Deck 10: Policing and Regulating White Collar Crime

Question 1

Which of the following factors does not hinder the involvement of local police departments in white collar crime cases?

A) The orientation of police training towards more conventional crime
B) The higher chances of failing to clear such cases, which expose officers to the risk of being perceived as incompetent
C) The fact that officers are not aware that white collar crime is a problem
D) The fact that officers often think it is more exciting to investigate conventional crime

Answer 1

C

Question 2

Which of the following is not a function of federal regulatory agencies?

A) Rule-making
B) Administration
C) Operation of jury trials
D) Adjudication

Answer 2

C

Question 3

The Inspectors General:

A) are the government agents in charge of inspecting food
B) are attached to a variety of government departments and agencies, and conduct internal audits and investigations
C) are in charge of insuring that all government transportation vehicles are safe
D) are traditional agents of the English government, but are unknown in the American system of government

Answer 3

B

Question 4

Which of the following is not a way in which the regulatory justice system tends to differ from the criminal and civil justice systems?

A) It has a generally lower public profile
B) It is less likely to involve an adversarial confrontation
C) It has the least likelihood of being involved with alleged business wrongdoing
D) It has less stigma associated with it, at least relative to the criminal justice system

Question 5

Which argument has not surfaced in the contemporary debate over economic regulation?

A) Regulation is economically inefficient
B) Without regulation, undesirable economic consequences can develop
C) Regulation decreases unemployment
D) Regulation decreases international competitiveness

Question 6

The U.S.Customs Service investigates all but which of the following activities?

A) Money laundering
B) Foreign corrupt payment
C) Falsified import or export documents
D) Counterfeiting of foreign currency

Question 7

In the 1970s, the F.B.I.was revealed to have engaged in all but which of the following forms of illegal or improper conduct?

A) Disruption of domestic dissident groups
B) Systematic agency cooperation with Soviet spies
C) Illegal entries and burglaries
D) Involvement in improper political activities

Question 8

The federal agency given the authority to pursue and capture white collar crime fugitives is the:

A) U.S. Secret Service
B) U.S. Customs Service
C) U. S. Marshals Service
D) U. S. Postal Inspection Service

Question 9

The Internal Revenue Service:

A) assigns some 25% of its agents to criminal investigation
B) has narrowly defined investigative powers
C) is far more limited in its ability to seize evidence than is true of other investigative agencies
D) pursues only a very small proportion of cases as criminal cases

Question 10

During the half-century period in which Edgar Hoover was its director, the F.B.I.:

A) accorded the highest priority to white collar crime
B) was concerned mainly with less publicly visible forms of crime
C) accorded rather little attention to white collar crime
D) was quite unaware of corrupt and improper dealings of various politicians and businessmen

Question 11

The policing force which is most involved with investigating white collar crime operates at which of the following levels?

A) Rural
B) Urban
C) State
D) Federal

Question 12

The U.S.Postal Inspection Service is most likely to be involved with investigating which of the following types of crime?

A) Corporate
B) Crimes of professionals
C) Contrepreneurial
D) Technocrime

Question 13

Federal criminal prosecutions in white collar crime cases are initiated by which of the following?

A) The Department of Justice or U.S. Attorneys
B) Federal regulatory agencies
C) Federal investigative agencies
D) The Inspector Generals

Question 14

Which of the following American presidents was most associated with a movement towards deregulation of the market?

A) Franklin D. Roosevelt
B) John F. Kennedy
C) Richard Nixon
D) Ronald Reagan

Question 15

Which of the following was the first federal regulatory agency specifically directed toward overseeing potentially harmful corporate activity?

A) Environmental Protection Agency
B) Interstate Commerce Commission
C) Security and Exchange Commission
D) Occupational Safety and Hazards Agency

Question 16

Which of the following federal agencies has used its criminal investigative division's forensic crime lab to help solve many white collar crimes?

A) U.S. Secret Service
B) Internal Revenue Service
C) U.S. Customs Service
D) U. S. Postal Inspection Service

Question 17

The U.S.Secret Service is most likely to be involved with investigating white collar crimes that:

A) involve counterfeiting of U.S. currency
B) are directed against the U.S. president and his / her administration
C) are committed abroad and directed at Americans
D) are committed by Americans and directed at people in other countries

Question 18

The first major period of federal regulatory expansion at the beginning of the 20th century was inspired by which of the following?

A) Concern over the effects of the great depression
B) Environmentalist and consumer activist groups
C) Populist sentiments against the abuses of big businesses
D) Conservative political interest groups

Question 19

Which of the following has not functioned to discourage substantial police involvement with white collar crime?

A) The determination by the police that far less harm results from white collar crime.
B) The fact that media images of white collar crime create less public outrage than media images of conventional violent crime
C) The traditional difficulty encountered by police in distinguishing between legal and illegal business practices
D) Less public and political pressure to deal with white collar crime

Question 20

_____ also have the responsibility of disposing of seized assets in white collar crime cases.

A) U.S. Marshals
B) U.S. Postal Inspection Service
C) U.S. Secret Service
D) U.S. Customs Service

Question 21

When accountants, lawyers, and other parties fail to prevent corporate crime its referred to as:

A) corporate perpetration
B) professional failure
C) gatekeeper failure
D) private policing

Question 22

Which of the following regulatory agency was accused of scandalous misconduct during the Reagan administration, leading to the criminal conviction and imprisonment of a political appointee to the agency?

