Deck 7: Crime and the Business Community

Question 1

In order to demonstrate a claim under the Racketeer Influenced and Corrupt Organizations (RICO) Act, one must show proof of more than one wrongful act.

Answer 1

True

Question 2

The term ________ or "guilty act" is used to describe the wrongful behavior in a criminal action.

A) actus reus
B) mens rea
C) criminal actus
D) locos actus
E) carpe diem

Answer 2

A

Question 3

Most states define larceny as stealing the property of another and converting it to your own personal use.

Answer 3

False

Question 4

According to the case United States v. Park, corporate executives cannot be held accountable for crimes due to their failure to act.

Question 5

Government inspectors may enter a business to conduct an inspection without a warrant if the industry is highly regulated such as food or firearms.

Question 6

White-collar crime is defined as a variety of nonviolent illegal acts against society that most often occur in the business context.

Question 7

Which of the following is punishable by imprisonment for more than one year or death?

A) Misdemeanor.
B) Felony.
C) Petty offenses.
D) Tort offenses.
E) Any business related crime.

Question 8

White-collar crimes are often committed by employees against a business.

Question 9

The primary purpose of criminal law is to punish an offender for causing harm to the public health, safety, or morals.

Question 10

A corporation cannot be considered a criminal under common law when mens rea is required because it is not an actual person and, thus, does not have a mind.

Question 11

Certain types of crimes, such as violations of regulatory statutes, allow punishment without the proof of a guilty mind. This is known as ________.

A) actus reus
B) a negligent action
C) mens rea
D) liability without fault
E) minimal harm

Question 12

Because of double jeopardy, a person found not guilty of a criminal offense cannot also face a civil charge for the same alleged actions.

Question 13

White-collar crime is not punishable by imprisonment under our existing criminal laws.

Question 14

Which of the following is an example of the imposition of strict liability?

A) A robber pulls a gun to rob a bank teller.
B) A burglar breaks into a home to steal jewelry.
C) A business sells cigarettes to a minor.
D) A minor shoplifts in a department store.
E) An adult shoplifts in a department store.

Question 15

In Berghuis v. Thompkins, the majority of the U.S. Supreme Court ruled that absent an explicit invocation of the right to remain silent, police may continue to interrogate a suspect, and what the suspect says may be used against him in court.

Question 16

Corporations cannot be held criminally accountable for strict-liability offenses under current law.

Question 17

Which of the following is a term describing the wrongful state of mind needed for a criminal action?

A) Mens rea.
B) Actus reus.
C) Res judicata.
D) Stare decisis.
E) Carpe diem.

Question 18

Embezzlement is distinguished from larceny because the embezzler does not take the property from another and is already in possession of the property.

Question 19

China punishes embezzlement and bank fraud less severely than the U.S.

Question 20

By broadening the scope of actions covered and the definition of a public official, Congress amended the Foreign Corrupt Practices Act to conform to the antibribery convention adopted by the Organization for Economic Cooperation and Development.

Question 21

Which of the following serves to combat bribery of foreign officials?

A) The Foreign Official Bribery Act
B) The International Bribery Prohibition Act
C) The Fair Business Act
D) The International Fair Business Practices Act
E) The Foreign Corrupt Practices Act

Question 22

Tricking consumers into changing their phone service to another carrier without their consent is known as which of the following?

A) Slamming
B) Cramming
C) Stuffing
D) Fraudulent adding
E) Fraudulent transfer

Question 23

Bank teller Hugo receives $1,000 from a customer for deposit into the customer's bank account. Instead of placing the money into the customer's account, Hugo puts it into his pocket. Which of the following offenses has he committed?

A) Forgery
B) False entries
C) False token
D) Embezzlement
E) Cramming

Question 24

Theodore violates the city's building code by not installing fire alarms on every floor. This is considered a(n) ________ which is usually punishable by a jail sentence of less than six months or a small fine.

A) felony
B) misdemeanor
C) petty offense
D) tort offense
E) unacceptable offense

Question 25

Geromy sends a letter to Melinda seeking money for his dying child. Geromy has no dying child and intends to use the money for personal pleasure. This is an example of ________.

