Deck 12: Business and Corporate Crimes

Question 1

False advertising was not a crime under the common law because the consumer was expected to know that advertisers may exaggerate or even lie about their product; this is called.

A) phishing
B) puffery
C) spiffing
D) ballooning

Answer 1

B

Question 2

This is when someone's relationship to another is such that one person should have the other's interests in the forefront of their decision-making without any conflict with any other interest:

A) caveat emptor
B) fiduciary responsibility
C) puffery
D) respondeat superior

Answer 2

B

Question 3

This is giving or offering to give (or taking) anything of value, to (or received by) a private agent, employee, or fiduciary, with intent to influence the fiduciary's actions:

A) commercial bribery
B) false advertising
C) tax evasion
D) money laundering

Answer 3

A

Question 4

Anti-structuring laws have to do with.

A) Building poorly constructed homes
B) Setting up false checking accounts
C) Dividing up banking transactions to avoid reporting requirements
D) Creating a network of banks to engage in money-laundering

Question 5

Breaking into computer systems with malevolent or innocuous motives is:

A) phishing
B) tax evasion
C) money laundering
D) hacking

Question 6

Using seemingly innocent emails to get the user to open an attachment that will install malware is called phishing.

A) phishing
B) hacking
C) trawling
D) spam

Question 7

The EPA is tasked with protecting all of the following except.

A) Clean air
B) Clean water
C) Appropriate disposal of toxic waste
D) Appropriate development of potentially toxic substances

Question 8

These laws prevent acts that take away the freedom of purchasers to buy in the open market and to maintain freedom of competition.

A) money laundering
B) insider trading
C) false advertising
D) antitrust laws

Question 9

Corporations can be held criminally liable when the following can be proved except:

A) When illegal practice was written into policy
B) When illegal practice was approved by directors
C) When illegal practice was conducted by director or top official as part of his/her duties
D) When illegal practice resulted in major profit to corporation

Question 10

This is to publish; false or misleading statements; about a product or service; to encourage the sale of the product:

A) money laundering
B) tax evasion
C) false advertising
D) corporate bribery

Question 11

This act imposes penalties on those who knowingly violate federal or state regulations designed to achieve ambient air quality standards established by the U.S. Environmental Protection Agency (EPA).

A) Environmental Protection of Air Act
B) Fresh Breathing Air Act
C) Safe Drinking Water Act
D) The Clean Air Act

Question 12

This government agency monitors and enforces the levels of harmful contaminants in public water systems and the underground injection of contaminants into ground water that supplies public drinking water:

A) EPA
B) FDA
C) SEC
D) CWA

Question 13

The purpose of this act is to prevent toxic substances in commerce from presenting an "unreasonable risk of injury to health or the environment," and to stem the tide of chemical substances and mixtures considered "imminent hazards":

A) Toxic Clean Up Control Act
B) Toxic Substance Control Act
C) Toxic Water Act
D) Toxic Free Environment Act

Question 14

Ponzi schemes are:

A) pyramid schemes
B) the practice of avoiding hazardous waste clean-up
C) phishing schemes
D) a violation of anti-structuring laws

Question 15

The federal agency that regulates securities trading is the ______.

A) FDA
B) TVA
C) EPA
D) SEC

Question 16

The FDA is the federal agency that protects consumers from unsafe and adulterated food or drugs.

Question 17

Whistle-blower protection makes it lawful for an employer to discharge or discriminate against an employee due to the employee's filing of an FLSA complaint.

Question 18

The Fair Labor Standards Act (FLSA) prohibits an employer from failing to pay minimum wages or overtime compensation to an employee, failing to keep work records for each employee, discriminating on the basis of sex by paying different wages for equal work, or using oppressive child labor.

Question 19

OSHA includes a general duty clause that requires employers to furnish their employees with a working environment free from recognized hazards.

Question 20

Insider trading is illegal unless the person does so based on insider information not available to the general public.