Deck 7: Crime and the Business Community

Question 1

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.

Answer 1

A business sells cigarettes to a minor.

Question 2

Which of the following is the forceful and unlawful taking of personal property?

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

Answer 2

Robbery

Question 3

Under our criminal laws that exist today, white-collar crime is not punishable by imprisonment.

Answer 3

False

Question 4

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 judicta.
D) Stare decisis.
E) Carpe diem.

Question 5

The primary purpose of criminal law is to compensate a victim.

Question 6

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

Question 7

Strict liability is a term used to describe which of the following?

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

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

The majority of the U.S. Supreme Court Berghuis v. Thompkins 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 10

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

Question 11

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

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

Question 12

Mail fraud is a federal crime.

Question 13

Under the common law, a corporation could not be considered a criminal because it was not an actual person and, thus, did not have a mind.

Question 14

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

Question 15

Commission of the offense of grand larceny involves the theft of larger items as opposed to smaller items that can be hidden, for example, in a purse.

Question 16

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

Question 17

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

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

Question 18

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

Question 19

Under current law, corporations cannot be held criminally accountable for strict-liability offenses.

Question 20

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 21

Which of the following occurs when companies bill consumers for optional services that the consumers did not order?

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

Question 22

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 23

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

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

Question 24

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

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

Question 25

In which of the following involves tricking consumers into changing their phone service to another carrier without their consent?

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

Question 26

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 27

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 28

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

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

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

Question 30

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

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

Question 31

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

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

Question 32

Ed goes door-to-door selling magazine subscriptions. Ed 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 33

Which of the following is the making of threats for the purpose of obtaining money or property?

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

Question 34

Which of the following are considered infants under the law in regards to criminal activity?

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

Question 35

Bank teller Ben receives $1,000 from a customer for deposit into the customer's bank account. Instead of placing the money into the customer's account, Ben 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 36

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

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

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

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

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

Question 39

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

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

Question 40

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 41

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 42

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

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

Question 43

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

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

Question 44

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 45

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

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

Question 46

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

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

Question 47

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 48

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

Question 49

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

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

Question 51

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

Question 52

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 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

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 55

Which of the following is true regarding the Fourteenth Amendment?

A) It is part of the Bill of Rights.
B) Its safeguards only apply at the federal level.
C) 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.
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 a part of the Bill of Rights, and its protections apply only at the federal level.

Question 56

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 57

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

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

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 any 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

Which of the following occurs when a defendant makes a first appearance?

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 60

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 61

"Cosmetic profits." Sally is the vice president at Big Name Cosmetics Company. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment.

-Of which of the following, if any, is Sally guilty of by providing information to Alice regarding the purchase?

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 62

"Green Gold." Martin owned a factory in which he manufactured furniture. Martin 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 and by putting the marijuana in drawers, etc. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Martin asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Martin was charged with growing marijuana. Martin refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Martin was declared not guilty because there was no evidence against him. The agent was very angry and arrested Martin immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Martin that he should be tried again because the judge was incorrect. Martin 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 63

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 64

"Cosmetic profits." Sally is the vice president at Big Name Cosmetics Company. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment.

-Of what offense, if any, is Alice guilty of by her method of payment?

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

Question 65

Which of the following was the result in U.S. v. Ruiz, the case in the text involving the defending deputy superintendent of New Mexico's insurance division who was convicted of offenses including mail fraud after he told insurers that they could avoid paying the fines for violation of licensing requirements if they contributed to certain charities?

A) That although the defendant violated certain laws, he did not violate the mail fraud statute because he did not himself mail fraudulent solicitations which is required for the offense of mail fraud.
B) That although the defendant used the mail to provide the illegal option to insurers, that in and of itself was insufficient to establish mail fraud.
C) That because the defendant used the mail to provide the illegal option to insurers, that in and of itself was sufficient to establish mail fraud.
D) That proof that the defendant directed that donations be made directly to charities established the reasonably foreseeable result that the mail would be used which was sufficient evidence to support his conviction.
E) That proof that the defendant directed that donations be made directly to charities established the reasonably foreseeable result that the mail would be used but that such foreseeability was insufficient to support his conviction.

