1 Business Law Criminal Law & Procedure Chapter Four

2 4-1 Criminal Law Goals Understand the 3 elements that make up a criminal act Classify crimes according to the severity of their potential sentences Identify the types of crimes that affect business

3 What’s Your Verdict? ~ Pg 65 Has he committed a crime despite the repayment? Hot Debate ~ Pg 64 Where do you stand? –Was Mark morally justified in his actions? –What action should the law take against Mark?

4 Crimes and Criminal Behavior Crime: punishable offense against society When a crime occurs, society (through police & prosecutors) attempts to identify, arrest, prosecute, and punish the criminal. Designed to protect society, not victim. Victim can sue criminal for civil damages

5 Elements of Criminal Acts Before you can be convicted of a crime, the prosecution must prove 3 elements regarding your behavior at the trial: 1.Whether you had a duty to do or not to do a certain thing 2.Whether you performed an act or omission in violation of that duty 3.Whether or not you had criminal intent

6 Elements of Criminal Acts #1 – Duty Everyone has a legally enforceable duty to conform his or her conduct to the law’s requirements.

7 Elements of Criminal Acts #2 - Violation of the Duty Breach of Duty – specific conduct of the defendant that violates the statute – is the Criminal Act. Example: “Criminal Battery – the intentional causing of bodily harm to another person.” Breach of duty could be proven in court if a witness testified that they saw you punch the victim.

8 Elements of Criminal Acts #3 - Criminal Intent Means the defendant intended to commit the specific act or omission defined as criminal in the controlling statute (law). Intent & Motive are separate in the eyes of law –Intent: refers strictly to the state of mind that must be present concurrently with alleged criminal act. –Motive: refers to what specifically drives a person to act or refrain from doing so.

9 What’s your Verdict? O’Brien Owed a duty, to not take the credit union’s money. Criminal conduct of taking another’s property or money by a person whom it has been entrusted – Embezzlement O’Brien did commit a crime. Return of money does not alter this fact.

10 Crimes and Criminal Behavior Example 5 year old boy find’s his dad’s revolver on the seat of the car and shoots his playmate just to see what happens. Dade County, FL prosecutor formally charged the child knowing the case would be thrown out by the court. Why? - felt they should open a file on the child, as they had not heard the last of him

11 Crimes and Criminal Behavior Example 11 year old Chicago girl, who has just been taught how to shoot her new.22 by her father, barricades herself in her garage with ammo, food, and water she has stored up for the purpose. She then opens fire on a grade-school playground across the street wounding several children and killing a principal and a janitor who tried to help the wounded. She was charged, tried, and convicted as an adult due to the degree of premeditation.

12 Corporations – Criminal Intent 1.Corporation charged with C.I. Employees perform assigned duties (criminal acts) benefiting corporation. 2.Officers - President, Treasurer, etc. Doctrine of Vicarious Criminal Liability: –Substituted criminal liability –Employee criminal intent substituted for officers criminal intent.

13 AGE - Criminal Intent Statutes ( in most states ) fix the age of criminal liability at 18 (still range 16-19). State statutes provide that minors as young as 7 may be tried and punished as adults if they are accused of serious crimes such as murder. Adult = Crime Minor = Juvenile Delinquency

14 Criminal Intent – Mental Capacity Mental Capacity Know the difference between right & wrong. Lack of Mental Capacity – can be a defense to being held responsible for the commission of criminal acts. Insane people – not held responsible Intoxication/Drugs – are held responsible

15 Criminal Intent - Circumstances Minor Traffic Offense A driver may be speeding without noticing. –Did not intend to break law –Still in violation of the law Extreme Carelessness Can be considered criminal intent Go 80mph in residential neighborhood while drunk Hit and kill a pedestrian No intention – still vehicular homicide

16 Checkpoint What three elements must be proven at trial before someone can be convicted of a crime? #1 Duty #2 Breach (Violation) of Duty #3 Criminal Intent

17 Classification of Crimes What’s Your Verdict? What crime has Murdock Committed?

18 Classification of Crimes 1 st Method Crime against ~ A Person –Assault –Kidnapping –Rape –Murder Crime against ~ Property –Theft –Robbery –embezzlement Classification Table Page 67

19 Classification of Crimes Crime against ~ Government –Treason –Tax evasion –Perjury Crime against ~ Public Peace/Order –Rioting –Disorderly conduct –Illegal speeding Crime against ~ Realty –Burglary –Arson –Criminal trespass Classification Table Page 67

20 Classification of Crimes Crime against ~ Consumers –Fraudulent sale of securities –Violation of pure food and drug laws Crime against ~ Decency –Bigamy –Obscenity –Prostitution Classification Table Page 67