A) false entries
B) false token
C) false pretenses
D) mail fraud
E) defalcation

Question 26

Crimes that are less serious and are punishable by fines or imprisonment of less than one year are considered to be ________.

A) petty offenses
B) felonies
C) juvenile petty offenses
D) tort offenses
E) misdemeanors

Question 27

Pauline, the president of Business Corp, falsified documents to make it appear as if she had been granted stock options on certain dates, and she selected the dates after the fact, picking dates on which the stock price was low. Which of the following offenses, if any, did she commit?

A) Insider trading
B) Pretexting
C) Defalcation
D) Stock option backdating
E) She did not commit any offense

Question 28

Dalynda threatens to tell Raul's boss that he is gambling on the company's time if he does not pay her $5,000. This is considered ________.

A) bribery
B) intentional deceit
C) corrupt practice
D) exploitation
E) extortion

Question 29

A person who illegally accesses or enters another person's or a company's computer system to obtain information or steal money is which of the following?

A) Backer
B) Reacher
C) Hacker
D) Trespasser
E) Illicit user

Question 30

Which of the following is true regarding corporate executives being held personally liable for business crime under the "responsible corporate officer" doctrine?

A) A corporate executive may never be held personally liable for a business crime.
B) Corporate executives may only be held personally liable for a business crime if they benefited personally from their actions in executing the business crime.
C) Corporate executives may be found personally liable for a business crime even if they did not engage in, direct, or know about a specific criminal violation.
D) A court may not assess criminal liability on a corporate executive unless the executive directly engaged in the specific criminal violation.
E) Criminal liability may not be assessed against a corporate executive unless the executive directly engaged in the criminal activity and also profited directly and personally from the criminal activity.

Question 31

Which of the following is the making of an entry into the books of a bank or corporation that is designed to represent the existence of funds that do not exist?

A) False entry
B) Defalcation
C) False pretenses
D) Ponzi scheme
E) Pretexting

Question 32

A person unlawfully enters a building with the intent to commit a felony, this would be considered a(n) ________.

A) robbery
B) burglary
C) larceny
D) arson
E) intentional crime

Question 33

If a person uses an explosive device in order to destroy a competitor's building, this is known as ________.

A) a white-collar crime
B) arson
C) larceny
D) burglary
E) intentional destruction

Question 34

Trevor goes door-to-door selling magazine subscriptions. Trevor knows, however, that he is simply taking money for subscriptions and has absolutely no intention of ever arranging for the provision of magazines. Which of the following offenses, if any, has he committed?

A) Defalcation
B) False entry
C) False token
D) False pretenses
E) Ponzi scheme

Question 35

The forceful and unlawful taking of personal property is which of the following?

A) Robbery
B) Burglary
C) Larceny
D) Arson
E) Criminal fraud

Question 36

Penny and Theodore comprise a scheme whereby Penny will send information to Theodore in regards to the moves her telecommunications company is making when she learns about it in their company's internal strategy meeting so he can make a better stock trade. This is known as ________.

A) insider trading
B) cramming
C) embezzlement
D) false token
E) check kiting

Question 37

Which of the following is the secretive and wrongful taking and carrying away of the personal property of another with the intent to permanently deprive the rightful owner of its use or possession?

A) Robbery
B) White-collar burglary
C) Larceny
D) Arson
E) Criminal fraud

Question 38

Using fraudulent means to obtain information about someone's phone use is which of the following?

A) Pretexting
B) Ponzi scheme
C) False pretenses
D) False token
E) Defalcation

Question 39

The misappropriation of trust funds or money held in a fiduciary capacity is which of the following?

A) False entries
B) Defalcation
C) False pretenses
D) Ponzi scheme
E) Pretexting

Question 40

Which of the following is an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later investors?

A) False entries
B) False token
C) False pretenses
D) Ponzi scheme
E) Pretexting

Question 41

A defendant who argues that commission of a crime was necessary to prevent a more severe crime from occurring is relying upon the defense of ________.

A) Entrapment
B) Necessity
C) Justifiable use of force
D) Duress
E) Inescapable action

Question 42

Drake and Julie are discussing criminal law. Julie tells Drake that, ordinarily, law enforcement agents must demonstrate that there is probable cause that a suspect committed or is planning to commit a crime in order to obtain an arrest warrant. Is she correct?

