Exam 3: III pt. 1

Question 1

What do regulatory agencies do?

Answer 1

• protect public/harm to people from businesses/corporations

- enforce standards/policies within the industry

Question 2

What are the 3 types of regulations?

Answer 2

1) private agencies
2) formal criminal police agencies
3) governmental regulatory agencies

Question 3

What are the pros of regulatory agencies?

Answer 3

• expert in the field
• proactive/monitoring
• corporations are not motivated to protect consumers.
• research supports regulatory agencies does have an effect.
• reducing information asymmetry.

Question 4

What are the cons of regulatory agencies?

Answer 4

• requires $$
• ineffective/political corruption
• economically inefficient.

Question 5

What are the criticisms of regulatory agencies?

Answer 5

1. ) agency administrators’ ideologies
2. ) appointees may not have expertise needed to monitor that industry.
3. ) unable to recruit superstar employees bc of mediocre salaries
4. ) agencies are understaffed and underfunded
5. ) lack of transparency about agency activities.
6. ) bias towards larger corporations (treated better)

Question 6

What is the difference between “command and control” and “Persuasive Approaches” of regulatory agencies?

Answer 6

command & control: involves use of punitive sanctions just trying to make profit.

cooperative/persuasive: advisory role, assumption that corporations want to comply but don’t know how.

Question 7

What are the 4 different types of regulatory policing styles?

Answer 7

1) service
2) watchman
3) legalistic
4) free agent

Question 8

What is the service regulatory policing style?

Answer 8

where agencies serve the community through the provision of various services
serve the government not the public

Question 9

What is the watchman regulatory policing style?

Answer 9

using discretion and staying out of the way, with officers who possess “only marginal competence”

Question 10

What is the legalistic regulatory policing style?

Answer 10

aggressive policing style

have formal guidelines instructing enforcement officers when to bring actions

Question 11

What is the free agent policing style?

Answer 11

similar to the legalistic, but regulatory officers are given more leeway in deciding how to proceed with the case

Question 12

Where do we get information during investigations?

Answer 12

1. ) agencies
2. ) whistleblowers
3. ) documentary evidence
4. ) interviews

Question 13

What are issues with using law enforcement to respond to WCC ?

Answer 13

• resource problems
• relationship dynamics
  
  • victim/offender/witness relationship
• time
• complexity
• proof
• perceptions of WCC police work

Question 14

what makes investigating WCC so different than conventional crime?

Answer 14

• victims draw the investigation
• collaboration b/w diff LE agencies.
• usually documented evidence.

Question 15

What are the different types of evidence used during investigation?

Answer 15

• absence of business expenditures
• absence of business
• neighbor’s testimony
• Wire tapping
• PC removal

Question 16

What is the definition of whistleblowing?

Answer 16

“reporting by a current or former employee of illegal or unethical practices in an organization to ppl w/power or resources to take action.”

Question 17

What are the motivations for whistleblowers?

Answer 17

• to feel free

- to do the right thing

Question 18

Tips for whistleblowers dealing with challenges?

Answer 18

1) tip lines
2) investigators and professional organizations
3) top management
4) more communication within the company and with external agencies

Question 19

Prosecution in WCC/CC is _____

Answer 19

rare

Question 20

Why prosecutors decide to prosecute certain cases?

Answer 20

1. ) more $$: due to harms caused
2. ) more # of victims
3. ) strong belief that offender is guilty
4. ) believe that they will win, likelihood of prosecutorial success.

Question 21

What are common defenses used by corporations and wcc offenders?

Answer 21

1. ) Rogue employee: misconduct resulted from individual employee’s actions, not the result of corporate activities.
2. ) due diligence defense: corp. says it did everything it could to abide by the law.

Question 22

Due diligence is determined by whether corporations have:
1)
2)

Answer 22

1) established compliance program

2) assigned responsibilities for supervising compliance program to high ranking employee.

Question 23

What makes defending a WC offender different from defending a street offender?

Answer 23

• more records+ witnesses
• media
• stronger evidence
• jury prejudices.

Question 24

________ __________- when a WCC is heard in more than 1 court simultaneously (civil/criminal)

Answer 24

Parallel Proceedings

Question 25

Parallel Proceedings are warranted in 2 situations:
1)
2)

Answer 25

1) criminal proceedings may need to parallel civil or administrative hearing that addresses immediate needs to protect health & safety.
2) simultaneously proceedings may be necessary to respond to cases that are especially serious.

Question 26

Reasons to use Parallel Proceedings.

Answer 26

• need to address an immediate threat.
• threat of losing assets or bankruptcy
• civil case was already underway when criminal case began.
• civil case fits within a national priority

Question 27

What are the concerns of Parallel Proceedings?

Answer 27

• double jeopardy
• excessive fines
• due process violations.