Question 66

Set for the four activities referenced in the text that may constitute a violation of the Racketeer Influenced and Corrupt Organizations Act (RICO).

Question 67

Divorce fallout." Dr. Fred, following a messy divorce, has encountered significant financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred 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. Slick Slim tells Dr. Fred that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Slick says the wristband sells like hotcakes. Slick also tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can sell to his patients. Dr. Fred 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. Fred 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. Fred is able to 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 some criminal prosecution.

-By which of the following acts, if any, did Dr. Fred commit health care fraud?

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

Question 68

"Green Gold." Martin owned a factory in which he manufactured furniture. Martin 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 and by putting the marijuana in drawers, etc. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Martin asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Martin was charged with growing marijuana. Martin refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Martin was declared not guilty because there was no evidence against him. The agent was very angry and arrested Martin immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Martin that he should be tried again because the judge was incorrect. Martin is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.

-Upon which amendment did Martin rely in refusing to testify at trial?

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

Question 69

Divorce fallout." Dr. Fred, following a messy divorce, has encountered significant financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred 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. Slick Slim tells Dr. Fred that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Slick says the wristband sells like hotcakes. Slick also tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can sell to his patients. Dr. Fred 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. Fred 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. Fred is able to 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 some criminal prosecution.

-By mailing correspondence to patients encouraging purchase of the band, which of the following offenses, if any, did Dr. Fred commit?

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

Question 70

Explain the type of conduct generally referenced by the term "criminal fraud" and list the three elements generally involved in establishing criminal fraud.

Question 71

Discuss the four alternative ways, in addition to fines, to punish white-collar criminals discussed in the text. Discuss the pros and cons of each.

Question 72

"Cosmetic profits." Sally is the vice president at Big Name Cosmetics Company. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment.

-Of which of the following offenses, if any, is Alice guilty of by buying stock?

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 73

"Green Gold." Martin owned a factory in which he manufactured furniture. Martin 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 and by putting the marijuana in drawers, etc. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Martin asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Martin was charged with growing marijuana. Martin refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Martin was declared not guilty because there was no evidence against him. The agent was very angry and arrested Martin immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Martin that he should be tried again because the judge was incorrect. Martin is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.

-Upon which of the following defenses would Martin's lawyer rely upon in regards to the second charge after Martin was found not guilty?

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

Question 74

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

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

Question 75

"Cosmetic profits." Sally is the vice president at Big Name Cosmetics Company. She learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment.

-Which offense is Sally guilty of, if any, in purchasing stock of her company?

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

Question 76

List the elements necessary to establish bribery of a public official.

Question 77

List and discuss the three tests discussed in the text used for determining the viability of the insanity defense.

Question 78

Penny, who is the president of XYZ Corporation, tells Andy that buying stock in XYZ Corporation right now is a good idea. Andy is only casually acquainted with Penny and did not know that she was an officer of the corporation. He, however, acting on her information investigated the company somewhat and proceeded to buy some stock. Both Penny and Andy were charged with insider trading. Both Penny and Andy say that they did not know that insider trading was against the law. Also, Andy says that he did not even know that Penny was an officer of XYZ Corporation and that he thought the information at issue was public information. Provide the legal definitions for the defenses asserted and discuss whether they are adequate.

Question 79

Divorce fallout." Dr. Fred, following a messy divorce, has encountered significant financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred 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. Slick Slim tells Dr. Fred that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Slick says the wristband sells like hotcakes. Slick also tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can sell to his patients. Dr. Fred 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. Fred 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. Fred is able to 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 some criminal prosecution.

-Which of the following offenses, if any, did Dr. Fred commit when he used UPS to send correspondence and samples of the bands to patients?

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