A) Yes
B) Yes, but only if the suspect agrees
C) No, law enforcement never needs a warrant
D) No, law enforcement only needs to have reasonable suspicion
E) No, law enforcement can make a judgment call at any time to arrest a person

Question 43

Which of the following is not an element of criminal fraud?

A) False representation of a material fact
B) The representation was meant to deceive
C) There was reasonable reliance on the false representation
D) There must be damages
E) The damages must be $500 or greater

Question 44

Which of the following is true in regards to the Fourth Amendment's protections for individuals?

A) There are no protections associated with the Fourth Amendment, only suggestions.
B) The safeguards against freedom of speech of an accused.
C) The safeguards and protections of an incarcerated individual to religious freedoms while being detained.
D) The safeguard against unreasonable searches and seizures along with restrictions on warrants.
E) That an incarcerated individual will have the opportunity to a trial with a jury of his peers.

Question 45

In a trial, if the judge reports that there is a "hung" jury, the judge simply means that:

A) The jury required the defendant to be retried.
B) The jury wanted the punishment of the defendant to be a public hanging.
C) The jury could not reach a verdict.
D) The jury decided they did not have enough evidence and requests the trial to begin over so enough evidence can be produced.
E) The jury was needing to talk to the judge in chambers to discuss the issues.

Question 46

At trial a defense lawyer states that evidence should not be admitted because it is "fruit of the poisonous tree." Upon which of the following is the attorney relying?

A) The exclusionary rule.
B) The Fourth Amendment Rule.
C) The Eden Rule.
D) The Adam Rule.
E) The Eve Rule.

Question 47

Under the Sarbanes-Oxley Act, it is now a felony to willfully fail to maintain proper records of audits and work papers for at least ________ years.

A) 2
B) 3
C) 4
D) 5
E) 6

Question 48

When a defendant makes a first appearance, which of the following occurs?

A) A magistrate determines whether there was proof beyond a reasonable doubt for the arrest.
B) A magistrate determines whether there was probable cause for the arrest.
C) A magistrate determines whether the defendant was properly booked but not whether the defendant was properly arraigned.
D) A magistrate determines whether the defendant was properly arraigned but not whether the defendant was properly booked.
E) A magistrate determines whether the defendant was properly booked and also whether the defendant was properly arraigned.

Question 49

Which of the following requires a "pattern"?

A) The Racketeer Influenced and Corrupt Organizations Act.
B) The False Claims Act.
C) The Sarbanes-Oxley Act of 2002.
D) The crime of false pretenses.
E) The crime of false token.

Question 50

If a defendant enters a plea in which they do not admit guilt but agrees not to contest the charges further, this is known as:

A) A partial defense.
B) An Information.
C) A nuisance plea.
D) Nolo contendere.
E) Plea of avoidance.

Question 51

In order for a person to use the insanity defense in a criminal suit, a person must prove that their mental state was so impaired that they ________.

A) could not distinguish right from wrong only
B) could not understand the wrongful nature of the act only
C) could not understand the wrongful nature of the act and could not distinguish right from wrong
D) are on a medication that impairs their ability to understand their criminal actions
E) the insanity defense is no longer allowed unless the crime is murder

Question 52

Under the Sarbanes-Oxley Act, which of the following is not true?

A) It is a felony to willfully fail to maintain proper records of audits.
B) Audit and paperwork associated with the audit must be kept for at least 5 years.
C) Punishment can be up to 10 years imprisonment if audit paperwork is not kept for 5 years.
D) The punishment for securities fraud has been increased to 25 years.
E) If found in violation of securities fraud a person can be imprisoned for life.

Question 53

Which of the following is true regarding the manner in which the exclusionary rule is derived from the U.S. Constitution?

A) It is specifically set forth in the Fourth Amendment.
B) It is specifically set forth in the Fifth Amendment.
C) It is specifically set forth in the Sixth Amendment.
D) It is specifically set forth in the Eighth Amendment.
E) No section of the U.S. Constitution specifically states the provisions of the exclusionary rule.

Question 54

Greg found out that Louise was using company funds to pay off gambling debts. Greg confronted Louise and was threatened by Louise that if he did not help him continue to skim company funds, he would have his friends "take care of Greg and his pretty little family" and showed him a gun. Once Louise is caught and charged with a crime, he also implicated Greg. Greg could claim which defense to his unwillingness to participate in the criminal activity?

