1. CHAPTER 8 CRIMES AND BUSINESS DAVIDSON, KNOWLES & FORSYTHE Business Law: Cases and Principles in the Legal Environment (8 th Ed.)

2. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 2 WHY STUDY CRIMINAL LAW? Businesses are constantly confronted with the effect of crimes. Businesses are constantly confronted with the effect of crimes. Businesses and officers can be charged with a number of crimes. Businesses and officers can be charged with a number of crimes. Know what constitutes a crime and its legal ramifications. Know what constitutes a crime and its legal ramifications.

3. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 3 OBJECTIVES OF CRIMINAL LAW Protection of Persons and Property. Protection of Persons and Property. Deterrence of Criminal Behavior. Deterrence of Criminal Behavior. Punishment of Criminal Behavior. Punishment of Criminal Behavior. Rehabilitation of the Criminal. Rehabilitation of the Criminal. Protection of Persons and Property. Protection of Persons and Property. Deterrence of Criminal Behavior. Deterrence of Criminal Behavior. Punishment of Criminal Behavior. Punishment of Criminal Behavior. Rehabilitation of the Criminal. Rehabilitation of the Criminal.

4. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 4 COMPONENTS OF CRIMINAL RESPONSIBILITIES Individual is presumed innocent until proven guilty. Individual is presumed innocent until proven guilty. Suspect is guilty beyond a reasonable doubt. Suspect is guilty beyond a reasonable doubt. The Act: The Act: – Criminal liability only when act is prohibited by law. – Prohibited act must be voluntarily committed. – Failure to act can also be a criminal “action”. Individual is presumed innocent until proven guilty. Individual is presumed innocent until proven guilty. Suspect is guilty beyond a reasonable doubt. Suspect is guilty beyond a reasonable doubt. The Act: The Act: – Criminal liability only when act is prohibited by law. – Prohibited act must be voluntarily committed. – Failure to act can also be a criminal “action”.

5. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 5 COMPONENTS OF CRIMINAL RESPONSIBILITIES Mental State: Mental State: – Purpose: actor acts with conscious objective to commit the prohibited act. – Knowledge: actor acts with awareness of what person is doing. – Recklessness: actor acts with disregard for substantial and unjustifiable risk of criminal harm to others. – Negligence: actor acts in a criminal negligent manner. – Strict liability: actor held strict liable if law declares act criminal even if none of the above elements are present. Mental State: Mental State: – Purpose: actor acts with conscious objective to commit the prohibited act. – Knowledge: actor acts with awareness of what person is doing. – Recklessness: actor acts with disregard for substantial and unjustifiable risk of criminal harm to others. – Negligence: actor acts in a criminal negligent manner. – Strict liability: actor held strict liable if law declares act criminal even if none of the above elements are present.

6. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 6 SERIOUSNESS OF THE OFFENSE Infractions or Violations: petty offenses punishable only be fines. Infractions or Violations: petty offenses punishable only be fines. Misdemeanors: minor offenses punishable by fines and/or jail up to one year. Misdemeanors: minor offenses punishable by fines and/or jail up to one year. Felonies: major offenses punishable by major fines and/or jail from one year to life. Felonies: major offenses punishable by major fines and/or jail from one year to life. Treason: waging war against the government or giving aid and comfort to enemies in time of war. Treason: waging war against the government or giving aid and comfort to enemies in time of war. Infractions or Violations: petty offenses punishable only be fines. Infractions or Violations: petty offenses punishable only be fines. Misdemeanors: minor offenses punishable by fines and/or jail up to one year. Misdemeanors: minor offenses punishable by fines and/or jail up to one year. Felonies: major offenses punishable by major fines and/or jail from one year to life. Felonies: major offenses punishable by major fines and/or jail from one year to life. Treason: waging war against the government or giving aid and comfort to enemies in time of war. Treason: waging war against the government or giving aid and comfort to enemies in time of war.

7. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 7 CRIMES versus TORTS An illegal act can be the legal basis for both criminal lawsuit and civil lawsuit. An illegal act can be the legal basis for both criminal lawsuit and civil lawsuit. Two separate suits not barred by res judicata, nor by the rule against double jeopardy. Two separate suits not barred by res judicata, nor by the rule against double jeopardy. An illegal act can be prosecuted by the criminal and civil system. An illegal act can be prosecuted by the criminal and civil system.

8. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 8 SELECTED CRIMES Murder/Manslaughter Murder/Manslaughter Arson Arson Burglary Burglary Embezzlement/Forgery Embezzlement/Forgery Forgery Forgery Credit Card and Check Legislation Credit Card and Check Legislation Identity Theft Identity Theft Criminal Fraud Criminal Fraud Murder/Manslaughter Murder/Manslaughter Arson Arson Burglary Burglary Embezzlement/Forgery Embezzlement/Forgery Forgery Forgery Credit Card and Check Legislation Credit Card and Check Legislation Identity Theft Identity Theft Criminal Fraud Criminal Fraud Larceny Larceny Robbery Robbery Espionage Espionage Computer Crime Computer Crime Corporate Liability for Crimes Corporate Liability for Crimes RICO Act RICO Act Larceny Larceny Robbery Robbery Espionage Espionage Computer Crime Computer Crime Corporate Liability for Crimes Corporate Liability for Crimes RICO Act RICO Act

9. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 9 SELECTED DEFENSES Duress: coerced into criminal act by threat or force. Duress: coerced into criminal act by threat or force. – Immediate threat of death or serious bodily harm. – Well-grounded fear that threat will be applied. – No reasonable opportunity to escape the threat. Insanity: mental disease or defect, the accused did not know the act was wrong. Insanity: mental disease or defect, the accused did not know the act was wrong. Duress: coerced into criminal act by threat or force. Duress: coerced into criminal act by threat or force. – Immediate threat of death or serious bodily harm. – Well-grounded fear that threat will be applied. – No reasonable opportunity to escape the threat. Insanity: mental disease or defect, the accused did not know the act was wrong. Insanity: mental disease or defect, the accused did not know the act was wrong.

10. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 10 SELECTED DEFENSES Intoxication: only under duress unless specific intent required. Intoxication: only under duress unless specific intent required. Justification: person believes an act is necessary to prevent crime. Justification: person believes an act is necessary to prevent crime.

11. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 11 THE LAW OF CRIMINAL PROCEDURE Addresses the judicial process in criminal case. Addresses the judicial process in criminal case. Guarantees due process and equal protection. Guarantees due process and equal protection. Defendant informed of charges. Defendant informed of charges. Tried before an impartial tribunal. Tried before an impartial tribunal. Must be permitted to confront witnesses. Must be permitted to confront witnesses. Cannot be compelled to testify against himself/herself. Cannot be compelled to testify against himself/herself. Defendant entitled to a speedy trial. Defendant entitled to a speedy trial. Addresses the judicial process in criminal case. Addresses the judicial process in criminal case. Guarantees due process and equal protection. Guarantees due process and equal protection. Defendant informed of charges. Defendant informed of charges. Tried before an impartial tribunal. Tried before an impartial tribunal. Must be permitted to confront witnesses. Must be permitted to confront witnesses. Cannot be compelled to testify against himself/herself. Cannot be compelled to testify against himself/herself. Defendant entitled to a speedy trial. Defendant entitled to a speedy trial.

12. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 12 THE LAW OF CRIMINAL PROCEDURE May not be held liable to excessive bail and not be subject to cruel and unusual punishment. May not be held liable to excessive bail and not be subject to cruel and unusual punishment. Arrested and charged the accused should be given: Arrested and charged the accused should be given: – Preliminary Hearing. – Grand Jury. – Arraignment. – Defendant enters a plea. – Trial. – Judgment.