Preview Extract
CHAPTER 7-CRIME
TRUE/FALSE
1. When measured in dollars, street crime costs society more than twice as much as whitecollar crime.
Answer: False
2. Every criminal defendant has a right to a jury trial.
Answer: False
3. General deterrence is intended to teach a specific defendant not to repeat criminal conduct.
Answer: False
4. A crime is a violation of statutory law.
Answer: True
5. The parties to a criminal trial are the government and the defendant.
Answer: True
6. In order for the government to obtain a criminal conviction, it must prove its case beyond a
reasonable doubt.
Answer: True
7. Taking a service without paying for it is a common type of larceny.
Answer: False
8. Under the laws of most states, a corporation cannot be held responsible for committing
crimes.
Answer: False
9. Actus reus means the "guilty act" and is one element the prosecution must prove in a
criminal case.
Answer: True
10. There is only one valid reason to punish criminals -- deterrence.
Answer: False
11. Criminal defendants have the right to a lawyer at all the important stages of the criminal
process.
Answer: True
12. Congress revised and reauthorized the Patriot Act, but the secret national security letter
provisions were later limited by a federal appeals court.
Answer: True
13. The Sixth Amendment declares that a person cannot be tried twice for the same criminal
offense.
Answer: False
14. Miranda v. Arizona considered the intent requirement in an armed robbery case.
Answer: False
15. Entrapment can be a valid defense to a criminal act.
Answer: True
MULTIPLE CHOICE
1. Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the
following is true?
a. Roger can be prosecuted by the state for a criminal offense and Jim may sue him for
money damages.
b. If Roger is convicted of criminal assault, Jim is not allowed to sue him for money damages
since that would violate the double jeopardy clause of the Constitution.
c. If Jim refuses to press charges against Roger, the state cannot initiate a criminal proceeding
against him.
d. Jim can either elect to sue for money damages or proceed with criminal charges.
Answer: A
2. Which of the following statements is correct?
a. Violent street crime results in a greater monetary loss to society than white-collar crime.
b. White-collar crime results in a greater monetary loss to society than violent street crime.
c. Studies are not able to calculate the estimated value of white-collar crime since most whitecollar crime is never publicly disclosed.
d. Studies are not able to accurately calculate the estimated value of either violent street crime
or white-collar crime.
Answer: B
3. Jeff picks up a piece of metal pipe and swings it around, hitting Gary across the back of the
head. What factor would be required for Jeff’s employer to be liable to Gary?
a. Jeff was at the factory when it happened.
b. Jeff voluntarily hit Gary.
c. Jeff was moving the pipe as part of his work responsiblities when he hit Gary.
d. Gary cannot be an employee of the same company as Jeff.
Answer: C
4. A misdemeanor is distinguished from a felony based upon:
a. the rules of evidence.
b. the length and place of possible imprisonment.
c. the burden of proof.
d. the type of intent.
Answer: B
5. When a judge orders a criminal defendant to reimburse the victim, it is called:
a. reimbursement.
b. restitution.
c. restraint.
d. reformation.
Answer: B
6. A successful insanity defense:
a. results in the defendant’s being back on the streets within a much shorter time than if the
defendant were convicted and sent to prison.
b. is used in about ten percent of all criminal cases.
c. is a favorite outcome for juries since they ordinarily dislike convicting felons and sending
them to prison.
d. results in a “not guilty” verdict, even if the prosecution proves the defendant committed the
criminal act.
Answer: D
7. The burden of proof required in a criminal case is:
a. clear and convincing.
b. a preponderance.
c. beyond a reasonable doubt.
d. highest degree of honesty.
Answer: C
8. The intent required to commit a burglary would be:
a. general intent.
b. reckless conduct.
c. strict liability.
d. specific intent.
Answer: D
9. Sara sent letters to 1,000 people offering to send them information that would guarantee
them a profit in the stock market if they sent her $99.95. If they sent her the money, the brief,
generally known information she sent them said: “Buy stocks when their prices are low, and
sell when the prices are high.” Sara is guilty of:
a. mail fraud.
b. larceny.
c. embezzlement.
d. nothing. She merely thought of and executed a clever way to make money.
Answer: A
10. Important steps in the criminal process, in the proper order, include:
a. probable cause hearing, search, arrest, indictment, arraignment, plea bargain, and trial.
b. arraignment, booking, bail hearing, trial, and grand jury indictment.
c. arrest, probable cause hearing, motion to suppress, booking, and trial.
d. indictment, arrest, probable cause hearing, plea bargain, arraignment, trial, and appeal.
Answer: A
11. The fraudulent conversion of property which is already in the defendant's possession is:
a. money laundering.
b. exclusion.
c. embezzlement.
d. trespassory taking.