A) The Security and Exchange Commission
B) The Occupational Safety and Health Agency
C) The Environmental Protection Agency
D) The Food and Drug Administration

Question 23

Which of the following is not a way in which regulatory rules differ from criminal laws?

A) They have sanctions associated with their violation
B) They are more ambiguous
C) They are more focused on the risk (rather than the occurrence) of harm
D) They are geared toward strict liability

Question 24

When regulatory agency officials with a pro-industry bias are appointed to office, or can anticipate lucrative private industry careers following government service, the situation is known as which of the following?

A) Agency surrender
B) Agency capture
C) Agency engagement
D) Agency independence

Question 25

Private policing:

A) is a much smaller enterprise than public policing
B) never engages in cooperative ventures with public police
C) is often oriented toward avoiding criminal prosecution of matters it investigates
D) tends to be focused on the wrongdoing of higher-level corporate officials

Question 26

Since the 1980s, government prosecutors have:

A) concluded there are no circumstances under which attorneys can be held liable for frauds involving clients
B) typically prosecuted more attorneys than businessmen in frauds such as the S & L failures
C) argued for the abandonment of legal codes of ethics, which are simply manipulated by the legal profession
D) more aggressively pursued the position that lawyers who advised clients engaged in on-going massive frauds are themselves responsible

Question 27

According to the text, which of the following is true of the role played by corporate boards in self-regulation?

A) It is increasing
B) It is decreasing
C) It is limited and often interferes with middle management's responsibilities
D) It is supposed to be an active one, but is often unsatisfactory

Question 28

Corporate offenders who are viewed as deliberately breaking laws to maximize profit are regarded by agency personnel as which of the following?

A) Amoral calculators
B) Political citizens
C) Organizationally incompetent
D) Task-oriented

Question 29

Which of the following is the basic rationale for the Federal Trade Commission?

A) Prevent unfair competition and anticompetitive mergers
B) Prevent interstate trade
C) Encourage aggressive advertising
D) Encourage business mergers

Question 30

The Environmental Protection Agency's reach expanded significantly during which of the following decades?

A) The 1890s
B) The 1930s
C) The 1970s
D) The 1980s

Question 31

During the Reagan era of the 1980s, the OSHA relied most heavily on which of the following?

A) Inspections
B) Vigorous criminal law referrals
C) Worker lawsuits
D) Aggressive preventive action against health hazards.

Question 32

According to Braithwaite and Fisse, which of the following is not a common reason that corporations expend resources to police themselves?

A) They are not uniformly indifferent to an ethical obligation to do so
B) They want to be seen as the moral leader in their respective economic sector
C) They have a powerful self-interest in maintaining a good public reputation
D) They want to preempt the imposition of government regulation

Question 33

Which of the following is true of the American Bar Association standards on legal ethics?

A) They have consistently required lawyers to blow the whistle on clients they discover to be engaged in fraud
B) They prohibit lawyer cooperation with law authorities in any circumstance whatsoever involving the lawyer's client
C) They appear to simultaneously prohibit attorney participation in client misconduct while discouraging attorney investigation of client activities
D) They clearly state that protection of the public welfare always takes precedence over lawyer/client confidentiality

Question 34

Which of the following has not been adopted as a strategy to diminish the problem of corrupting of regulatory agencies?

A) Creating prohibitions against moving into regulated industries for a period after agency service
B) Limiting agency discretion with more specific statutes
C) Prohibiting people with knowledge of the industry to be regulated from being hired by regulatory agencies
D) Promoting the professionalization of agency personnel

Question 35

Which of the following regulatory agency styles displays the greatest proactive initiative and technical competence?

A) Service
B) Watchman
C) Legalistic
D) Free agent

Question 36

Which of the following is a basic limitation on the effectiveness of the Food and Drug Administration (FDA)?

A) It cannot engage in plant inspections
B) It cannot issue warnings
C) It often does not carry out tests directly
D) It cannot make referrals for criminal prosecution

Question 37

Yeager's study of the Environmental Protection Agency found evidence of a strong structural bias in the regulatory process which favors which of the following?

A) Smaller, weaker corporations
B) Larger, more powerful corporations
C) Medium-sized, moderately powerful corporations
D) Individual entrepreneurs

Question 38

The traditional standard for auditors is that:

A) they cannot in any way be held responsible for financial misrepresentations of clients
B) they are obliged to aggressively uncover and report any possible financial misrepresentations
C) they are responsible for detecting managerial misrepresentations that would produce misleading financial statements, if detected by generally accepted
Auditing practices
D) they are solely responsible for financial misrepresentations, once they have conducted an audit

Question 39

The Security and Exchange Commission (SEC) was founded as a response to which of the following?

