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Flashcards in Ch 13 Deck (75)
0

Sherman antitrust act 1890

Made price fixing illegal

1

Civil law

Allows individuals to bring actions for damages

2

Criminal law

Allows society to punish wrongdoers

3

White collar crime

Applies to criminals of high socioeconomic status

Ex. Corporate executives who commit fraud

4

What are white collar crimes not dependent on?


2) what is the goal of the crime?

Not dependent on threat of physical force or violence

2) goal: obtain resources, services, avoid payment or loss for
Personal or business advantage

5

Common examples of white collar crime

Embezzling money, making electronic advances to fictitious
Employees,
accepting kickbacks from suppliers in exchange
For orders, rigging bids, selling trade secrets, falsifying
Inventories to conceal theft, paying false invoices

6

Penalties for white collar crimes

Jail time for guilty parties, fines paid by company

7

Crime classification: felony

Felonies punishable by fine or imprisonment for period
Of 1 year or more

8

Classifications of crime: Misdemeanors

Punishable by fine or jail sentence of less than 1 year

9

Grand jury Indictment

Felony cases are commenced by grand jury indictment

10

Charge: information

Misdemeanor cases are commenced when government
Files charge called an information

11

Grand juries vs. Petit juries

Grand juries determine there is sufficient evidence to warrant
Trial (investigatory role)

Petit Jury determines guilt or innocence of accused

12

Intent

Important element of criminal laws

13

What 2 terms may be used to define criminal intent?

1 willfully

2 knowingly

14

Willfully

Act is committed voluntarily and purposefully with specific
Intent to do something

15

When does a person not act willfully?

If there's good faith misunderstanding of requirements
Of law

16

Knowingly

Voluntary and intentional, not because of mistake or accident

17

In criminal case what 3 possible pleas can a defendant enter

1 guilty
2 not guilty
3 nolo contendere

18

Nolo contendere

Equivalent of pleading guilty but avoiding costs of trial

19

Fifth Amendement of US Constitution

Before anyone can be tried for capital or infamous crime
There must be presentment or indictment by grand jury

20

What does the 5th Ammendment protection prevent

Political trials and unjustified prosecutions by placing group
Of citizens btw prosecutors and persons accused of crimes

21

Probable cause

Determination where majority of grand jury must find crime
Has been committed

and evidence is sufficient to warrant the accused's standing
Trial

22

Presumption of innocence

Presumed innocent until found guilty by petit jury

What an indicted person is entitled too

23

Civil liberties

Rights protect individuals from power of government
including individuals accused of crimes

24

The Bill of Rights protects businesses from...

Excessive regulation

25

Fourth Ammendment protection of: unreasonable searches and seizures by government

Primarily protects persons from unwarranted intrusions
On their privacy

Requires police to obtain search warrant

26

Search warrant, general rule

Court order, where police offer evidence crime has been
Committed to obtain and it will assist investigation

Must be obtained by police prior to search of person,
Any premises or property (such as trunk of automobile

27

Businesses that don't have expectation of privacy, examples

Nursing homes that receive Medicaid funds have voluntarily
Consented to warrantless searches

Also searches at airports

28

Fourth Ammendment: drug testing

Not protected by fourth amendment in most work places

29

Fifth Ammendment: protection against incrimination

Protects accused from being compelled to testify against
Himself or herself

By invoking their Miranda Rights

30

Fifth Ammendment: corporations and professional partnerships

2) what business is protected under the fifth amendment privilege against compulsory self incrimination

These entities have no 5th Ammendment right to refuse to
Submit their books and records in response to subpoena

2) sole proprietorship

31

5th Ammendment: double jeopardy

Courts don't allow individuals to be tried twice by same governmental entity for same crime based on same factual
Situation

32

6 protections provided by the 6th Ammendment, right to:

1 speedy and public trial
2 trial by jury
3 be informed of charge against you
4 confront your accuser
5 subpoena witnesses in your favor
6 have assistance of an attorney

33

The right to an attorney exists in any cases where...

Incarceration is a possible punishment

34

What Fraud can lead to?

Can be a defense to a contract

Can also form basis for civil tort action , can also create
Criminal liability

35

When is fraud committed?

