Chapter 8 Crimes Twomey, Business Law and the Regulatory Environment (14th Ed.)

(c) 2000 West Legal Studies Chapter 82 Crimes and Criminal Activity [8-1] Mental StateAct Types of crimes Parties to a Crime Penalties for crime Felonies Misdemeanors Employers/Employees Corporations Imprisonment Fines Restitution (civil suits too) White Collar Competition crimes Securities crimes Racketeering Bribery Extortion Blackmail Corrupt influence Counterfeiting Forgery Perjury False claims/Fraud Bad checks Swindles Mail fraud Credit card crimes Embezzlement Computer Crime Theft of hardware Theft of software Intentional damage Unauthorized use Raiding Diverted delivery EFT crimes Crimes of Force l Larceny l Robbery l Burglary l Arson l Civil disorder

(c) 2000 West Legal Studies Chapter 83 l Improper use of interstate commerce l Securities crimes l Racketeering l Bribery l Extortion l Blackmail l Improper political influence l Improper commercial influence l Counterfeiting l Forgery l Perjury l False claims l Obtaining goods by false pretenses l Bad checks l Cheats and swindles l Credit card crimes l Use of mails to defraud l Criminal libel l Embezzlement Crimes that do not use or threaten to use force or violence or that do not cause injury to a person(s) or physical damage to property White Collar Crimes [8-2]

(c) 2000 West Legal Studies Chapter 84 Violent Crimes [8-3] l Larceny l Robbery l Burglary l Arson l Riots l Civil disorder l Murder Crimes that involve the use of force, or threat of force, or that cause injury to a person(s) or damage to property.

(c) 2000 West Legal Studies Chapter 85 Penalties for Business Crime under Federal Law Agency May complaint name individual? Maximum individual penalty Maximum corporate penalty Internal Revenue Service Antitrust Division of the Justice Department Food and Drug Administration Securities and ExchangeCommission Federal Trade Commission Yes Willful failure to pay, $10,000/five years; willful failure to file, $25,000/one year; fraud, $100,000/three years $100,000, three years, or both $1,000, one year, or both for first offense; $10,000, three years or both thereafter; illegal drug importation, $250,000/ten years Restitution, injunction $10,000, five years or both (1933); $100,000, five years, or both (1934) $2 million Restitution, injunction, divestiture, $10,000 per day for violation of rules, orders $1,000 for first offense, $10,000 thereafter; seizure of condemned products; illegal drug importation, $250,000 $1 million, injunction, divestiture Willful failure to pay, $10,000, 50% assessment, prosecution costs; willful failure to file, $100,000; fraud, $500,000

(c) 2000 West Legal Studies Chapter 86 Maximum corporate penalty Agency Equal Employment Opportunity Commission Office of Federal Contract Compliance Programs Environmental Protection Agency Occupational Safety and Health Administration Consumer Product Safety Commission Fair Labor Standards Act May complaint name individual? No Yes No Yes No Yes Maximum individual penalty Injunction (some state liability possible) Medical waste, $50,000/two years; solid waste, $250,000/two years; $50,000 per day of violation penalty Willful, maximum of $70,000 per violation; minimum of $5,000 per violation; death, $10,000 and/or six months; false reports, $10,000 and/or six months; advance notice of inspection, $1,000 and/or six months $10,000 per employee, six months, or both $100,000, reimbursement of wages Penalties for Business Crimes under Federal Law [2] Injunction, back pay award, reinstatement Suspension, cancellation of contract Medical waste, $1 million; solid waste, $1 million; $50,000 per day of violation penalty $70,000 $500,000 (civil)$50,000, one year, or both

(c) 2000 West Legal Studies Chapter 87 Chapter 8 Summary When a person does not live up to the standards set by law, society may regard this person’s conduct as so dangerous to the government, to other people, or to property that society will prosecute the person for the misconduct. This punishable conduct, called crime, may be common law or statutory in origin. Crimes are classified as felonies and misdemeanors. A felony is a crime that is punishable by imprisonment or death.

(c) 2000 West Legal Studies Chapter 88 Minors, the insane, and the intoxicated are held criminally responsible to a limited extent. This means that in some cases they will not be held responsible for a crime that a normal, adult person would be. Employers and corporations may be criminally responsible for their acts and the acts of their employees. Chapter 8 Summary [2]

(c) 2000 West Legal Studies Chapter 89 The federal sentencing guidelines impose mandatory sentences for federal crimes and allow judges to consider whether the fact that a business promotes compliance with the law is a reason for reducing a sentence. Chapter 8 Summary [3]

(c) 2000 West Legal Studies Chapter 810 White collar crimes include those relating to illegal methods of production, competition, and marketing, such as the illegal use of interstate transportation and communication. Other white collar crimes include bribery, extortion, blackmail, and corrupt influence in politics and in business. Chapter 8 Summary [4]

(c) 2000 West Legal Studies Chapter 811 Also included as white collar crimes are counterfeiting, forgery, perjury, the making of false claims against the government, and the obtaining of goods or money by false pretenses. Also included are the use of bad checks, swindles and confidence games, credit card fraud, the use of the mails to defraud, and embezzlement. Chapter 8 Summary [5]

(c) 2000 West Legal Studies Chapter 812 Statutes have expanded the area of criminal law to meet situations in which computers are involved. The unauthorized taking of information from a computer is made a crime under both federal and state statutes. Chapter 8 Summary [6]

(c) 2000 West Legal Studies Chapter 813 The diversion of deliveries of goods and the transfer of funds, the theft of software, and computer raiding are made crimes to some extent by the federal Computer Access Device and Computer Fraud Abuse Act of 1984 and the Electronic Fund Transfers Act of Chapter 8 Summary [7]

(c) 2000 West Legal Studies Chapter 814 There is no uniform law of crimes. Each state and the federal government define and punish crimes as they choose. Although the tendency is to follow a common pattern, many variations exist between the law of different states and federal law. Chapter 8 Summary [8]

(c) 2000 West Legal Studies Chapter 815 Criminal procedure is dictated by the Fourth, Fifth, and Sixth Amendments. The Fourth Amendment protects against unreasonable searches, the Fifth Amendment protects against self-incrimination and provides due process, and the Sixth Amendment guarantees a speedy trial. Chapter 8 Summary [9]