Answer: C
12. The primary purpose of RICO was:
a. to be a tool against organized crime.
b. to raise revenue.
c. to prosecute non-citizens.
d. to prosecute those engaged in tax fraud.
Answer: A
13. The criminal penalties under RICO include all EXCEPT:
a. imprisonment.
b. capital punishment.
c. confiscation of property acquired through the criminal activity.
d. fines.
Answer: B
14. Approximately how much merchandise is stolen from United States retail stores every
year?
a. $10 million
b. $50 million
c. $10 billion
d. $25 billion
Answer: C
15. Eric was charged with attempted murder. His defense was that he was insane at the time
of the act. A jury accepted Eric's defense. Eric will:
a. probably be committed to a mental hospital and when that hospital determines he is no
longer a danger to society, he will be released.
b. be declared guilty, but will have to serve his sentence in a mental hospital rather than in
prison.
c. have to be committed to a mental hospital until he regains his sanity, at which time he will
be retried.
d. be sent to prison once he is released from the mental ward.
Answer: A
16. Sid burned his own warehouse in an attempt to collect on a fire insurance policy. Sid has
committed:
a. arson.
b. larceny since he committed an act intended to wrongfully obtain money from his insurance
company.
c. a crime called "burning to defraud insurers" since the crime of arson only applies to
property owned by another person.
d. an intentional tort, but not a crime since a person has a right to destroy his own property.
Answer: A
17. Tina is an undercover police officer. One evening she is posing as a prostitute in a bar.
Larry, a salesman who is attending an out-of-state convention, begins talking with Tina. After
about ten minutes, Tina suggests going to her room for a good time but points out he will
need to "donate" $100 to her. Arriving at Tina's hotel room, Larry asks if she is a
policewoman. Tina lies and says she is not. When Larry gives her $100, Tina shows him her
identification and arrests him.
a. Larry appears to have been the victim of entrapment since Tina lied about being a police
officer.
b. Larry appears to have been the victim of entrapment since Tina was the one who suggested
the activity that resulted in Larry's arrest.
c. Both of the above are correct.
d. None of the above is correct.
Answer: D
18. Illegally obtained evidence is not permitted to be used at a criminal trial based upon the:
a. silver plate doctrine.
b. exclusionary rule
c. fair play doctrine.
d. Eighth Amendment.
Answer: B
19. The Theft of Honest Services statute:
a. is violated if an employee draws sick leave pay on a day when she is not sick.
b. applies only to government officials.
c. prohibits both public and private employees from taking bribes or kickbacks.
d. was not passed into law due to a presidential veto.
Answer: C
20. Sarah, an employee of Amex Corporation, committed a serious criminal act in an attempt
to obtain a large sales order for her employer. A court found her guilty of the felony and also
found the corporation guilty of criminal conduct. The company was fined $1 million. The
court:
a. erred in fining the company since finding both Sarah and the corporation guilty violates the
Double Jeopardy Clause of the Constitution.
b. acted properly if this were a federal proceeding; however, it did not act properly if this
were a state proceeding.
c. acted properly if this were a state proceeding but not if this were a federal case.
d. acted properly in this case.
Answer: D
21. Barden Corporation was convicted of violating federal RICO laws. Accordingly:
a. the government may file criminal charges against both the company and the individuals
associated with the criminal acts.
b. the government may file a civil lawsuit against the company to obtain injunctions and other
relief.
c. individuals may file civil lawsuits against the company for violating the RICO statute to
recover losses sustained by the criminal act.
d. All the above are correct.
Answer: D
22. The Miranda warning insures that the criminal suspects understand their constitutional
rights relating to:
a. search and seizure.
b. self incrimination.
c. double jeopardy.
d. having a jury trial.
Answer: B
23. Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she
shines a flashlight into the passenger compartment of Tim's car and sees evidence of drug
paraphernalia. Which statement is correct?
a. Diane may search the passenger compartment of the car and any place else in the car,
including the trunk, without Tim's consent.
b. Diane may search the passenger compartment of the car without Tim's consent; however,
she may not search the trunk of the car without his consent or without a search warrant.
c. Diane may not search the passenger compartment of the car (nor any place else) without
Tim's consent or a search warrant. However, she can require Tim to remain parked until the
search warrant is brought to her.
d. Under the above circumstances, Diane can write Tim a traffic citation but cannot search the
vehicle.