A) Fraud
B) Necessity
C) Duress
D) Insanity
E) Entrapment

Question 55

Which of the following holds that a person may be deemed not guilty by reason of insanity, even if he or she knew that a criminal act was wrong, as long as the defendant was driven to commit the crime from some urge resulting from a mental deficiency the defendant could not resist?

A) The irresistible impulse test.
B) The involuntary act.
C) The substantial capacity test.
D) The duress defense.
E) The necessity defense.

Question 56

Which of the following is true regarding an arrest without a warrant?

A) A law enforcement agent can arrest a suspect without a warrant if the officer believes there is probable cause but not enough time to obtain a warrant.
B) A law enforcement officer may not arrest a suspect without a warrant even if the officer believes there is probable cause but insufficient time to obtain a warrant.
C) A law enforcement agent can arrest a suspect without a warrant only if a felony is involved.
D) A law enforcement officer can arrest a suspect without a warrant only if a violent crime is involved.
E) A law enforcement officer can arrest a suspect without a warrant only if the suspect is a repeat offender.

Question 57

Which of the following allows a defendant to be found not guilty by reason of insanity if he or she did not understand the nature of the act?

A) The irresistible impulse act.
B) The involuntary act.
C) The substantial capacity test.
D) The M'Naghten test.
E) The necessity defense.

Question 58

Of which of the following must a defendant be informed before questioning?

A) That the defendant must answer questions, or there will be a presumption of guilt at trial.
B) That statements made to law enforcement before arraignment may not be used against the defendant in court.
C) That the defendant has the right to consult an attorney before speaking to the police.
D) That unless the defendant can afford an attorney, the defendant will not have an attorney.
E) That the right to an attorney does not begin until after the defendant is arraigned.

Question 59

The ________ specifically provides the right to a speedy and public trial.

A) First Amendment
B) Fourth Amendment
C) Sixth Amendment
D) Due Process Clause
E) arrest warrant

Question 60

A defendant can use the ________ defense if the idea for a crime originated not with the defendant but with a police officer or other government official who suggested it to the defendant, and the defendant would not otherwise have committed the crime.

A) Entrapment
B) Necessity
C) Justifiable use of force
D) Duress
E) Inescapable action

Question 61

[Camping profits] Eva is the vice president at Big Chain Camping Goods Store. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Chain Camping Goods will rise dramatically at that point. Eva immediately buys a number of shares of her company's stock. She also tells her friend Claire about the expected purchase of stores. Claire wants to purchase stock in the company but lacks the funds with which to do so. Although she did not have the funds in Bank A, Claire decides to draw a check on Bank A and deposit the check in Bank B and then proceeds to write a check on Bank B to cover the purchase of the stock. Claire hopes that she would have sufficient funds to deposit before the check is presented for payment.
By purchasing stock in her company, Eva is guilty of which offense?

A) Insider trading
B) Tipping
C) Insider misappropriation
D) Extortion
E) She is guilty of no offense

Question 62

[Party Business, Inc.] Lila, who is the president of Party Business, Inc., tells Isaiah that buying stock in Party Business, Inc. right now is a good idea. Isaiah is only casually acquainted with Lila and does not know that she is an officer of the corporation. He, however, acting on her information which he believes to be public knowledge, investigates the company somewhat and proceeds to buy some stock. Both Lila and Isaiah are charged with insider trading.
After trial, Lila is found guilty, however, she feels the proceedings against her were unfair. Which of the following, if true, could be a violation of Lila's Sixth Amendment rights?

A) The courtroom was not private.
B) Lila's attorney was expensive.
C) She had to listen to witnesses against her.
D) The court clerk read the charges against her.
E) She knew one of the jurors, Zoe, from high school, and Zoe always disliked her.

Question 63

[Party Business, Inc.] Lila, who is the president of Party Business, Inc., tells Isaiah that buying stock in Party Business, Inc. right now is a good idea. Isaiah is only casually acquainted with Lila and does not know that she is an officer of the corporation. He, however, acting on her information which he believes to be public knowledge, investigates the company somewhat and proceeds to buy some stock. Both Lila and Isaiah are charged with insider trading.
After trial, the jury found the prosecution had met its burden of proof by a preponderance of the evidence. Did the jury apply the correct standard of proof?

