Deck 6: White-Collar Crime and the Business Community

Question 1

Punishment for regulatory crimes is generally ________.

A)more severe than the punishment for crimes that require mens rea
B)less severe than the punishment for crimes that require mens rea
C)the same as punishment for crimes that require mens rea
D)more severe than the punishment for strict liability crimes

Answer 1

B

Question 2

What crimes do not require mens rea?

A)felonies
B)strict liability crimes
C)street crimes
D)petty crimes

Answer 2

B

Question 3

The result of a(n) ________ process is that the defendant pleads guilty to a lesser offense, in exchange for which the prosecutor drops or reduces some of the initial charges.

A)indictment
B)nolo contendere
C)plea bargaining
D)arraignment

Answer 3

C

Question 4

Which of the following refers to the filing of criminal charges against the defendant?

A)arraignment
B)bail
C)felony
D)booking

Question 5

________ are created when the legislature decides that the need to protect the public outweighs the traditional requirement of mens rea.

A)Regulatory crimes
B)Felonies
C)Misdemeanors
D)White-collar crimes

Question 6

________ is an affirmative defense claiming that the idea for the crime did not originate with the defendant but was put into the defendant's mind by a police officer or other government official.

A)Duress
B)Insanity
C)Entrapment
D)Mistake-of-fact

Question 7

Rupert is charged with stealing an expensive watch set from a hypermarket. If, however, he says that he was forced to do so at gunpoint, he is claiming the affirmative defense of ________.

A)mistake-of-fact
B)entrapment
C)insanity
D)duress

Question 8

The duty of a grand jury is to ________.

A)decide if there is enough evidence to justify bringing a defendant to trial
B)decide if the defendant is guilty beyond a reasonable doubt
C)make a finding of guilt
D)determine the sentence to be imposed in misdemeanor cases

Question 9

A(n) ________ takes place when the defendant appears in court and enters a plea of guilty or not guilty.

A)plea bargaining
B)arraignment
C)booking
D)nolo contendere

Question 10

Which of the following crimes involves engaging in war against the country or giving aid or comfort to its enemies?

A)arraignment
B)misdemeanor
C)felony
D)treason

Question 11

Entrapment is an affirmative defense claiming that ________.

A)the defendant's mental condition precluded him or her from understanding the wrongful nature of the act committed or from distinguishing wrong from right in general
B)the idea for the crime did not originate with the defendant but was put into the defendant's mind by a police officer or other government official
C)the defendant was forced to commit the wrongful act by threat of immediate bodily harm or loss of life
D)a mistake made by the defendant vitiates criminal intent

Question 12

Petty crimes are considered a subcategory of ________.

A)treasons
B)misdemeanors
C)felonies
D)strict liability crimes

Question 13

A magistrate allows the release of a defendant without the posting of bail if ________.

A)the defendant does not have enough money to post bail
B)the defendant has sufficient ties to the community
C)the defendant displays remorse
D)the defendant has no prior offenses

Question 14

Which of the following is true of pretrial diversion (PTD)?

A)The participant agrees to be supervised by the U.S. Probation Office.
B)The participant signs an agreement with the government admitting guilt.
C)The participant is necessarily prosecuted.
D)It entitles the participant to a trial before a petit jury.

Question 15

Misdemeanors are punishable by ________.

A)death
B)imprisonment of less than a year in a local jail
C)imprisonment in a penitentiary
D)imprisonment of at least five years

Question 16

Booking refers to ________.

A)seizure and holding under the authority of the law
B)the filing of criminal charges against the defendant
C)appearance of the defendant before a magistrate
D)a formal written accusation in a misdemeanor case

Question 17

Which of the following is true of misdemeanor cases?

A)They do not require mens rea.
B)The prosecutor presents the facts to a magistrate and an information is issued.
C)The prosecutor presents the facts of the crime to a grand jury.
D)They are punishable by imprisonment of more than two years.

Question 18

Criminal cases typically begin with ________.

A)the arraignment process
B)the prosecutor's issuance of Miranda rights
C)the defendant's first appearance before a magistrate
D)the arrest of the defendant

Question 19

Which of the following refers to an amount of money paid to the court to ensure that the defendant will return for trial?

A)surety
B)bail
C)bond
D)booking

Question 20

An arrest warrant is issued by a ________.

A)bailiff
B)magistrate
C)police sergeant or captain
D)detective

Question 21

Which of the following led to the adoption of the 1991 Sentencing Guidelines for use by federal judges?

A)a public perception that judges were not giving long enough sentences to white-collar criminals and were not imposing large enough fines
B)a public perception that corporate executives were unfairly prejudicing the jury
C)a public perception that judges were giving unfairly lengthy sentences to white-collar criminals and were imposing fines that were too large
D)a public perception that judges were not considering all relevant facts in the conviction of a corporate executive

Question 22

Hayako, a successful author, lived in a remote village and had entrusted his agent with the management of his business affairs. Many years later, it came to light that the agent took over copyright ownership for many of Hayako's works and, as a result, made a profit of many millions of dollars. In this instance, the agent has committed the crime of ________.