Answer: A
24. Miguel reprogrammed a cellular telephone so that it intercepted electronic funds transfers
and rerouted them to Miguel’s bank account. What crime has he committed?
a. Insurance fraud, since the bank’s insurance will have to cover the misdirected funds.
b. Wire fraud.
c. Mail fraud.
d. Embezzlement
Answer: B
25. Mulcare Corp. started a compliance program to prevent and detect criminal conduct
within the company and had specific, high-level officers in charge of overseeing the program.
The company effectively communicated the program to its employees and monitored those
employees who were in a position to cheat. It promptly disciplined anyone who broke the
law. One effect of having this program is:
a. federal investigators would no longer investigate the company since Mulcare could take
care of any problems internally.
b. federal investigators might be convinced to limit any prosecution to those directly involved
rather than attempting to get a conviction against high-ranking officers or against the
company itself.
c. the Federal Sentencing Guidelines no longer apply.
d. any cases would be prosecuted in state, rather than federal, court.
Answer: B
ESSAY
1. Compare and contrast money laundering and embezzlement. Give an example of each.
Answer: Both money laundering and embezzlement are crimes involving illegally obtained
money. Money laundering involves taking the proceeds of criminal activities and either using
the money to promote crime or attempting to conceal the source of the money. An example
might be a drug dealer who gets large sums of cash and filters the money back into the
economy by showing it as income from a restaurant he also owns. Embezzlement is the
fraudulent conversion of property that is already in the defendant’s possession. For example,
a corporation’s financial officer writes an occasional check to herself on the corporate
account, without the company’s knowledge or approval.
2. List and discuss the protections afforded criminal defendants by the Bill of Rights.
Answer: The first ten amendments to the Constitution, called the "Bill of Rights," include
numerous provisions directed at governmental conduct in criminal cases. The important
provisions include: the Fourth Amendment prohibition against unreasonable searches and
seizures which requires a search warrant in most situations before a search may be conducted;
the Fifth Amendment protections of due process, double jeopardy, and the prohibition against
being forced to testify against yourself; the Sixth Amendment guarantee of legal
representation at all important stages of the criminal process; and the Eighth Amendment
prohibition against cruel and unusual punishment.
3. Discuss the growing problem of identity theft, including how thieves get personal
information, what they do with this information, and how a victim should respond.
Answer: Thieves have a variety of ways to get a person’s private information. They may steal
records at work by hacking into company files or bribing coworkers, rummage through trash
or mailboxes, pose as a landlord or employer with a valid interest in your credit, use an
electronic device to record your personal information when you use a credit card
(“skimming”), or contact you by phone or e-mail posing as a legitimate company attempting
to correct a problem with your account (“phishing”). Thieves may use your private
information to open new credit card accounts and purchase “big ticket” items, open a new
bank account and write bad checks, use credit cards and checks to drain your bank account,
or give your name to police during an investigation so when they fail to appear in court a
warrant will be issued for your arrest rather than theirs. A victim of identity theft should place
a fraud alert on credit reports by phoning one of the three major credit companies (Equifax,
Experian, or TransUnion), close any account that is potentially affected, notify the local
police, and file a complaint with the FTC.
4. Mary was suspicious of her neighbor, whom she thought was involved in selling illegal
drugs. One day Mary arrived at her apartment and saw a large paper sack tied up with string
in front of her neighbor's door. She took the bundle into her apartment, opened it, and
discovered it was full of cocaine. She called the police and the neighbor was arrested. The
neighbor's lawyer claimed the evidence had been illegally obtained since no probable cause
existed to justify opening up the paper bundle.
Answer: The evidence was lawfully obtained. The Fourth Amendment's protection against
unreasonable searches only applies to government officials. The Fourth Amendment does not
extend protection to persons from the acts of private citizens who act totally independently
and then report their findings to the police. Civil law would provide any available remedies.
5. Dan was arrested and taken to an interrogation room for questioning. After signing a
statement waiving his Miranda rights, he agreed to answer questions without a lawyer. After
about ten minutes, he told the officers he changed his mind and wanted to talk to a lawyer
before answering any more questions. The officers left the room and then came back in. They
told Dan that his partner was confessing to the crime and that, "If your partner confesses first
and makes a deal, you're the one who's going to go down for this." Dan looked at them
without saying anything. After a minute, the officer began questioning Dan again and he
confessed to the crime after about an hour. Is this confession admissible?
Answer: Probably not, as once the defendant states during interrogation, "I want to see my
lawyer," then all questioning must stop. The questioning can be started again, but only if the
defendant asks for it to begin and again waives his rights. In this case, Dan was not the one to
start the interrogation process again and he did not re-waive his right to remain silent and/or
have a lawyer present during the questioning.
Test Bank For Introduction to Business Law
Jeffrey F. Beatty, Susan S. Samuelson
9781133188155