A) Yes, in a criminal trial, the prosecutor must persuade the jury by a preponderance of the evidence that the defendant committed the crime.
B) Yes, because the jury is the proper finder of fact in a criminal trial.
C) No, because the judge is the proper finder of fact in a criminal trial.
D) No, in a criminal trial, the prosecutor must persuade the jury beyond reasonable doubt that the defendant committed the crime.
E) No, in a criminal trial, the judge must find a preponderance of evidence against the defendant.

Question 64

Fajiha is a billing expert for a healthcare facility that treats individuals who are covered only by Medicare and not private health insurance. Fajiha learns that her employer is committing fraud against the government by filing false Medicare claims. Under which of the following might she obtain a portion of any recovery obtained by the government?

A) The Medicare False Claims Act.
B) The False Claims Act.
C) The Sarbanes-Oxley Act of 2002.
D) The Medicare Recovery Act.
E) The Healthcare Fraud Act.

Question 65

[Green Gold] Miles owned a factory in which he manufactured furniture. Miles had some extra space in the factory and decided to use heat lamps to grow marijuana. He smuggled the marijuana into the hands of dealers by hollowing out the furniture and placing the marijuana inside. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Miles asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Miles was charged with growing marijuana. Miles refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Miles was declared not guilty because there was no evidence against him. The agent was very angry and arrested Miles immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Miles that he should be tried again because the judge was incorrect. Miles is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.
The difference between robbery and burglary is:

A) burglary occurs on the street outside of a building or dwelling while robbery occurs inside of a building.
B) robbery occurs on the street outside of a building or dwelling while burglary occurs inside of a building.
C) states often identify the two as the same crime.
D) robbery is the forceful and unlawful taking of personal property while burglary occurs when someone unlawfully enters a building with the intent to commit a felony.
E) burglary is the secretive and wrongful taking of personal property while robbery is entering a building to commit a crime.

Question 66

[Green Gold] Miles owned a factory in which he manufactured furniture. Miles had some extra space in the factory and decided to use heat lamps to grow marijuana. He smuggled the marijuana into the hands of dealers by hollowing out the furniture and placing the marijuana inside. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Miles asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Miles was charged with growing marijuana. Miles refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Miles was declared not guilty because there was no evidence against him. The agent was very angry and arrested Miles immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Miles that he should be tried again because the judge was incorrect. Miles is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.
Which of the following is correct regarding Fourth Amendment protections for businesses and the necessity of a search warrant prior to a search of a business?

A) The protections of the Fourth Amendment are not extended to businesses.
B) The protections of the Fourth Amendment are extended to businesses only if the businesses involve highly regulated industries.
C) The protections of the Fourth Amendment are extended to businesses only if the businesses are sole proprietorships.
D) The protections of the Fourth Amendment are extended to businesses, and warrants are necessary for any searches.
E) The protections of the Fourth Amendment are extended to businesses although at times no warrant is necessary to search highly regulated industries.

Question 67

[Divorce fallout] Dr. Eli, following a messy divorce, has encountered significant financial difficulties. Dr. Eli has a friend named Shady Sam who tells Dr. Eli that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Shady Sam tells Dr. Eli that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Shady says the wristband sells like hotcakes. Shady also tells Dr. Eli that he will pay Dr. Eli five dollars for every band that Dr. Eli can sell to his patients. Dr. Eli proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Eli then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Eli can entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing criminal prosecution.
By using UPS to send correspondence and samples of the bands to patients, Dr. Eli committed which of the following offenses, if any?

A) False pretenses
B) Fraudulent use of transit
C) Defalcation
D) Mail fraud
E) He is not guilty of any offense

Question 68

[Camping profits] Eva is the vice president at Big Chain Camping Goods Store. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Chain Camping Goods will rise dramatically at that point. Eva immediately buys a number of shares of her company's stock. She also tells her friend Claire about the expected purchase of stores. Claire wants to purchase stock in the company but lacks the funds with which to do so. Although she did not have the funds in Bank A, Claire decides to draw a check on Bank A and deposit the check in Bank B and then proceeds to write a check on Bank B to cover the purchase of the stock. Claire hopes that she would have sufficient funds to deposit before the check is presented for payment.
By buying stock, Claire is guilty of which offense, if any?