A)embezzlement
B)bribery
C)forgery
D)false entry

Question 23

Which of the following is true of the differences between worms and viruses?

A)Worms attach themselves to the operating system of a computer, whereas viruses do not.
B)Viruses attach themselves to the operating system of a computer, whereas worms do not.
C)The software programs designed to detect viruses are reactive, whereas those designed to detect worms are proactive.
D)The software programs designed to detect worms are reactive, whereas those designed to detect viruses are proactive.

Question 24

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 is known as ________.

A)larceny
B)embezzlement
C)defalcation
D)bribery

Question 25

Under the 1991 Sentencing Guidelines, the ________ is the greatest of the company's gain, the victim's loss, or a dollar amount corresponding to an offense level.

A)total fine
B)base fine
C)culpability score
D)nolo contendere

Question 26

When Lucine, a health department inspector, comes to inspect Jason's new restaurant, Jason offers her a certain sum of money to limit her inspection to the serving area. In doing so, Jason is committing the crime of ________.

A)larceny
B)criminal fraud
C)embezzlement
D)bribery

Question 27

Which of the following terms refers to the misappropriation of trust funds or money held in a fiduciary capacity?

A)forgery
B)false pretense
C)defalcation
D)false token

Question 28

Which of the following statements is true of the culpability score?

A)It is the greatest of the company's gain, the victim's loss, or a dollar amount corresponding to an offense level.
B)It is the final amount that the corporation has to pay as fine.
C)It is not used to determine sentences for white-collar offenses.
D)It is determined by looking at a chart of potential mitigating and aggravating factors.

Question 29

Elaine, a dealer in antique furniture, falsifies the age of a wooden cabinet when selling it to a customer and, in the process, charges him more than twice its actual price. In this example, what fraudulent act has Elaine committed?

A)forgery
B)defalcation
C)false token
D)false pretenses

Question 30

A private university provides scholarships to students who are immigrants from certain countries. If Sam, a local resident, alters his documents to make it look like he belongs to one of these countries, what form of fraud has he committed?

A)defalcation
B)false entry
C)false token
D)bribery

Question 31

Which of the following statements is true of white-collar crimes?

A)Businesspersons who get caught automatically lose their status among their peers.
B)Corporate crime is facilitated because the adversarial relationship between the corporation and the government agency "watchdog" is very strong.
C)A corporation's personnel and operating procedures strongly discourage its employees from committing these crimes.
D)Decision making is often distributed among various individuals, which makes these crimes easy to commit.

Question 32

Which of the following statements best defines the term embezzlement?

A)It 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.
B)It is the intentional use of some sort of misrepresentation to gain an advantage over another person.
C)It is the wrongful conversion of the property of another by one who is lawfully in possession of that property.
D)It is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing a person's action.

Question 33

Which of the following terms refers to a crime where the victim is the corporation that the criminal works for?

A)strict liability crime
B)embezzlement
C)interbusiness crime
D)intrabusiness crime

Question 34

Charlene handles finance and accounts at a technology start-up. She falsifies certain records so that the company's assets will appear greater and thereby improve its chances of obtaining a loan. What crime has Charlene committed?

A)larceny
B)false entries
C)false tokens
D)forgery

Question 35

Which of the following statements is true of larceny?

A)It is carried out by means of false representation.
B)It is carried out by means of fear or force.
C)It is carried out by means of stealth.
D)It is commonly called theft by persons with legal training.

Question 36

A ________ is a program that travels from one computer to another but does not attach itself to the operating system of the computer it infects.

A)worm
B)virus
C)Trojan horse
D)bot

Question 37

Which of the following best defines false pretenses?

A)It is the material altering of anything in writing that, if genuine, might be the foundation of a legal liability.
B)It is a designed misrepresentation of existing facts or conditions by which a person obtains another's money or goods.
C)It 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.
D)It is the suppression of a material fact that the person is legally bound to disclose.

Question 38

Which of the following is an example of embezzlement?

A)A pharmaceutical company markets a drug which contains untested compounds.
B)A storeowner hands money to a criminal at gunpoint.
C)A cashier takes a small amount of money from the cash register each day.
D)An art dealer quotes a highly inflated price to unsuspecting buyers.

Question 39

________ is the material altering of anything in writing that, if genuine, might be the foundation of a legal liability.

A)Forgery
B)Defalcation
C)False entry
D)Larceny

Question 40

The term "blue-sky laws" refer to ________.

A)state securities regulations
B)federal securities regulations
C)national securities regulations
D)international securities regulations

Question 41

Punishment for the violation of the mens rea requirement is generally more severe than it is for wrongful behavior.

Question 42

Which of the following is a remedy for ineffective monitoring by agencies?

A)replacing federal chartering of corporations with state chartering
B)encouraging greater use of the nolo contendere plea
C)eliminating the imposition of equity fines
D)increasing the operating budgets of regulatory agencies

Question 43

If the magistrate believes that the defendant has sufficient "ties to the community," the defendant may be released without posting bail.

Question 44

Under the ________, a successful party may receive 25 percent of the amount recovered if the government chooses to intervene in the action, or 30 percent if the government does not participate in the suit.

