Chapter 6: Criminal Law & Business

Question 1

Actus Reus

Answer 1

Wrongful behavior (Guilty Act)

Question 2

Mens Rea

Answer 2

Wrongful state of mind, such as purpose knowledge recklessness, or negligence. (Guilty Mind)

Question 3

Strict Liability (Liability without Fault)

Answer 3

A legal term that imposes responsibility for damages regardless of the existence of negligence.

Question 4

White-Collar Crime

Answer 4

A variety on non-violent illegal acts against a society that occur most frequently in the business context.

Question 5

Bribery

Answer 5

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.

Question 6

Extortion

Answer 6

The making of threats for the purpose of obtaining money or property

Question 7

Fraud

Answer 7

A variety of means by which an individual intentionally uses some sort of misrepresentation to gain advantage over another person.

Question 8

Embezzlement

Answer 8

The wrongful conversion of another’s property by one who is lawfully in possession of that property.

Question 9

Insider Trading

Answer 9

The illegal buying or selling of a corporation’s stock or other securities by corporate insiders, such as officers and directors, in breach of a fiduciary duty or some other relationship of trust and confidence, while in possession of material, nonpublic information about a security.

Question 10

False Pretense

Answer 10

The illegal obtaining of another’s property by a making materially false representation of an existing fact, with knowledge of the falsity of the representation and with the intent to defraud.

Question 11

Forgery

Answer 11

A criminal falsification by imitating, impersonating, or altering a real document with the intent to deceive.

Question 12

Pretexting

Answer 12

using or causing other to use false pretenses, fraudulent statements, stolen documents, or other misrepresentations including posing as an account holder or employee of a telecom company to obtain phone records of another.

Question 13

Computer Crime

Answer 13

1. Directed at a computer.
2. Using a computer to commit a crime.
3. Involves computers.

Question 14

Cyber Terrorist

Answer 14

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, which may have an impact on millions of citizens if successful.

Question 15

Hacker

Answer 15

A person who illegally accesses or enters another person’s computer to obtain money or steal information.

Question 16

Virus

Answer 16

A computer program that rearranges, damages, or destroys computer data.

Question 17

Strict-Liability Offense

Answer 17

Offense for which no mens rea is required.

Question 18

Vicarious Liability

Answer 18

The liability imposed on a person or party for damages caused by another. Most commonly used in relation to employment, with the employer held vicariously liable for damages caused by its employees.

Question 19

Constitutional Provisions that Safeguard Defendant’s Rights

Answer 19

Amendments
4th: 
-Unreasonable search and seizure 
-Restrictions on Warrants
5th:
-Double Jeopardy
-Right to not self-incriminate
-Right to Due Process
6th:
-Speedy & Public Trial
-Trail by impartial jury of ones peers
-Right to be informed of accusations against oneself
-Right to confront witness
-Right to have a witness
-Right to Counsel
8th:
-Freedom from excessive bail
-Free, from excessive fines
-Free. from cruel & unusual punishment 
14th:
-Extension of right to Due Process in all state matters.
-Extension of most constitutional rights to defendants at stake level.

Question 20

Criminal Procedure: Pretrial

Answer 20

1. Arrest
2. Probable Cause
3. Miranda Rights
4. Booking
5. First Appearance
6. Bail
7. Information
8. Indictment
9. Arraignment
10. Nolo Contendore
11. Petit Jury
12. Plea Bargain

Question 21

Probable Cause

Answer 21

Any essential element and/or standard by which a lawful officer may make a valid arrest.

Question 22

Arraignment

Answer 22

The first appearance in the court by the defendant, at which the defendant is advised of the pending charges, the right to counsel, and the right to trial by jury, and he enters a plea to the charge.

Question 23

Nolo Contendere

Answer 23

A plea in which the defendant does not admit guilt but agrees not to contest charges.

Question 24

Indictment

Answer 24

Finding by the grand jury that there is adequate evidence to charge the defendant and bring him to trial.

Question 25

Petit Jury

Answer 25

A group of 6 or 12 citizens summoned to render a verdict in a trial.

Question 26

Affirmative Defenses to a Crime

Answer 26

1. Infancy
2. Mistake in Fact
3. Intoxication
4. Insanity
5. Duress
6. Entrapment
7. Necessity
8. Justifiable use of Force

Question 27

Criminal Procedure: Trial

Answer 27

1. Bench Trial
2. Burden of Proof
3. Burden of Persuasion

Question 28

Burden of Proof

Answer 28

The duty of the plaintiff or prosecutor to establish a claim or allegation by admissible evidence and to prove that the defendant committed all the essential elements of a crime to the jury or court’s satisfaction beyond any reasonable doubt in order to convict.

Question 29

Burden of Persuasion

Answer 29

The prosecution must persuade the jury beyond a reasonable doubt that the defendant committed a crime.

Question 30

Burden of Evidence

Answer 30

Production of tangible evidence and testimony that prove elements of a crime that the defendant committed.

Question 31

Bench Trial

Answer 31

A trial before a judge, with the judgement decided by the judge rather than the jury.
-Occurs when the defendant has waived his rights to a jury trial.

Question 32

Racketeer Influenced and Corrupt Organizations Act (RICO)

Answer 32

A U.S. law that provides extended penalties for criminal acts performed as part of an ongoing criminal organization.

Question 33

False Claims Act

Answer 33

An act that allows employees to sue employers on behalf of the federal gov’t for fraud against the gov’t. The employee retains a share of the recovery as a reward for their participation.

Question 34

Sarbanes-Oxley Act

Answer 34

• Criminalizes specific non-audit services when provided by a registered accounting firm to an audit client.
• Increases the punishment for a number of white-collar offenses.
• Extends the statutes of limitation regarding the discovery of fraud. (2 yrs from the date of discovery of the fraud, 5 years from the dates of the criminal act)