21 Classification of Crimes By Levels Felonies A crime punishable by – confinement for more that a year in a state prison –by a fine of more than $1,000 –or both –or even death

22 Classification of Crimes By Levels Misdemeanors A less serious crime punishable by –confinement in a country/city jail for one year or less –a fine of $1,000 or less –or both –Examples: disorderly conduct, speeding

23 Classification of Crimes By Levels Infractions - Lesser Misdemeanors –Can only be fined –No risk of jail = not entitled to jury trial –Examples: Parking violations Littering

24 Degrees of Murder

25 Checkpoint Name two main categories of crimes classified by the severity of their potential sentences. #1 Felony – more serious crime #2Misdemeanor – less serious crime

26 Business-Related Crimes What’s Your Verdict? Have the officers and their companies committed any crime?

27 Business-Related Crimes White-Collar Crime –Offenses committed in the business world –does not involve violence or force –does not cause physical injury to people –does not cause physical damage to property Examples: –Failure to pay income taxes, stock fraud, conspiring to fix prices, false insurance claims, false advertising, bribery, political corruption, embezzlement

28 Business-Related Crimes What’s Your Verdict? Antitrust Laws –state that competing companies may not cooperate in fixing prices or in dividing sales into regions. –Require that business firms compete with one another –Guilty of violating criminal portions of A.L.

29 Common Business-Related Crimes Larceny a.k.a. Theft Theft - Wrongful taking of money or personal property belonging to someone else, with intent to deprive its owner. –Robbery: taking of property from another’s person or immediate presence, against the victim’s will, by force or by causing fear. –Burglary: entering a building without permission, intending to commit a crime.

30 Common Business-Related Crimes Receiving Stolen Property Knowingly receiving stolen property consists of either receiving or buying property known to be stolen with intent to deprive the rightful owner of the property. Fence - person who receives the stolen goods

31 Common Business-Related Crimes False Pretenses One who obtains money or other property by lying about a past or existing fact Victim parts with property voluntarily so it can not be considered Larceny. False Pretenses is a type of Fraud.

32 Common Business-Related Crimes Forgery Falsely making or materially altering a writing to defraud another. Most CommonMost Common – Check Fraud –Sign someone’s name without permission –Alter check from $7 to $70 & seven to seventy.

33 Common Business-Related Crimes Bribery Unlawfully offering or giving anything of value to influence performance of an official in the carrying out of his of her public or legal duties Soliciting or accepting bribes is criminal. Foreign Corrupt Practices Act of 1977 –Prohibits most instances of bribery in foreign countries by U.S. companies.

34 Common Business-Related Crimes Computer Crimes Computers create a range of problems for criminal laws. Traditional definition of Larceny –does not cover info copied from a computer –courts found that there was no property taken, just a lose of electrical impulses which no one owns New Laws: Computer Fraud & Abuse Act –Specifically targeting computer-related crimes

35 Common Business-Related Crimes Extortion (blackmail) Obtaining $ or other property from a person by wrongful use of force, fear or power of office Example: –Blackmailer threatens to inflict bodily injury –Threaten to expose a secret, unknown crime, or embarrassing fact if payment is not made

36 Common Business-Related Crimes Conspiracy An agreement between two or more persons to commit a crime. Conspiracy is a crime separate from the crime they intend to commit. Depending on severity – it can be classified as a felony or misdemeanor.

37 Common Business-Related Crimes Arson The willful and illegal burning or exploding of a building or other property without owner’s consent. Intentionally starting a fire or causes an explosion that damages or destroys a building Also ARSON if you burn your own building to defraud an insurer / insurance company.

38 Checkpoint Name the types of business-related crimes. –Larceny –Receiving Stolen Property –False Pretenses –Forgery –Bribery –Computer Crimes –Extortion –Conspiracy –Arson

Criminal Procedure Goals Know the rights people have when arrested and potential criminal liability for the actions of others. Name and describe the two types of defenses to criminal charges Understand appropriate punishments for crimes

40 Rights and Responsibilities What’s Your Verdict? Do you Agree? Why or Why Not?

41 Rights and Responsibilities Rights of the Accused The constitutional right to due process requires fundamental fairness in governmental actions. Fair procedures during investigation and in court.

42 Rights and Responsibilities What’s Your Verdict? The police officers sense of smell was not as keen as the police dog’s. The search was deemed unreasonable as it lacked probable cause and the marijuana could not be used as evidence Probable Cause: –a reasonable ground for belief

43 Rights and Responsibilities Rights of the Accused Right to be represented by a lawyer. Lawyers are provided for those who can afford to hire one. Right to a trial by jury. In criminal jury trials, the defendant usually is found guilty only if all the jurors vote to convict.

