Exam 3 Prep Flashcards
Axel didn’t know the speed limit in Colorado was 65 mph, he thought it was 75. Axel was cited for speeding when he was driving 75 on the outskirts of Denver while driving on Interstate 70. Which of the following provides Axel a defense to this crime?
Mistake of law
Mistake of fact
Necessity
None of the answer choices are correct.
None of the answer choices are correct
Zach “roofied” his friends’ drinks and they committed 27 felonies in one wild night in Las Vegas. The friends’ best defense to the criminal charges would be:
involuntary intoxication
Stabler was the CEO of Biffco Tractors of Savannah. He hired a new sales manager, Cindy, who had worked for Farmall, a competitor. Stabler was delighted when Cindy broke sales records. When he asked about her secret, she told him “I brought a complete list of account information over from Farmall, downloaded all the inside stuff.” What crime, if any, has Stabler committed if he allows Cindy to continue to use this information from Farmall as his employee?
Theft of trade secrets
Stanley Moneybags, CFO of XYZ Corp., knew the next day at a press conference XYZ would announce record losses. Stanley knew this would mean a big drop in XYZ stock, so he called his old University of Georgia Business School friend Tyrone and told him: “Listen up old buddy, those 10,000 shares of XYZ stock you own? Sell them pronto, because tomorrow after the press conference I’m holding XYZ stock will take a huge hit.” On Tyrone’s orders, Melinda, his stock broker, then sold his shares in XYZ. A federal prosecutor indicted Tyrone for insider trading. Is Tyrone guilty? Why/why not?
Tyrone is guilty; he was an insider for the sake of the law under these circumstances and used inside information.
High End China operates a chain of kitchenware stores. Rockefeller is a guest at one of the stores and trips on a ripped rug near the cash register. High End China owes Rockefeller which of the following special duties?
A special duty as an invitee
The highest and most comprehensive duty owed by a landowner to a person on the owner’s property is owed to
An invitee
An example of a licensee would be Jeffrey, a traveling salesman, who walks by a “No soliciting” sign posted on the front gate and knocks on Zelda’s door.
false
Benji took a wild swing at Renaldo, but Renaldo ducked and Benji missed completely. Would any tort have been committed, and if so, what?
Assault
Res ipsa loquitur does not require that the plaintiff prove the exact cause of negligence.
true
The Restatements provide for a __________________ to shield a merchant from liability for temporarily detaining a party who is reasonably suspected of stealing merchandise.
Shopkeeper’s privilege
______is the tort category that provides compensation to an injured party when the harm was caused by the unreasonable acts of a tortfeasor even when the harm was unintentional.
Negligence
Embezzlement is not just about
stealing from your company or boss,
it’s about the _____
entrustment
Examples of larceny and embezzlement
Larceny= U see a bag of money, grab it and take off.
Embezzlement= You were told to deposit money to a bank, instead you do a wrongful act with it
Moskal’s embezzlement case study
He was entrusted with helping clients. But he borrowed millions of client funds without their consent. Even though he paid it back, he still got held accountable for embezzlement via misuse of access.
Forgery
intentionally making or altering a writing or document that wrongfully puts a liability on another; federal crime
Pan American Airlines Forgery example
Mr. Auginburn intentionally generated fake checks and made millions of dollars. This puts the liability on Pan American or even the bank
If someone writes someone else’s signature on the checks, that would be forgery because
It puts the liability of the person they imitated on the check .
Obtaining goods by false pretenses
it’s the intentional use of a materially false statement to induce another to give you title to their stuff.
.Can occur via omission
Examples of false pretenses
- a cubic zirconium diamond not being worth nearly as much
- A car without a motor being sold to a customer; misrepresentation.
- Junk copier; has millions of copies when its not that good in reality
Close relatives to false pretenses
- You write a check for a TV when you don’t have the money to cover it in the bank; bad check
- If someone sees your credit card number and uses it without you knowing; stolen credit card
The difference between forgery and false pretense
When the committing forgery, the liability is on others while the false pretense liability is on you.
If it is not in writing, it is a false pretense. If it is, its forgery
Mail Fraud Act of 1990 Covers what ?
Intent
Scheme to defraud the public
Mail communication
Mail fraud applies to
any form of print, and advertising, direct mail, misrepresenting things, etc.
Mail Fraud is federal. Meaning what?
means you’re up against the feds and the federal penitentiary if you violate it.
Mail fraud doesn’t only apply to USPS, but also
FedEx, UPS, or other private carriers
Example of mail fraud
When someone sends you brochures and mail of a luxurious property, but in reality the pictures are fraudulent and don’t actually represent the property at all.
Wire fraud
Federal law makes it illegal to use the wires, radio, internet, or TV to carry out fraud on the public.
Penalties for wire fraud can be up to ____ years in the fed pen, up to $____ K per violation (_____, $1 M if bank involved)
20 years, $250K, 30 years
Wire fraud examples
- fishing schemes via fake email
- fake paypall schemes
- Imitate as a company asking for credit card info, etc.
Insider trading
Involves the wrongful use of secret information about a company to make a profit on a stock.
The Insider Uses inside information
To _____or ____
In connection with the purchase or sale of a security
Make a profit, avoid a loss
An insider can be within the company or
affiliated with the company
Further example of insider trading
A CEO asks her husband to buy the company stocks on the basis of inside information since she cant buy it herself
A couple corp executives bribes a waitress to buy their pharmaceutical shares of stock to gain profit.
Martha Stewart Insider Trading Case Study
Martha’s stock broker was selling incline stock rapidly. She told a lie to the authorities via obstruction of justice and got imprisoned for it.
Economic Espionage Act of 1996
Makes it a crime to steal Trade Secrets
Theft of Trade secrets examples ; intellectual property
- Stealing the coke secret formula
- Stealing sales intelligence; involves who is involved, what they do, their credit, etc.
