National American University

BUSINESS L 3100

Chapter 8-CRIMES

TRUE/FALSE

1)Crimes and criminal punishment guidelines are specified in detailed criminal codes and statutes.

 

                                           

 

2. The criminal law of all states is the same because all states have adopted a uniform criminal code.

 

                                           

 

3. Generally, misdemeanors are more serious than felonies.

 

                                           

 

4. An act that is a felony in one state be a felony in all states.

 

                                           

 

5. A crime consists of three elements: the mental state, the intent, and the act.

 

                                           

 

6. It is not necessary that some person be harmed for an act to be considered a crime.

 

                                           

 

7. "Mental state" does not require an awareness of guilt.

 

                                           

 

8. A person may be held criminally liable for acts committed by another.

 

                                           

 

9. For business crimes, managers cannot be held criminally responsible for the conduct of their employ- ees.

 

                                           

 

10. Because a corporation is not a human being, it cannot be convicted of a crime.

 

                                           

 

11. Executives can be convicted on the basis that something went wrong at their company.

 

                                           

 

12. Some types of instruments of crime are automatically forfeited.

 

                                           

13. Criminal penalties for corporations are based on a percentage of sales.

 

                                           

 

14. Corporate Integrity Agreements are the equivalent of putting a corporation on probation.

 

                                           

 

15. Corporate managers found guilty of masterminding any criminal activity must be sentenced to prison time.

 

                                           

 

16. The Sarbanes-Oxley Act (SOX) made minor adjustments to penalties and prison sentences for execu- tives of companies.

 

                                           

 

17. White-collar crimes generally involve violence.

 

                                           

 

18. The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions.

 

                                           

 

19. The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed primarily to prevent individuals involved in organized crime from investing money obtained through racketeering in legiti- mate businesses.

 

                                           

 

20. Bribery requires the use of violence.

 

                                           

 

21. Extortion and blackmail are exactly the same.

 

                                           

 

22. The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the United States.

 

                                           

 

23. Forgery includes signing another person's name to a check with the intent to defraud.

 

                                           

 

24. The issuing or delivery of a forged instrument to another person constitutes the crime of counterfeiting a forged instrument.

                                           

 

25. Embezzlement involves fraud.

 

                                           

 

26. Larceny is best defined as the taking of personal property from the presence of the victim by the use of force or fear.

 

                                           

 

27. A computer crime generally can only be committed by a person having some knowledge of the opera- tion of a computer.

 

                                           

 

28. Destroying information stored on a computer may be a crime.

 

                                           

 

29. The Fourth Amendment warrant requirement does not apply to businesses.

 

                                           

 

30. Corporations are entitled to Fifth Amendment protection.

 

                                           

 

31. Due process includes the right to be heard, question witnesses, and present evidence.

 

                                           

 

MULTIPLE CHOICE

 

1. Crimes are generally defined and their punishments specified by:
   1. trial court judges.
   2. appellate judges.
   3. codes and statutes.
   4. the United States Constitution.

                                           

 

2. Which of the following statements is true?
   1. Felonies are punishable by a minimum of six months in prison.
   2. Felonies involve white-collar crimes only.
   3. Felonies are more serious than misdemeanors.
   4. All of the above.

                                           

 

3. A crime generally consists of:
   1. an act or omission.
   2. a mental state.
   3. a mental state and an act or omission.

3. 4. a mental state, an act or omission, and harm.
4. A person who did not necessarily commit the crime can still be held criminally responsible for acts committed by others                       .
   1. only for non-business crimes
   2. only for business crimes
   3. both a. and b.
   4. neither a. nor b.

                                           

 

5. When a defendant is convicted of a crime, the court may also declare that the defendant’s rights in any property used or gained from the crime be confiscated. This is known as                     .
   1. forfeiture
   2. reversion
   3. subversion
   4. divestiture

                                           

 

6. Penalties for crimes are:
   1. always paid to the government.
   2. always paid to the victim(s).
   3. shared equally between the government and the victim(s).
   4. subject to forfeiture.

                                           

 

 

7. White-collar crimes:
   1. always involve the threat or use of force or violence.
   2. generally involve the threat or use of force or violence.
   3. sometimes involve the threat or use of force or violence.
   4. do not involve the threat or use of force or violence.
8. Conspiracy means           committing a criminal act.
   1. thinking about
   2. an agreement aimed at
   3. thinking with others about
   4. all of the above

                                           

 

9. Money                          involves the knowing and willful participation in a financial transaction involving unlawful proceeds when the transaction is designed to conceal or disguise the source of the funds.
   1. ironing
   2. vacuuming
   3. laundering
   4. cooking

                                           

10. The Racketeer Influenced and Corrupt Organizations (RICO) Act is a product of:
    1. Congress.
    2. international trade agreements.
    3. state law.
    4. none of the above.