A) She is guilty of insider trading because she tipped information.
B) She is guilty of an insider-trading violation because she traded on tipped information.
C) She is guilty of extortion.
D) She is guilty of larceny.
E) She is not guilty of any offense.

Question 69

[Green Gold] Miles owned a factory in which he manufactured furniture. Miles had some extra space in the factory and decided to use heat lamps to grow marijuana. He smuggled the marijuana into the hands of dealers by hollowing out the furniture and placing the marijuana inside. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Miles asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Miles was charged with growing marijuana. Miles refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Miles was declared not guilty because there was no evidence against him. The agent was very angry and arrested Miles immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Miles that he should be tried again because the judge was incorrect. Miles is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.
In refusing to testify at trial, Miles relied upon which amendment?

A) The Second Amendment.
B) The Third Amendment.
C) The Fourth Amendment.
D) The Fifth Amendment.
E) The Sixth Amendment.

Question 70

[Divorce fallout] Dr. Eli, following a messy divorce, has encountered significant financial difficulties. Dr. Eli has a friend named Shady Sam who tells Dr. Eli that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Shady Sam tells Dr. Eli that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Shady says the wristband sells like hotcakes. Shady also tells Dr. Eli that he will pay Dr. Eli five dollars for every band that Dr. Eli can sell to his patients. Dr. Eli proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Eli then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Eli can entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing criminal prosecution.
By which of Dr. Eli's actions, if any, did he commit health care fraud?

A) Dr. Eli did not commit any acts of health care fraud.
B) By the submission of false claims to Medicare only.
C) By the receipt of kickbacks from Shady Sam only.
D) By the submission of false claims to Medicare and also by the receipt of kickbacks from Shady Sam.
E) By submitting false claims to Medicare, by receiving kickbacks from Shady Sam, and also by merely listening to what Shady Sam had to say.

Question 71

What was the result in the case of U.S. v. Park, the case in which the defendant, the president of a national food-chain corporation, claimed he should not be held liable for allowing food in a warehouse to be exposed to rodent contamination because he had delegated responsibility to subordinates?

A) The court dismissed all claims against him because of insufficient proof that he had actively allowed contamination.
B) The court dismissed all claims against him because of insufficient proof of negligence.
C) The court refused to dismiss claims against him because the offense was a strict liability offense.
D) The court refused to dismiss claims against him because of insufficient proof of delegation.
E) The court refused to dismiss claims against him because of proof that he had responsibility and authority to prevent the contamination or to correct it and failed to do so.

Question 72

Under the Sarbanes-Oxley Act, which of the following is true regarding the destruction of documents in a federal bankruptcy investigation?

A) The destruction of documents in a federal bankruptcy investigation is a misdemeanor with possible sentences of up to 364 days in jail.
B) The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 364 days in jail.
C) The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 5 years in jail.
D) The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 20 years in jail.
E) The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of life imprisonment.

Question 73

[Party Business, Inc.] Lila, who is the president of Party Business, Inc., tells Isaiah that buying stock in Party Business, Inc. right now is a good idea. Isaiah is only casually acquainted with Lila and does not know that she is an officer of the corporation. He, however, acting on her information which he believes to be public knowledge, investigates the company somewhat and proceeds to buy some stock. Both Lila and Isaiah are charged with insider trading.
A crime can be a felony, misdemeanor, or petty offense. How is this determination usually made?

A) The judge decides.
B) The jury decides.
C) The statute defining the crime usually establishes whether the crime is a felony, misdemeanor, or petty offense.
D) The prosecutor decides how the charges will read.
E) The statute defining the crime usually establishes whether the judge or jury decides if the crime is a felony, misdemeanor, or petty offense.