A)False Claims Act
B)Sarbanes-Oxley Act
C)Whistleblower Protection Act
D)Homeland Security Act

Question 45

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

A)It offers protection to federal employees who report illegal governmental activities.
B)It seeks to eliminate the conflicts of interest that can lead to fraudulent activity.
C)It prohibits persons employed by or associated with an enterprise from engaging in racketeering activity.
D)It lets private citizens sue employers on behalf of the government for fraud against the government.

Question 46

If the defendant is not informed of his or her legal rights at the time of the arrest, any statements the defendant makes at the time of the arrest will be inadmissible at the defendant's trial.

Question 47

Which of the following statements is true of the False Claims Act?

A)Private citizens may sue employers on behalf of the government for fraud against the government.
B)Private citizens may sue employers on behalf of the government for misrepresentation of a government employee.
C)The government may sue employers for fraud against a private citizen.
D)The government may sue employers for fraud against a government official.

Question 48

The grand jury has the power to subpoena witnesses.

Question 49

Plea bargaining benefits a criminal by eliminating the risk of a greater penalty.

Question 50

Karen, an employee at a large multinational organization, learnt that the palm oil being imported by her company was resulting in large amounts of illegal deforestation. If Karen decides to blow the whistle on the organization and go public with this information, she will be protected from being fired, demoted, or otherwise discriminated against at the workplace by the provisions in the ________.

A)Glass-Steagall Act
B)Racketeer Influenced and Corrupt Organizations Act
C)False Claims Act
D)Sarbanes-Oxley Act

Question 51

For the past six months, Julia has been using her video arcade as a front to operate a series of illegal gambling operations. She stays out of trouble by paying local law enforcement officials a certain amount of money every week. Julia is violating the ________.

A)Racketeer Influenced and Corrupt Organizations Act
B)Sarbanes-Oxley Act
C)False Claims Act
D)Homeland Security Act

Question 52

Under the ________, private citizens can sue employers on behalf of the government for fraud against the government.

A)Sarbanes-Oxley Act
B)Racketeer Influenced and Corrupt Organizations Act
C)False Claims Act
D)Whistleblower Protection Act

Question 53

The Convention on Cybercrime paved the way for international rules governing ________.

A)corporate liability
B)copyright infringement
C)the protection of free speech
D)Internet advertising

Question 54

A pretrial diversion (PTD) participant signs an agreement with the government admitting guilt.

Question 55

As opposed to civil trials, a defendant in a criminal case can be compelled to testify.

Question 56

Which of the following statements is true of equity fines?

A)The corporation is fined in a manner in that is considered just and fair to shareholders.
B)The fine is determined in accordance with criminal sentencing guidelines issued by a court of equity.
C)The corporation pays the fine in the form of stock to a victim's compensation fund.
D)The fine absolves corporate managers of all responsibility.

Question 57

A grand jury makes a finding of guilt but does not decide whether there is enough evidence that the defendant committed the crime to justify bringing the defendant to trial.

Question 58

Misdemeanors are considered a subcategory of petty crimes.

Question 59

Which of the following is a characteristic of the Sarbanes-Oxley Act of 2002?

A)It offers protection to employees who act as whistleblowers.
B)It allows any person to recover treble damages plus attorney's fees in a civil action.
C)It prohibits persons employed by or associated with an enterprise from engaging in white-collar crimes or acts of violence.
D)It offers protection to federal employees who report illegal governmental activities.

Question 60

The magistrate determines whether there was probable cause for the arrest at the time of booking.

Question 61

Defalcation is the material altering of anything in writing that, if genuine, might be the foundation of a legal liability.

Question 62

What are the arguments for and against the extensive use of the Racketeer Influenced and Corrupt Organizations Act (RICO)?

Question 63

Why is it difficult to impose liability on corporate executives?

Question 64

An argument in support of corporate liability is the fact that corporate personnel are expendable.

Question 65

Under the 1991 Sentencing Guidelines, what factors affect the fine that the company has to pay?

Question 66

Compare and contrast the Sarbanes-Oxley Act and the Whistleblower Protection Act.

Question 67

What are the arguments against imposing liability on corporations?

Question 68

Strict liability offenses are those for which no state of mind is required.

Question 69

Federal employees in the postal service are protected by the Whistleblower Protection Act.

Question 70

What effect did the erosion of the mens rea requirement have on corporate liability?

Question 71

Larceny is carried out by means of fear, force, or false representation.

Question 72

Duress occurs when the idea for the crime did not originate with the defendant but was put into the defendant's mind by a police officer or other government official.

Question 73

Describe the affirmative defense of entrapment and explain why it is not always easy to prove.

Question 74

Under the 1991 Sentencing Guidelines, the culpability score is the greatest of the company's gain, the victim's loss, or a dollar amount corresponding to an offense level.

Question 75

The Sarbanes-Oxley Act of 2002 holds high-ranking corporate officials responsible for the validity and accuracy of their companies' financial statements.

Question 76

Under the False Claims Act, private citizens may sue employers on behalf of the government for fraud against the government.

Question 77

A nolo contendere plea can be used against the defendant in a civil suit.