1. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1 Criminal Law Chapter 6 BUSINESS LAW TODAY Essentials 9 th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A. Jentz - University of Texas at Austin, Emeritus

2. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 Learning Objectives  What two elements must exist before a person can be convicted of a crime? Can a corporation commit crimes?  What are five broad categories of crimes? What is white collar crime?  What defenses might be raised by criminal defendants to avoid liability for criminal acts?  What constitutional safeguards exist to protect persons accused of a crime?  What are the basic steps in the criminal process?

3. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 Civil Law and Criminal Law

4. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 Key Differences between Civil Law and Criminal Law

5. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 Civil and Criminal Liability for Same Act

6. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 Criminal Liability  A person’s wrongful act may hold him liable (or guilty) in civil actions (tort) and criminal actions.  State must show beyond a reasonable doubt that the defendant: Performed an criminal act (actus reus) AND Performed an criminal act (actus reus) AND While performing the act, had the required intent or specific state of mind (mens rea). While performing the act, had the required intent or specific state of mind (mens rea).  Without the required intent there can be no conviction.

7. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 Corporate Criminal Liability  Liability of the Corporate Entity. Crimes must occur within scope of employment. Crimes must occur within scope of employment. Corporations can be held criminally liable when they FAIL to fulfill certain statutory duties. Corporations can be held criminally liable when they FAIL to fulfill certain statutory duties.  Criminal liability of corporate officers and directors under the “Responsible Officer” doctrine: Employees under their control and supervision. Employees under their control and supervision. Do not have to participate in, or direct, or know about criminal violation. Do not have to participate in, or direct, or know about criminal violation.

8. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 Types of Crimes  Violent Crime. Crimes against persons (murder, rape). Crimes against persons (murder, rape). Robbery is a violent crime. Robbery is a violent crime.  Property Crime: most common, involves money or property: Burglary. Burglary. Larceny. Larceny. Obtaining Goods by False Pretenses. Obtaining Goods by False Pretenses. Receiving Stolen Goods. Receiving Stolen Goods. Arson. Arson. Forgery. Forgery.

9. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 Types of Crimes  Public Order Crime.  White Collar Crime: non-violent crimes involving a business transaction. Embezzlement. Embezzlement. Mail and Wire Fraud. Mail and Wire Fraud. Bribery. Bribery. Theft of Trade Secrets. Theft of Trade Secrets. Insider Trading. Insider Trading.

10. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 Types of Crimes  Organized Crime. Money laundering. Money laundering. Racketeer Influenced and Corrupt Organizations Act (RICO). Racketeer Influenced and Corrupt Organizations Act (RICO). Criminal Provisions (includes 26 different types of felonies with fines up to $25,000 and 20 years in prison for each offense).Criminal Provisions (includes 26 different types of felonies with fines up to $25,000 and 20 years in prison for each offense). Civil Penalties include forfeiture, and treble damages.Civil Penalties include forfeiture, and treble damages.

11. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 Classification of Crimes  Felonies: serious crimes punishable by death or by imprisonment over one (1) year.  Misdemeanors: less serious crimes punishable by fine or by confinement up to one (1) year.

12. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 Defenses to Criminal Liability Immunity.Mistake. Statute of Limitations. Insanity. Entrapment.Necessity. Duress. Justifiable Use of Force.

13. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 Fourth Amendment Protections  Search Warrants: Officer must have Probable Cause. Officer must have Probable Cause. Exceptions to Warrant. Exceptions to Warrant.  Search and Seizure in Businesses. Warrant required in some cases. Warrant required in some cases. No warrant required for contaminated food or highly regulated liquor or gun businesses. No warrant required for contaminated food or highly regulated liquor or gun businesses. CASE 6.1 U.S. v. Moon (2008). State officials can seize business records without a warrant if owner agrees to search. CASE 6.1 U.S. v. Moon (2008). State officials can seize business records without a warrant if owner agrees to search.

14. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 Fifth Amendment Protections  Due Process of Law. Opportunity to Object. Opportunity to Object. Hearing before a neutral Magistrate. Hearing before a neutral Magistrate.  Double Jeopardy. Person cannot be retried for the same offense in the same court. Person cannot be retried for the same offense in the same court. Civil action, however, is permitted. Civil action, however, is permitted.  Self-Incrimination. “Right to Remain Silent” or not testify against yourself “Right to Remain Silent” or not testify against yourself

15. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 Six and Eighth Amendments  Right to Speedy Trial.  Right to Jury Trial.  Right to Public Trial.  Right to Confront Witnesses.  Right to Counsel.  Prohibition on cruel and unusual punishment.

16. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 Exclusionary Rule and the Miranda Rule  Evidence obtained in violation of constitutional procedures must be excluded.  Evidence derived from illegal evidence is “fruit of the poisonous tree.”  Deters police from misconduct.  CASE 6.2 Herring v. United States (2009). Evidence obtained during a search incident to a ‘mistaken’ arrest is admissible.

17. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 Exclusionary Rule and the Miranda Rule  Miranda v. Arizona (1966). Inform suspect of his rights. Inform suspect of his rights. Exceptions: Exceptions: Public SafetyPublic Safety Coercion.Coercion. Illegally obtained evidence.Illegally obtained evidence.

18. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 Criminal Process  Sentencing Guidelines: 2005 Supreme Court changed the guidelines from mandatory to advisory. 2009: Court held sentencing judge cannot presume that a sentence within guidelines is reasonable. Arrest Initial Appear Booking Charges Filed (Indictment or Information) Grand Jury/ Prelim. Hearing Plea Bargain Trial Guilty Plea Arraign- ment