1. © 2008 West Legal Studies in Business A Division of Thomson Learning 1 BUSINESS LAW TODAY Essentials 8 th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A. Jentz - University of Texas at Austin, Emeritus Chapter 6 Criminal Law and Cyber Crimes

2. © 2008 West Legal Studies in Business A Division of Thomson Learning 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 major procedural steps in the criminal process?  What is cyber crime? What laws apply to crimes committed in cyberspace?

3. © 2008 West Legal Studies in Business A Division of Thomson Learning 3 Civil Law vs. Criminal Law

4. © 2008 West Legal Studies in Business A Division of Thomson Learning 4 Civil and Criminal Liability

5. © 2008 West Legal Studies in Business A Division of Thomson Learning 5 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 illegal act (actus reus) AND While performing the act, had the required intent or specific state of mind (mens rea).  Without the required intent there can be no conviction.

6. © 2008 West Legal Studies in Business A Division of Thomson Learning 6 Corporate Criminal Liability  Liability of the Corporate Entity. Crimes must occur within scope of employment. Corporations can be held criminally liable when they FAIL to fulfill certain statutory duties.  Corporate officers and directors can be criminally liable under the “Responsible Officer” doctrine.

7. © 2008 West Legal Studies in Business A Division of Thomson Learning 7 Types of Crimes  Violent Crimes. Crimes against persons (murder, rape). Robbery is a violent crime.  Property Crimes - Most common, involves money or property: Burglary. Larceny. Obtaining Goods by False Pretenses. Receiving Stolen Goods. Arson. Forgery.

8. © 2008 West Legal Studies in Business A Division of Thomson Learning 8 Types of Crimes  Public Order Crimes.  White Collar Crimes: non-violent crimes involving a business transaction: Embezzlement. Mail and Wire Fraud. CASE 6.1 United States v. Lyons (2007). Bribery. Theft of Trade Secrets. Insider Trading.

9. © 2008 West Legal Studies in Business A Division of Thomson Learning 9 Types of Crimes  Organized Crime. Money laundering. Racketeer Influenced and Corrupt Organizations Act (RICO).

10. © 2008 West Legal Studies in Business A Division of Thomson Learning 10 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.

11. © 2008 West Legal Studies in Business A Division of Thomson Learning 11 Defenses to Criminal Liability Infancy (juvenile).Mistake. Intoxication: voluntary vs. involuntary. Consent. Insanity.Duress. Justifiable Use of Force. Entrapment. Immunity.Statute of Limitations.

12. © 2008 West Legal Studies in Business A Division of Thomson Learning 12 Fourth Amendment Protections  Search Warrants: Officer must have Probable Cause. Exceptions to Warrant.  Search and Seizure in Businesses. Warrant required in some cases. No warrant required for contaminated food or highly regulated liquor or gun businesses. CASE 6.2 United States v. Hartwell (2006).

13. © 2008 West Legal Studies in Business A Division of Thomson Learning 13 Fifth Amendment Protections  Due Process of Law. Opportunity to Object. Hearing before a neutral Magistrate.  Double Jeopardy. Person cannot be retried for the same offense in the same court. Civil action, however, is permitted.  Self-Incrimination. “Right to Remain Silent” or not testify against yourself

14. © 2008 West Legal Studies in Business A Division of Thomson Learning 14 Six and Eighth Amendments  Right to Speedy Trial.  Right to Jury Trial.  Right to Public Trial.  Right to Confront Witnesses.  Right to Counsel. CASE 6.3 Fellers v. United States (2004).  Prohibition on cruel and unusual punishment.

15. © 2008 West Legal Studies in Business A Division of Thomson Learning 15 Exclusionary Rule & Miranda  Exclusionary 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.  Miranda Rule. Inform suspect of his rights. Exceptions: coercion, illegally obtained evidence.

16. © 2008 West Legal Studies in Business A Division of Thomson Learning 16 Criminal Process Arrest Initial Appear Booking Charges Filed Prelim Hearing Arraign- ment Plea Bargain Trial Guilty Plea

17. © 2008 West Legal Studies in Business A Division of Thomson Learning 17 Cyber Crime  Cyber crimes involve the use of computers in cyberspace to injure a person or property.  Most cyber crimes are based on existing common law crimes, with exceptions: Identity Theft. Cyber Stalking. Hacking. Cyber Terrorism.  Computer Fraud and Abuse Act helps prosecute computer crime.