White Collar Crime: Chapter Quizzes

CHAPTER 1 QUIZ

CHAPTER 1 QUIZ

CHAPTER 2 QUIZ

CHAPTER 2 QUIZ

Based on the 1907 book Sin and Society, which of the following refers to a pillar of society/paragon of virtue who in reality was interested only in personal gain using any means?

Criminaloid

Atavists enjoys a public image as pillars of the community and paragons of virtue.

False

American Family is half-owned by which media giant?

Time Warner

American tend to view white-collar crime as a problem, but not a particularly severe one.

True

Sutherland's cross-sectional studies indicate that white-collar crime is relatively common among large corporations.

True

Which company holds the all-time record for the most suits filed against an employer by the Equal Employment Opportunity Commission?

Walmart

Barry Minkow regarded money generated from stock sales as:

a great source of revenue that did not have to be paid back.

Microsoft was prosecuted for engaging in monopolistic practices for providing a free internet browser with its operating system. This practice is known as bundling. Why was free bad?

after competition was eliminated, there was no restraint on pricing

In 1999, Susan Collins described the predatory practices of sweepstakes companies as "increasingly deceptive and increasingly aggressive." She made these remarks in what setting?

as chairman of a Senate committee

The number one consumer complaint concerning fraud involves:

auto repair

Monopolistic activities were criminalized in the Sherman Antitrust Act of 1890. Reasons for penalizing monopolistic behavior include all of the following EXCEPT:

benefits to big business

When governments are the target of price-fixing by vendors providing goods and services, it is called:

bid-rigging

The term "caveat emptor" refers to which of the following?

buyers should be aware of offers that sound too good to be true

The three major categories of advertisements include all of the following EXCEPT: (celebrity, informative, puffing, deceptive)

celebrity

Telemarketers target all of the following groups except:

college students living away from home for the first time

What message does it send to the public when influential business executives, powerful politicians, and respected members of the professions are seen flaunting the system with little or no punishment?

crime pays

In his pioneering 1949 study, Sutherland used data relating to many industries from many different sources. This is referred to as ________ data.

cross-sectional

Which of the following describes a theory that forces social scientists to reconsider accepted theories?

debunking

Which is an especially alarming characteristic of white-collar crime that, ironically, is also an explanation of low public interest in white-collar crime?

delay in harm

Some of the worst con artists practice their craft based on meteorological events. These are known as ________ con artists.

disaster

Regarding education, what was one of the most significant "hidden" factors between 1995 and 2010?

Involvement of Wall Street in the for-profit education industry

The financial cost of street crime is what fraction of the cost of white-collar crime?

Less than 1/10

The front, the drive, and the close are all part of the telephone swindle. The drive includes:

employ slogans and statistics

American Family employed Ed McMahon and Johnny Carson as sweepstake representatives.

false

Barry Minkow regarded money generated from stock sales as money he could use to invest in other companies.

false

Consumer fraud entails the use of deceit, lies, or misrepresentations to entice customers to buy goods or services.

false

Consumers have not been victimized by bogus labels misrepresenting Levi, Jordache, and Guess jeans and couturiers, Gucci, Cartier, and Ralph Lauren.

false

Crimes against consumers do not carry a heavy social cost.

false

In January 2017, the new secretary for education hired a special assistant, Robert S. Eitel, a lawyer for Bridgepoint Education Service, who was not affiliated with any for-profit colleges.

false

In New York City, taxi drivers were allowed to charge a higher rate per mile for trips that leave the city's five boroughs without informing the customers.

false

Loss of trust when the privileged wealthy few are punished less severely than others is referred to as the opportunity cost.

false

One of the fastest growing market segments in the United States is in the area of video games.

false

Ponzi schemes are occurring less now than they ever have before.

false

The 1980s was dubbed the "betrayal decade."

false

The United States is one of the few countries in the world that does not permit advertisers to sell products to children via television.

false

The classic telephone swindle consists of the front, the drive, and the walk.

false

The collapse of the home mortgage market has led to very few scams.

false

The pricing practices of the American pharmaceutical industry do not come under particular scrutiny.

false

The term "white-collar crime" is not a social science construct that has transcended its academic roots and entered the public lexicon.

false

Traders at the First Equity were instrumental in helping people who needed support and aid after September 11, 2001.

false

Two frequent targets of major antitrust litigation are the oil industry and the transportation industry

false

Who conspired to conceal $105 million in missing funds after September 11, 2001?

first equity

Which of these corporate giants were not involved in a research program involving perfectly functioning car batteries?

ford

American Family Publishers used all of the following techniques to trick entrants except:

free merchandise

The 1980s saw a dramatic increase in the incidence of white-collar crime. One of the reasons for the increase may have been:

government deregulation

The term "laissez-faire" refers to which of the following?

governments should not interfere with the free markets

What is the main reason that government agencies have a difficult time gathering data specific to white-collar crime?

identifying the criminals

The United States is one of the few countries that permit television advertising for products that target children. Most countries consider this to be:

immoral

Items that look like brand name merchandise but in fact are counterfeit are:

knockoffs

A criticism of the caveat emptor doctrine is:

latent defects

The term "white-collar" is based on:

occupations of the perpetrator

A Ponzi scheme attempts to cheat people by:

paying original investors with money from new investors

Magazine sweepstakes typically rely on which two ploys to entice people to buy magazines and enter contests?

personal guarantees and personalized letters

What two types of fraud did individuals identify as most prevalent in victimization surveys?

prize scams and auto repairs

Which is another term for a Ponzi scheme?

pyramid

Industry-specific studies showed that although white-collar crime can occur in a variety of settings, it is concentrated in certain specific industries, such as:

securities, defense contractors, and savings and loans

5 to 10 percent of all minutes logged on the telephone time scams are concentrated in what area?

sex lines

A boiler room might be characterized by:

telephones

The 1990s could be dubbed as:

the "betrayal decade."

White-collar crime of the 1990s included all of the following EXCEPT:

the U.S. President being found guilty of perjury

Transamerica Financial Services and Mellon Bank and also Resources Financial and Fleet Financial bank worked together to offer home loans to low-income people because:

the banks wanted to conceal involvement in this lending practice.

The Keystone and Oakwood bank frauds are particularly appalling because of:

the identity of the victims

The public does not regard white-collar crime as a severe problem. Reasons for this include all of the following EXCEPT:

the low cost of white-collar crime

Schemes that offer fee-based credit cards, loan applications saying "guaranteed approval," home equity loans, and trade schools for low-paying jobs target what group of people?

the poor

The "toner-phoner" salesman coerced the school district office manager to pay fraudulent invoices by:

threatening to accuse her of accepting gifts and then paying for goods not received.

Pharmaceutical companies have been criticized by Congress for excessive and unreasonable profits. Drug company profits are more than ________ times the average profit of Fortune 500 companies.

three

"Economic adulteration," involves the use of cheaper, inferior ingredients to cheat customers and undercut competition.

true

A theory that forces social scientists to reconsider accepted theories is a debunking theory.

true

According to victimization surveys, approximately half of all respondents reported that they had been targets of an attempted or successful fraud.

true

Auto repairs make up the largest category of complaints received by Congressional panels.

true

Charles Ponzi was one of the most influential white-collar criminals in American history.

true

Computer-generated personalized letters are a standard marketing ploy in the sweepstakes industry.

true

Edwin Sutherland coined the term "white-collar crime."

true

In the 1990s, three separate trade groups were victimized by trusted insiders.

true

Live "sex lines" account for 5 to 10% of all "900" minutes logged.

true

Many legitimate companies use 900 numbers to serve customers.

true

Many scams involving junk e-mail are for pyramid schemes.

true

One of the best ways to understand the extent of consumer fraud is through surveys of victims.

true

Personal frauds cost American tax payers an estimated $40 billion annually.

true

Price-gouging occurs when entities take advantage of laws, monopolies, and real or contrived shortages to demand excessive payments.

true

Regarding education, one of the most signification "hidden" factors between 1995 and 2010 was the notable increased involvement of Wall Street in the for-profit educational industry.

true

The Rudy Kurniawan wine fraud case is one colorful example of the pervasiveness of white-collar crime.

true

The consequences of corporate accounting fraud can be extremely expensive.

true

The myth of the free market and caveat emptor work in tandem to make consumers vulnerable to unscrupulous vendors.

true

The notorious gangsters who captured the public's attention during the 1930s often became unlikely folk heroes.

true

Victimization surveys have been used to gain more information about the prevalence of street crime for many years.

true

According the U.S. Postal Service ________ of scams using spam mailings on the Internet are really Ponzi schemes.

80%

Which telemarketing scam relies on use of a certain area code to make money just from phone calls?

900 calls

Which year brought the close of 500 different banks in the United States?

1933

When was the term "white-collar crime" was first used?

1939

In what decade did the Justice Department undertake some vigorous prosecutions of white-collar offenders?

1970s

Who wrote a book which expressed his dismay about corrupt business practices?

E.A. Ross

American Family Publishers used which two individuals as front men for its sweepstakes and promotions in the 1990s?

Ed McMahon and Dick Clark

Who coined the term "white-collar crime," which is a social science construct that has transcended its academic roots and entered the public lexicon?

Edwin Sutherland

Which federal agency regulates advertising?

FTC

Who took advantage of a market that operated outside of formal rules and regulations by selling counterfeit bottles of wines alongside genuine bottles of rare and vintage wines?

Rudy Kurniawan

Which major Wall Street investment firm "rigged" the U.S. Treasury bond market and received little backlash from the media and other outlets?

Salomon Brothers

Which of the following activities could be described as "bait and switch"?

Substituting a more expensive item with a product of lesser quality