as a substitute for a product that is out of stock.
Which of the following statements is true about insider-related fraud?
It involves the use and misuse of one's position for pecuniary gain or privilege.
Which of the following statements is true about the Environmental Protection Agency (EPA)?
It monitors plant discharges all over the United States.
An important step to curb government contract fraud was taken with the passage of the ________, creating a separate offense of government contract fraud in excess of $1 million.
Major Fraud Act
The decision in what 1909 case caused courts to review a wide variety of criminal cases against corporations?
New York Central Railroad
________ crimes are crimes committed by individuals for themselves in the course of rendering a service.
Occupational
The ________, passed by Congress in 1890, authorized the prosecution of corporations engaged in monopolistic practices.
Sherman Antitrust Act
Embezzlement is the conversion of property or money with which one is entrusted or for which one has a fiduciary responsibility.
T
The Sherman Antitrust Act, passed by Congress in 1890, authorized the prosecution of corporations engaged in monopolistic practices.
T
Which of the following statements is true about white-collar crimes?
They can be committed by a corporation as well as by an individual.
Any scam designed to take advantage of loopholes in the bankruptcy laws is known as
bankruptcy fraud.
Operations run by stock manipulators who, through deception and misleading sales techniques, seduce unsuspecting and uninformed individuals into buying stocks in obscure and often poorly financed corporations are referred to as
boiler rooms.
The practice of trading a client's shares of stock frequently in order to generate large commissions is known as
churning
In the context of corporate culpability, when an organization's personality encourages its agents to commit criminal acts, there is liability under a theory of ________.
corporate ethos
An artificial person created by state charter is known as a
corporation
Congressional sentencing guidelines significantly increased sanctions for corporate crime but also allowed companies large reductions in fines where there was evidence of
organizational due diligence.
In the context of corporate culpability, which of the following models assumes that a corporation is to blame where practices and procedures are inadequate to prevent the commission of a crime?
proactive corporate fault
Which of the following is not one of the four common bankruptcy scams?
the corporate pirate scam
Some of the problems recognized by governments in fighting corporate crime include which of the following?
the lack of disincentives for illegal acts
Which of the following scams involves a profitable corporation that is well positioned in the market but is forced into bankruptcy after new owners have bilked the corporation of all of its money and assets?
the successful-business scam