                                           

 

11. Racketeering is defined as:
    1. using money to influence public officials.
    2. using money to influence employees of competitors.
    3. using money derived from illegal activities to invest in legitimate businesses.
    4. using money to influence foreign officials.       
12. Bribery is defined as:
    1. giving money, property, or any benefit to a person to influence that person's judgment.
    2. using one’s position as a public official to make an illegal demand.
    3. using one’s position as a nonpublic official to make an illegal demand.
    4. exerting improper political influence.                
13. Blackmail is defined as:
    1. giving money to a person to influence that person's judgment.
    2. an illegal demand made by a public official.
    3. an illegal demand made by a nonpublic official.
    4. providing improper political influence.              
14. Which of the following statements regarding the Foreign Corrupt Practices Act is true?
    1. It applies only to foreign officials in this country.
    2. It applies only to foreign officials outside this country.
    3. It applies only to "grease" payments.
    4. None of the above statements is true.             
15. Counterfeiting is:
    1. a federal crime only.
    2. a state crime only.
    3. both a federal and state crime.
    4. none of the above.

                                           

 

16. Perjury occurs:
    1. only in federal court.
    2. only in written form.
    3. only in state courts.
    4. none of the above.

                                           

17. Knowingly making false statements in a loan application to a federally insured bank:
    1. is a form of embezzlement
    2. is a federal crime.
    3. is a crime in the state the bank operates in.
    4. all of the above.

                                           

 

18. Under the Sarbanes-Oxley (SOX) obstruction of justice provision, auditors must retain working papers related to a client’s audit for at least:
    1. 3 years.
    2. 5 years.
    3. 10 years.
    4. 20 years.

                                           

 

19. Sarbanes-Oxley (SOX):
    1. created a new form of mail and wire fraud.
    2. requires corporate officers to certify their financial statements.
    3. provides for both fines and jail time for corporate fraud
    4. all of the above.

                                           

 

20. Which of the following is NOT a common law crime?
    1. Larceny
    2. Robbery
    3. Blackmail
    4. Arson

                                           

 

21. A computer crime generally requires that:
    1. the criminal possess a computer.
    2. the victim possess a computer.
    3. the criminal have some knowledge of computers.
    4. the victim have some knowledge of computers.           
22. Computer crimes include:
    1. theft of hardware.
    2. theft of software.
    3. intentional damage to information stored on a computer.
    4. all of the above.

                                           

 

23. The unauthorized use of a computer belonging to someone else is:
    1. a crime in all states.
    2. a crime in some states.
    3. not a crime in any state.
    4. a crime under federal law only.

                                           

24. The Economic-Espionage Act (EEA):
    1. makes it a crime to use a fraudulently obtained device to obtain money through a elec- tronic fund transfer system.
    2. makes it a crime to send unsolicited bulk emails.
    3. makes it a crime to transfer proprietary files, documents and information from a computer to an unauthorized person.
    4. all of the above.

                                           

 

25. The Fourth Amendment to the United States Constitution’s protection against unreasonable searches applies to:
    1. personal homes only.
    2. businesses only.
    3. both homes and businesses.
    4. none of the above.

                                           

 

26. The Fifth Amendment to the United States Constitution’s protection against self-incrimination applies to:
    1. individuals only.
    2. corporations only.
    3. both individuals and corporations.
    4. individuals, but only in their official capacity within a business.               
27. Due process rights apply to:
    1. individuals only.
    2. corporations only.
    3. both individuals and corporations.
    4. individuals, but only in their official capacity within a business.               

 

CASE

 

1. James Smith, a health inspector for the state of Missouri, inspected a restaurant owned by Salley Slick. Smith found numerous health violations in the restaurant and fined Slick accordingly. When Smith no- tified Slick of the infractions, Smith strongly suggested that $5,000 "would sure prove handy in the Spring" when he planned to purchase a new fishing boat. Slick understood Smith's obvious hint and of- fered Smith $5,000 if he would lose the paperwork concerning the failure of the restaurant to meet proper inspection guidelines. Smith accepted the $5,000 and lost the paperwork. One month later, Smith returned to the restaurant and told Slick that he would reappear every month and find violations unless Slick produced $1,000 each month to go toward the purchase of a fleet for Smith. Slick agreed to make the $1,000 payments. What crimes have been committed by Smith and Slick?