44 Miranda Warning –You have the right to remain silent. –Anything you say can and will be used against you in a court of law. –You have the right to talk to a lawyer for advice before being questions and to have the lawyer be present during questioning.

45 Miranda Warning Continued… –If you cannot afford a lawyer, one will be appointed to you –If you decide to answer any questions without a lawyer present, you still have the right to stop answering at any time & consult one if desired –These rights presented to you in a form or language that you can understand

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47 Rights and Responsibilities Rights of the Accused To convict a person of a crime, the evidence must establish guilt with proof “beyond a reasonable doubt” This means that there must be no sufficient basis placed in evidence that the defendant did not commit the crime

48 Rights and Responsibilities Responsibility for Criminal Conduct of Others A person who knowingly aids another in the commission of a crime is also guilty of the criminal wrongdoing –Lookout during a burglary –Plans the crime –Intentionally helps –Someone killed during a felony – all people who participated are guilty of the crime of murder

49 Checkpoint What constitutional rights would you have if you were accused of a crime? –Due process rights are embedded in the Miranda warning:

50 Defense to Criminal Charges What’s Your Verdict? If true, are those good defenses?

51 Defense to Criminal Charges What is a Defense? Defense: a legal position taken by an accused to defeat the charges against him or her 2 different types of defenses…

52 Defense to Criminal Charges Procedural Defense: Based on problems with the way evidence is obtained or the way an accused person is arrested, questioned, tried or punished Procedures

53 Defense to Criminal Charges Procedural Defense Example: Someone who has confessed to a crime might say that they signed the confession only because they were threatened by the police to do so Ignorance of the law is not a defense!

54 Defense to Criminal Charges What’s Your Verdict? If Will and Zack could prove they were not so advised, such a violation of their procedural rights under the Constitution would be a valid defense to any attempt by the prosecution to use their confession as evidence against them Sign paperwork stating that warning was given

55 Defense to Criminal Charges Substantive Defense: Disprove, justify or excuse the alleged crime against them. Discredit the facts that prosecutor tries to establish, prosecution’s case.

56 Substantive Defenses Self-Defense: –use of force that appears to be reasonably necessary to the victim to prevent death, serious bodily harm, rape or kidnapping. –Extends to your family / household and others you have the legal right to protect. –Cannot set traps for protection –Cannot shoot burglary escaping –Attempt non-deadly force first

57 Substantive Defenses Criminal Insanity: –Generally exists when, because of a verifiable mental defense or defect, the accused does not know the difference between right and wrong. –If the accused is criminally insane No criminal intent Therefore there is no crime –Must prove criminal insanity at trial

58 Substantive Defenses Immunity: –Is the freedom from prosecution when one has committed the crime charged. –Criminal may be granted immunity in exchange for an agreement to testify about the criminal conduct of several other criminals. Contempt of Court: action that hinders the admin of justice –Witness who refuses to testify after granted immunity

59 Checkpoint Name the two defense categories and give an example of each. –Procedural –Improperly obtained confession –Anything that has to do the procedures used when dealing with the accused arrest, questioning, trial or punishment –Substantive –Self-defense –Criminal Insanity –Immunity

60 Punishments for Crimes What’s Your Verdict? What is an appropriate penalty for this type of offense?

61 Punishments for Crimes Punishment: –Any penalty provided by law, imposed by court. Ranges from fines to imprisonment to even death –Purpose is not to remedy the wrong but rather discipline the wrongdoer. –If swift and certain, the punishment should deter other from similar behavior –Removes criminals from society & sometimes offers rehabilitation during sentence

62 Punishments for Crimes What’s Your Verdict? Gill was guilty of an infraction, which did not require criminal intent. Her conduct was illegal so she would probably be fined.

63 Punishments for Crimes Plea Bargaining: –An accused person may agree to plead guilty to a less serious crime in exchange for having a more serious charge dropped. –Accused voluntarily gives up the right to a public trial to avoid the risk of a greater penalty if convicted. –P.B. must be approved by judge of the court with the criminal jurisdiction over the case.

64 Checkpoint What is the purpose of punishment for a crime? Punishment has several functions: –Deter future conduct by the guilty and those who would emulate them –To remove criminal from society –Rehabilitation during the sentence

65 Analyze Real Cases Reader – Reads case to group & class Facts – Summarizes main points Prosecutor – Provide proof of guilt Defense – Defends the client Judge – Determines the outcome of case