Deck 7: Crime and the Business Community

Question 1

Government inspectors may never legally enter a business to conduct an inspection without a warrant.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

The offense of grand larceny is the theft of larger items,rather than smaller items that can be hidden,for example,in a purse.

Answer 3

False

Question 4

Compensating a victim is the primary purpose of criminal law.

Question 5

Which of the following is the term that describes wrongful behavior in a criminal action?

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

Question 6

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

Question 7

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)An adult shoplifts in a department store.
E)A minor shoplifts in a department store.

Question 8

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 9

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

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

Question 10

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 11

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

Question 12

Which of the following is described as strict liability?

A)Actus reus.
B)Negligence.
C)Liability without fault.
D)Recklessness.
E)Intentional wrongdoing.

Question 13

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.

Question 14

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

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

Question 15

A person who is considered an infant under the law cannot be tried as an adult under any circumstances.

Question 16

When insanity is claimed,the test used to establish one's mental state is the same regardless of the jurisdiction involved.

Question 17

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

Question 18

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

Question 19

Mail fraud is a federal crime.

Question 20

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

Question 21

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

Question 22

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

A)Corporate executives may only be held personally liable for a business crime if they benefited personally from their actions in executing the business crime.
B)A corporate executive may never be held personally liable for a business crime.
C)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.
D)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.
E)A court may not assess criminal liability on a corporate executive unless the executive directly engaged in the specific criminal violation.

Question 23

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

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

Question 24

Which of the following includes destruction of a building using an explosive device?

A)Larceny
B)Criminal fraud
C)Arson
D)Extortion
E)Embezzlement

Question 25

Which of the following is a false document or sign of existence used to perpetrate fraud,such as making counterfeit money?

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

Question 26

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

Question 27

Which of the following occurs when someone unlawfully enters a building with the intent to commit a felony?

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

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

Question 33

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

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

Question 34

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

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

Question 35

Making threats for the purpose of obtaining money or property is which of the following?

A)Criminal Fraud
B)Importation
C)Larceny
D)Bribery
E)Extortion

Question 36

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

Question 37

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

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

Question 38

Which of the following are minor offenses usually punishable by a jail sentence of less than six months or a small fine with an example being violation of a building code?

A)Tort offenses.
B)Any business related crime.
C)Felonies.
D)Insignificant offenses.
E)Petty offenses.

Question 39

Less serious crimes punishable by fines or imprisonment of less than one year are which of the following?

A)Misdemeanors.
B)Tort offenses.
C)Any business related crime.
D)Petty offenses.
E)Felonies.

Question 40

When companies bill consumers for optional services that the consumers did not order,it is called which of the following?

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

Question 41

Which of the following is generally a legitimate defense to a charge of a crime?

A)Mistake of actus reus
B)Mistake of felony
C)Vicarious liability
D)Mistake of fact
E)Mistake of law

Question 42

Which of the following requires a "pattern"?

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

Question 43

Which of the following is true regarding the Fourteenth Amendment?

A)It is not a part of the Bill of Rights and it extends federal guarantee of due process and most constitutional protections to all states.
B)It is a part of the Bill of Rights,and its protections apply only at the federal level.
C)Its safeguards only apply at the federal level.
D)It is a part of the Bill of Rights,its protections apply at the federal level,and its protections also apply at the state level.
E)It is part of the Bill of Rights.

Question 44

Persons in which of the following groups are considered infants under the law in regards to criminal activity?

A)Any person under the age of majority.
B)Any child sixteen and under.
C)Any child twelve and under.
D)Any child ten and under.
E)Any child five and under.

Question 45

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

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

Question 46

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

Question 47

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 Sixth Amendment.
B)It is specifically set forth in the Fifth Amendment.
C)It is specifically set forth in the Fourth 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 48

Which of the following was created specifically to combat white-collar crime?

A)The False Claims Act.
B)The Sarbanes-Oxley Act.
C)RICO.
D)Section 1983.
E)Section 1984.

Question 49

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

A)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.
B)A law enforcement agent can arrest a suspect without a warrant only if a felony is involved.
C)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.
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 50

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

Question 51

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

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

Question 52

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)4
C)3
D)6
E)5

Question 53

Which of the following is a plea in which the defendant does not admit guilt but agrees not to contest the charges?

A)Plea avoidance.
B)Sine qua non.
C)Nolo contendere.
D)Petit defense.
E)Information.

Question 54

Which amendment provides the right to a speedy and public trial?

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

Question 55

Ordinarily,a law enforcement agent must demonstrate that there is that a suspect committed or is planning to commit a crime in order to obtain an arrest warrant.

A)Probable cause
B)Likely cause
C)Suspected cause
D)Certainty
E)Information

Question 56

Assuming the requisite elements are proven,which of the following is a defense when it is established that a crime is committed because the person committing the act was threatened with immediate bodily harm or loss of life unless the offense was committed?

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

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

Question 58

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 Adam Rule.
C)The Fourth Amendment Rule.
D)The Eden Rule.
E)The Eve Rule.

Question 59

A judge reports that a jury was "hung".What does the judge mean?

A)That the jury could not reach a verdict.
B)That the jury had waited an excessive amount of time before retiring for the evening.
C)That the jury wanted to hang the prosecutor for unjustly charging the defendant.
D)That the jury wanted to hang the defendant by imposing a heavy sentence.
E)That the jury had waited an excessive amount of time before reaching a verdict.

Question 60

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

Question 61

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 of negligence.
B)The court refused to dismiss claims against him because of insufficient proof of delegation.
C)The court dismissed all claims against him because of insufficient proof that he had actively allowed contamination.
D)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.
E)The court refused to dismiss claims against him because the offense was a strict liability offense.

Question 62

Carla learns that her employer,a healthcare facility,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 Sarbanes-Oxley Act of 2002.
B)The False Claims Act.
C)The Medicare Recovery Act.
D)The Healthcare Fraud Act.
E)RICO.

Question 63

Which of the following Supreme Court cases established the right to counsel before questioning by the police?

A)Whaley v.Reeves
B)U)S.v.Parks
C)Glover v.Smith
D)U)S.v.Glover
E)Miranda v.Arizona

Question 64

In refusing to testify at trial,Miles relied upon which amendment?

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

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

Question 66

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

Question 67

After Miles was found not guilty,which of the following defenses would Miles' lawyer rely upon in regards to the second charge?

A)The Fifth defense
B)The Eighth Amendment
C)The Sixth Amendment
D)The defense of double jeopardy
E)The Single Trial defense

Question 68

By buying stock,Claire is guilty of which offense,if any?

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

Question 69

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)Mail fraud
D)Defalcation
E)He is not guilty of any offense

Question 70

When do mailings sent to facilitate concealment of a fraudulent scheme - to avoid detection,prosecution or conviction - fall within the federal mail fraud statute?

A)As long as the mailings are sent via U.S.mail,it is irrelevant when they are sent.
B)When they are sent before the scheme is completed.
C)As long as the mailings are sent via U.S.mail,UPS or FedEx,it is irrelevant when they are sent.
D)When they are sent after the scheme is completed.
E)When they are sent in conjunction with the scheme.

Question 71

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

Question 72

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

Question 73

By her method of payment,Claire is guilty of which offense?

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

Question 74

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

Question 75

Which of the following was passed largely in response to business scandals of the early 2000's,such as those implicated by Enron,WorldCom,Global Crossing,and Arthur Anderson?

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

Question 76

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

Question 77

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

Question 78

A crime can be a felony,misdemeanor,or petty offense.How is this determination usually made?

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

Question 79

By which of Dr.Eli's actions,if any,did he commit health care fraud?

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

Question 80

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