Knowingly/willfully falsifies, conceals or covers up any
Trick, scheme or device

Makes any false statements, false documents or writing

36

Penalties for fraud

Fines and imprisonment

37

A prosecutor must establish presence of: scheme to defraud

Plan or program designed to take from a person, the
Tangible right of honest services

38

Common fraud schemes 6

1 telemarketing fraud
2 advance fee scheme
3 Nigerian letter 419 fraud
4 impersonation/identity fraud
5 ponzi schemes

39

Advance fee scheme

Victim pays money to someone in anticipation of more
money

40

Telemarketing fraud

Giving personal info over phone

41

Impersonation/identity fraud

Occurs when Simone assumes your identity to perform
Fraud or other criminal act

42

Mail and wire frauds penalties

Up to $1,000,000 and 30 years in prison

43

Mail fraud

Use of US postal service

44

Wire fraud

Ue of radio, television, telephone, Internet

45

Intent to defraud

Act knowingly and with specific intent to deceive someone

Cause victim financial loss, for personal gain

46

Good faith

Complete defense: defendant did not have intent to defraud

47

Securities exchange act. 1934 by SEC

Covers fraud on purchase or sale of security
And accounting fraud of financial statements

48

Common examples of healthcare fraud

1 billing for services not actually performed
2 falsifying patient diagnosis to have unnecessary tests and
Surgery performed
3 unfolding billing to perform more costly procedure
4 unbundling billing like each stage of procedure is separate
Procedure
5 accepting kickbacks for patient referrals
6 billing patient more than copay plan for services paid in
Full by benefit plan

49

Counterfeiting

Federal law outlaws use of stolen back cards, plates,
account #s, fund transfers and credit cards

50

Bankruptcy crimes

When debtor falsifies information filed in bankruptcy
proceedings (conceals property) it's a felony

Also crime to present false claim in bankruptcy proceeding

51

Conspiracy

Agreement (kind of partnership) for criminal purposes
Where each member becomes agent or partner of every
Other member

Members plan all details of scheme

52

What 4 pieces of evidence must be shown beyond a reasonable doubt, to convict parties of conspiracy

1) 2 or more persons came to mutual understanding to try
To accomplish unlawful plan
2)defendant willfully became member of such conspiracy
3 during existence of conspiracy, at least 1 of the members
Committed at least 1 overt acts described in the indictment
4 overt act was knowingly committed in effort to carry out
Or accomplish some object of conspiracy

53

Overt act

Any transaction or event knowingly committed by
conspirator In effort to accomplish object of conspiracy

54

Obstruction of justice

Occurs when individual commits act with intent to obstruct
Legislative process or judicial process

55

False statement to federal agency, what's the penalty

Federal crime for anyone willfully and knowingly to make
False statement to a department or agency of the US

Max penalty $10,000 and 5 years in prison

56

Exculpatory no exception

Narrow exception protected an individual from prosecution
For making false statement when person's statement denies
Criminal wrong doing

57

Larceny

Unlawful taking of personal property with intent to deprive
Rightful owner permanently (theft)

Ex. Shoplifting, company buys luxury items yachts, seasontickets for personal use of executives

58

Robbery

Larceny done with violence or threat such as a gun

59

Burglary

Breaking into building with intent to commit felony

60

Embezzlement

Occurs when person entrusted with another's money or
Property fraudulently appropriates it

61

Money laundering

Falsely reporting income that is obtained through criminal
"dirty" activity as income obtained through legitimate "clean"
Business enterprise

62

Racketeer Influenced and Corrupt Organizations Act (RICO)

Law imposes civil and criminal liability upon business
Persons who engage in certain prohibited activities

And who engage in interstate commerce

Ex. Acts or threats involving murder, kidnapping, robbery, bribery, extortion, dealing in obscene manner, controlled substances, counterfeiting, fraud, obstruction of justice, tampering with witnesses or evidence, prostituting, trafficking, loan sharking

63

Racketeer Influenced and Corrupt Organizations Act (RICO): specifically liability extends to any person who (3 things)

1 uses/invests income from prohibited activities to acquire
An interest in or operate enterprise
2 acquires or maintains an interest in or control of enterprise
3 conducts or participates in conduct of enterprise while
Being employed or associated with it

64

Pattern of racketeering

Activity or the collection of an unlawful debt

Requires at least 2 acts of racketeering activity within 2
Year period

65

Racketeering

Act or threat involving specified state law crimes, or act
Indictable under various federal statutes + certain fedl offenses

66

Racketeer Influenced and Corrupt Organizations Act (RICO) penalties

Large, compensation triples

67

Cyber crime: over Internet 4 examples

1 identity theft
2 unauthorized access
3 employees issuing corporate stock to themselves
4 stolen trade secrets and personal records

68

Reckless endangerment of workers charge

2) occupational safety and health administration

Occurs if worker is injured or accidental homicide (killed
On job)

2) can bring on actions if Worker is exposed to unsafe
standards (chemicals)

69

Aiding and abetting

When person acts under direction if someone accused of
Criminal activities they are held responsible

70

Accessory

State level charge equivalent to aiding and abetting (which is federal)

71

If a person is accused of being involved after the crime
Is committed, the charge is...

Accessory after the fact

Ex. Someone who helps perpetrator elude police

72

Kickbacks

Payments made to person who has facilitated transaction

Ex. Building contractor giving money back to government
Official in exchange for building contract

73

Sentencing guidelines

Rules for federal decisions of judges published in the late
80's initially were mandatory for judges to follow when
Making decisions

They are currently not mandatory

74

Companies put on probation

Can't sell stock or pay dividends