A) The actions of the robber barons of the late 19th century
B) The exposés of the turn-of-the-century muckrakers
C) The 1929 stock market crash
D) The black market activities of World War II

Question 40

The Occupational Safety and Health Administration is:

A) the first federal regulatory agency that was established
B) one of the most controversial federal regulatory agencies
C) an agency devoid of any rule-making authority
D) an agency with no significant sanctions available to it

Question 41

Much of the 19th century was dominated by a laissez faire economic philosophy,
which meant there was little regulation in the modern sense.

Question 42

Following the terrorist attacks of September 11, 2001, the proportion of F.B.I.
resources assigned to white collar crime cases increased.

Question 43

Federal investigative agencies are supposed to bring the most serious white collar
crime cases, where criminal prosecution is warranted, to the attention of the U.S.
Department of Justice or one of the U.S.attorneys.

Question 44

A much broader range of agencies is involved in the policing of white collar
crime than in the policing of conventional crime.

Question 45

Economic regulation expanded much more dramatically from the early 1970s on than social regulation.

Question 46

A major limitation on the Inspectors General's ability to root out internal
government corruption is the fact that they remain external to the department they
are investigating.

Question 47

State and federal law enforcement agencies play a comparable role in the
investigation of white collar crime cases.

Question 48

Regulatory enforcement occurs in only a very small percentage of the cases where
it could be applied.

Question 49

The majority of tax cases investigated by the IRS are disposed of as civil matters.

Question 50

Federal policing agencies make the least substantial response to white collar
crime of all policing agencies.

Question 51

In recent years, the U.S.Marshals have engaged increasingly in the pursuit of
white collar crime fugitives.

Question 52

Public pressure is less likely to be intense for arrests in white collar crime cases
than in predatory violence cases.

Question 53

The level of FBI commitment to white collar crime has remained stable since the creation of the agency.

Question 54

The chances of police failure in white collar crime cases are lower than in the case
of conventional crime.

Question 55

The U.S.Postal Inspection Service has been especially active in investigating
forms of white collar crime involving fraud.

Question 56

Historically, white collar crime has not been a principal focus of concern for law
enforcement agencies.

Question 57

The Criminal Division of the U.S.Department of Justice is the only division of
that department that pursues white collar crime cases.

Question 58

Which of the following statements about self-regulation is true?

A) It is commonly called for and promoted by top-level corporate executives
B) It is never in the interest of corporations
C) It plays an especially important role in the professions
D) It results in professional disciplinary actions against a very large number of professionals

Question 59

White collar crime became a major priority for the F.B.I.during the half-century
tenure of J.Edgar Hoover as the agency's director.

Question 60

The lines of jurisdiction between the different federal investigative agencies are
not always sharply drawn.

Question 61

The term "cognitive regulatory capture" has been applied to the economic crisis of 2008.

Question 62

There is an ongoing debate over the moral rightness, desirability, and expediency
of government regulation.

Question 63

Research has shown that the regulatory system clearly favors smaller
corporations.

Question 64

Regulatory agency hearings are less formal than regular court hearings and trials.

Question 65

The Environmental Protection Agency (EPA) has been especially noted for its
historical immunity to any pressures from regulated businesses.

Question 66

The FTC (Federal Trade Commission) often opts to negotiate a consent order
calling for the cessation of some prohibited practice.

Question 67

If regulatory agencies take steps which benefit a particular industry, it is
uniformly the case that the agency is "captive" to the industry.

Question 68

Relative to criminal laws, regulatory rules are likely to be more focused on the risk of harm, rather than its occurrence.

Question 69

A leftist or progressive critique has argued that the principal objective of
regulatory agencies in a capitalist society is to maintain broad popular
legitimation of the system while at the same time promoting capitalist
accumulation of profits.

Question 70

Regulatory agencies are empowered to enforce rules made by Congress, but do
not have the power to make rules themselves.

Question 71

Regulatory agencies adopt the same strategies for different corporations so that
they are not suspected of treating them differently.

Question 72

The OSHA (Occupational Safety and Health Agency) has traditionally been more
focused on worker safety than on worker health.

Question 73

During the course of the 19ᵗʰ century the primary responsibility for regulating
corporations shifted from the federal level to state governments.

Question 74

Regulatory agencies established during the "New Deal" era were characterized by
considerable autonomy.

Question 75

The funding of the SEC matches its responsibilities for policing the security
markets.

Question 76

Much of the regulation developed during the early part of the 20ᵗʰ century was
supported by, and benefited, the newly regulated big businesses.

Question 77

It is rare for the SEC (Security and Exchange Commission) to refer cases for
criminal prosecution.

Question 78

The FDA (Food and Drug Administration) has been criticized both for holding up
approval of experimental drugs and not requiring adequate testing of new medical
devices.

Question 79

One fundamental factor that caused the major global economic crisis in 2008 was the absence of appropriate, effective regulation of the financial markets.

Question 80

Appellate courts have typically been reluctant to overturn regulatory agency
decisions.