Question 74

[Party Business, Inc.] Lila, who is the president of Party Business, Inc., tells Isaiah that buying stock in Party Business, Inc. right now is a good idea. Isaiah is only casually acquainted with Lila and does not know that she is an officer of the corporation. He, however, acting on her information which he believes to be public knowledge, investigates the company somewhat and proceeds to buy some stock. Both Lila and Isaiah are charged with insider trading.
If Isaiah claims he was acting on Lila's information which he believed to be public knowledge, which defense could he claim?

A) Duress.
B) Entrapment.
C) Mistake-of-fact.
D) The Fifth Amendment.
E) Nolo contendere.

Question 75

[Divorce fallout] Dr. Eli, following a messy divorce, has encountered significant financial difficulties. Dr. Eli has a friend named Shady Sam who tells Dr. Eli that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Shady Sam tells Dr. Eli that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Shady says the wristband sells like hotcakes. Shady also tells Dr. Eli that he will pay Dr. Eli five dollars for every band that Dr. Eli can sell to his patients. Dr. Eli proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Eli then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Eli can entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing criminal prosecution.
Which of the following offenses, if any, did Dr. Eli commit by mailing correspondence to patients encouraging purchase of the band?

A) False pretenses
B) Fraudulent use of transit
C) Defalcation
D) Mail fraud
E) He is not guilty of any offense

Question 76

[Camping profits] Eva is the vice president at Big Chain Camping Goods Store. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Chain Camping Goods will rise dramatically at that point. Eva immediately buys a number of shares of her company's stock. She also tells her friend Claire about the expected purchase of stores. Claire wants to purchase stock in the company but lacks the funds with which to do so. Although she did not have the funds in Bank A, Claire decides to draw a check on Bank A and deposit the check in Bank B and then proceeds to write a check on Bank B to cover the purchase of the stock. Claire hopes that she would have sufficient funds to deposit before the check is presented for payment.
By her method of payment, Claire is guilty of which offense?

A) Ponzi scheme
B) Insider-trading scheming
C) Pretexting
D) Check defalcation
E) Check kiting

Question 77

In the U.S. Supreme Court case of Miranda v. Arizona, the court established what?

A) The right of a defendant to a 24-hour break from interrogation
B) The right of the state to question the witness continually for 24 hours
C) The right of a person to remain silent when being questioned until they are brought to trial
D) The right to be represented by an attorney paid for by the state.
E) The right of a person to remain silent and the right to an attorney

Question 78

[Camping profits] Eva is the vice president at Big Chain Camping Goods Store. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Chain Camping Goods will rise dramatically at that point. Eva immediately buys a number of shares of her company's stock. She also tells her friend Claire about the expected purchase of stores. Claire wants to purchase stock in the company but lacks the funds with which to do so. Although she did not have the funds in Bank A, Claire decides to draw a check on Bank A and deposit the check in Bank B and then proceeds to write a check on Bank B to cover the purchase of the stock. Claire hopes that she would have sufficient funds to deposit before the check is presented for payment.
By providing information to Claire regarding the purchase, Eva is guilty of which offense, if any?

A) She is guilty of an insider-trading violation by tipping the information.
B) She is guilty of an insider-trading violation by being tipped.
C) She is guilty of an insider-trading violation by both tipping and being tipped.
D) She is guilty of criminal extortion.
E) She is not guilty of any offense.

Question 79

Because of the major accounting and fraud scandals in the early 2000s against major business such as Enron, WorldCom, Global Crossing, and Arthur Andersen, which of the following federal legislative actions was passed?

A) RICO.
B) The False Claims Act.
C) The Imminent Harm to People Act.
D) The Fraud Recovery Act.
E) The Sarbanes-Oxley Act.

Question 80

[Green Gold] Miles owned a factory in which he manufactured furniture. Miles had some extra space in the factory and decided to use heat lamps to grow marijuana. He smuggled the marijuana into the hands of dealers by hollowing out the furniture and placing the marijuana inside. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Miles asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Miles was charged with growing marijuana. Miles refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Miles was declared not guilty because there was no evidence against him. The agent was very angry and arrested Miles immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Miles that he should be tried again because the judge was incorrect. Miles is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.
When Miles was found not guilty, and the agent immediately arrested Miles again, the agent's actions would be found unconstitutional under ________.

A) the freedom of prosecution theory
B) the prosecutorial misconduct theory
C) the single trial defense
D) double jeopardy
E) the twice tried theory