1. Chapter 9: Criminal Law and Cyber Crimes
Jentz  Miller  Cross
BUSINESS LAW Alternate Edition 11thEd.
Chapter 9: Criminal Law and Cyber Crimes
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

2. §1: Civil and Criminal Law
Major differences:
Civil (Tort)
Criminal
Preponderance
Beyond Reasonable Doubt
Damages
Jail or Prison
Private (parties hire their own attorneys)
Public (Prosecutor represents community)
May be liable for civil damages
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

3. Civil vs. Criminal
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

4. §2: Classification of Crimes
An act can have both civil and criminal consequences. (O.J. Simpson trials)
Felonies
Misdemeanors
Serious crimes, punishable by Death or prison for more than one (1) year.
Non-serious (petty) crimes punishable by jail for less than one(1) year and/or by fines.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

5. §3: Criminal Liability To be convicted of a crime, a person must:
Commit a guilty act (actus reus).
Have the guilty mind (mens rea) during commission of the guilty act.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

6. Corporate Criminal Liability
A corporation is creature of state statute.
A corporate entity may be convicted of a crime.
Punishment would be fines and/or denial of certain legal privileges.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

7. Liability of the Corporate Entity
Corporations may be convicted of criminal activity if:
Crime is within agent/employee’s scope of employment;
Corporation fails to perform a legally required duty; or
Crime authorized or requested by corporate principal/officer.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

8. Liability of Corporate Officers and Directors
Corporate officers and directors are personally liable for crimes they commit.
Also, they may be criminally liable for acts of their under the “Responsible Corporate Officer” doctrine. U.S. v. Park (1975).
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

9. §4: Types of Crimes Violent Crime. Property Crime.
Murder, sexual assault, rape, robbery.
Property Crime.
Burglary, larceny, theft of trade secrets, theft of services, arson, receipt of stolen goods, forgery.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

10. “White Collar” Crime
Crimes occurring in the business context using non-violent means to obtain personal or business advantage.
Embezzlement. CASE George v. Commonwealth of Virginia (2008).
Mail or Wire Fraud (federal). CASE 9.2 United States v. Lyons (2007).
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

11. “White Collar” Crime
Crimes occurring in the business context using non-violent means to obtain personal or business advantage (continued):
Bribery.
Bankruptcy Fraud (federal).
Insider Trading (federal).
Theft of Trade Secrets (federal).
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

12. Organized Crime
Operates illegitimately by providing illegal goods and services:
Money Laundering.
RICO(criminal and civil liability).
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

13. §5: Defenses to Criminal Liability
Infancy (juvenile).
Involuntary Intoxication: is a defense if person was incapable of understanding act.
Insanity: defendant lacked substantial capacity to appreciate the wrongfulness of act or to conform act to law.
Mistake.
Duress.
Consent.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

14. Defenses
Justifiable Use of Force: Self-Defense of People and Property can use deadly force if reasonable belief of imminent death or serious injury; cannot use deadly force to protect property alone.
Necessity: criminal act necessary to prevent greater harm.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

15. Defenses
Entrapment: prevents government from encouraging crimes. Key issue: was the defendant pre-disposed to commit the act?
Statute of Limitations.
Immunity.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

16. §6: Criminal Procedures
U.S. Constitution provides specific safeguards for those accused of crimes at federal and state level.
Criminal procedures are designed to protect against the arbitrary use of power by the government.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

17. Fourth Amendment
The Fourth Amendment protects against unreasonable search and seizures.
No warrant for search or arrest can issue without probable cause.
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18. Exclusionary Rule
Evidence obtained in violation of Constitutional amendments is excluded from trial.
Purpose is to deter police from warrantless searches, seizures and misconduct.
“Inevitability” and “good faith” are exceptions to the rule.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

19. The “Miranda” Rule
CASE Miranda v. Arizona (1966). required police to inform suspects of their constitutional rights.
The Supreme Court upheld Miranda in Dickerson v. U.S. (2000).
Exceptions to Miranda: public safety, certain confessions, suspect must unequivocally assert right to counsel,
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

20. Criminal Process
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21. Criminal Process
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22. Criminal Process
Is a defendant’s right to cross-examine a witness violated by two-way videoconferencing?
Federal Sentencing Guidelines.
1984: Sentencing Reform Act.
2005: Supreme Court ruled some provisions of this Act were unconstitutional.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.

23. §7: Cyber Crimes
Computer crime: any act directed against computers or that uses computers as an instrumentality of a crime.
Cyber Theft.
Financial Crimes.
Identity Theft.
Cyber Stalking.
Hacking and Cyber Terrorism.
Computer Fraud and Abuse Act (1996).
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning.