Business Law Chapter 7

8/13/2019 Business Law Chapter 7

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Business Law

Chapter 7Criminal Law


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ObjectivesExplain the difference between crimesand other types of wrongful conduct

Indicate the essential elements ofcriminal liability

Describe the constitutional safeguardsthat protect the rights of personsaccused of crimes


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Objectives

Define the crimes that affect

businessSummarize the defenses to

criminal liability


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Criminal LawCrime

A wrong against society proclaimed in astatute and , if committed, punishable by

society through fines and/or

imprisonment---and, in some cases,

death.

Prosecuted by the state


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Classification of CrimesFelonies

Serious crimes punishable by death or byimprisonment in a federal or statepenitentiary for more than a year

Misdemeanors

Crimes punishable by a fine or byconfinement for up to a year

Local jail


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Criminal Liability

Two elements must exist for

convictionThe performance of a prohibited act

A specified state of mind or intent on

the part of the actor


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Criminal Act

Most crimes require an act of

commission

An act of omissioncan be a crime

when a person has a legal duty to

perform the omitted act.


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Intent to Commit a Crime

A wrongful mental state is as

necessary as a wrongful act inestablishing criminal liability

Varies according to the wrongful

action


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Constitutional Safeguards

Fourth Amendment

Protection from unreasonablesearches and seizures

No warrants for a search or an arrest

can be issued without probable cause


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Constitutional SafeguardsFifth Amendment

No one can be deprived of life,liberty, or property without dueprocess of law.

Prohibition against double jeopardyNo person can be required to be awitness against himself or herself


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Constitutional SafeguardsSixth Amendment

Guarantees of a speedy trial, trial by jury,a public trial, the right to confront

witnesses, and the right to a lawyer

Eighth AmendmentProhibitions against excessive bail and

fines and cruel and unusual punishment


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The Exclusionary RuleAll evidence obtained in violation of

the constitutional rights spelled out inthe Fourth, Fifth, and Sixth

Amendments normally must be

excluded, as well as all evidencederived from the illegally obtained

evidence


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Informing Suspects of RightsIndividuals who are arrested must be

informed of certain constitutionalrights

If not, any statement the suspect makes

will not be admissible in court


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Crimes Affecting BusinessForgery

RobberyLarceny

Embezzlement

Mail and Wire FraudComputer Crime

Bribery


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ForgeryThe fraudulent making or altering of

any writing in a way that changes thelegal rights and liabilities of another

Changing trademarks, falsifying public

records, counterfeiting, and altering alegal document


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Robbery

Forcefully and unlawfully taking

personal property of any valuefrom another

Force or intimidation necessary


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LarcenyThe wrongful taking and carrying

away of another persons personalproperty with the intent to permanently

deprive the owner of the property.

Picking pockets, stealing computerprograms, computer time


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Embezzlement

The fraudulent appropriation of

money or other property by aperson to whom the money or

property has been entrusted.


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Mail and Wire FraudMail Fraud Act of 1990federal crimeto use the mails to defraud the public

Mailing or causing someone else tomail a writing for the purpose ofexecuting a scheme to fraud

A contemplated or an organizedscheme to defraud by false pretenses


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Computer Crime

Any act that is directed against

computers and computer parts, thatuses computers as instruments of

crime, or that involves computers

and constitutes abuse.


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Computer CrimeFinancial crimes

Software piracy

Property theft

Vandalism and destructive programming

Theft of data or services

Detection and Prosecution

Counterfeit Access Device and Computer Fraudand Abuse Act of 1984


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BriberyBribery of Public Officials

Commission occurs when bribe is offered

Commercial Bribery

To obtain proprietary information, cover upinferior product, secure new business(kickbacks, payoffs)

Bribery of Foreign Officials

Foreign Corrupt Practices Act of 1977


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RICOThe Racketeer Influenced and

Corrupt Organizations ActTo curb entry of organized crime

into the legitimate business world


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Racketeering ActivityGambling

ArsonExtortion

Securities fraudMail fraud


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DefensesInfancy

Any person who has not reached the age of

majority

Tried in special courts

If guilty of a felony, usually 14 years of age

Insanity

The person lacked the capacity to appreciate the

wrongfulness of the conduct


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DefensesEntrapment

The defendant claims that he or she was

induced by a public official to commit a crimethat he or she would otherwise not havecommitted.

Immunity

The state can grant immunity from prosecutionor agree to prosecute for a less serious offensein exchange for information.

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