Business Law Principles for Todays Commercial Environment
5th Edition Twomey Test Bank
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Chapter 07: Crimes
True / False
1. Crimes and criminal punishment guidelines are specified in detailed criminal codes and statutes.
a. True
b. False ANSWER: True
2. Crimes are classified as common law or statutory according to their origin.
a. True
b. False ANSWER: True
3. Generally, misdemeanors are more serious than felonies.
a. True
b. False ANSWER: False
4. An act that is a felony in one state be a felony in all states.
a. True
b. False ANSWER: False
5. A crime consists of three elements: the mental state, the intent, and the act.
a. True
b. False ANSWER: False
6. It is not necessary that some person be harmed for an act to be considered a crime.
a. True
b. False ANSWER: True
7. "Mental state" does not require an awareness of guilt.
a. True
b. False ANSWER: True
8. For nonbusiness crimes, only those who are actually involved in the act itself can be convicted of the crime.
a. True
b. False ANSWER: True
9. For business crimes, managers cannot be held criminally responsible for the conduct of their employees.
a. True
b. False
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Chapter 07: Crimes
ANSWER: False
10. Because a corporation is not a human being, it cannot be convicted of a crime.
a. True
b. False ANSWER: False
11. Executives can be convicted on the basis of “honest services” fraud that something went wrong at their company.
a. True
b. False ANSWER: False
12. Some types of instruments of crime are automatically forfeited.
a. True
b. False ANSWER: True
13. Criminal penalties for corporations are based on a percentage of sales.
a. True
b. False ANSWER: False
14. Corporate Integrity Agreements are the equivalent of putting a corporation on probation.
a. True
b. False ANSWER: True
15. Corporate managers found guilty of masterminding any criminal activity must be sentenced to prison time.
a. True
b. False ANSWER: True
16. One of the modern trends in punishing business crimes involves barring executives and officers from working in their fields if they have a criminal conviction.
a. True
b. False ANSWER: True
17. White-collar crimes generally involve violence.
a. True
b. False ANSWER: False
18. The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions.
a. True
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Name: Class:
Chapter 07: Crimes
b. False ANSWER: True
Date:
19. The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed primarily to prevent individuals involved in organized crime from investing money obtained through racketeering in legitimate businesses.
a. True
b. False ANSWER: True
20. Bribery requires the use of violence.
a. True
b. False ANSWER: False
21. Extortion and blackmail are exactly the same.
a. True
b. False ANSWER: False
22. The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the United States.
a. True
b. False ANSWER: True
23. Forgery includes signing another person's name to a check with the intent to defraud.
a. True
b. False ANSWER: True
24. The issuing or delivery of a forged instrument to another person constitutes the crime of counterfeiting a forged instrument.
a. True
b. False ANSWER: False
25. Embezzlement involves fraud.
a. True
b. False ANSWER: True
26. Larceny is best defined as the taking of personal property from the presence of the victim by the use of force or fear.
a. True
b. False ANSWER: False
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Chapter 07: Crimes
27. A computer crime generally can only be committed by a person having some knowledge of the operation of a computer.
a. True
b. False ANSWER: True
28. Destroying information stored on a computer may be a crime.
a. True
b. False ANSWER: True
29. One of the exceptions to the Fourth Amendment requirement for a warranty is the “plain-view” exception.
a. True
b. False ANSWER: True
30. Corporations are entitled to Fifth Amendment protection.
a. True
b. False ANSWER: False
31. Due process includes the right to be heard, question witnesses, and present evidence.
a. True
b. False ANSWER: True Multiple Choice
32. Crimes are generally defined and their punishments specified by:
a. trial court judges.
b. appellate judges.
c. codes and statutes.
d. the United States Constitution. ANSWER: c
33. All states recognize _________, which protects privileged documents and notes from seizure by the government, even with a warrant.
a. the warrantless search privilege
b. the “plain view” privilege
c. the attorney-client privilege
d. the Fifth Amendment privilege.
ANSWER: c
34. A crime generally consists of:
a. an act or omission.
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Chapter 07: Crimes
b. a mental state.
c. a mental state and an act or omission.
d. a mental state, an act or omission, and harm.
ANSWER: c
35. Specific statutes define the _______, which is the criminal conduct required to be charged with a crime.
a. mental state.
b. scienter.
c. actus reus
d. mental awareness.
ANSWER: c
36. When a defendant is convicted of a crime, the court may also declare that the defendant’s rights in any property used or gained from the crime be confiscated. This is known as __________.
a. forfeiture
b. reversion
c. subversion
d. divestiture
ANSWER: a
37. Penalties for crimes are:
a. always paid to the government.
b. always paid to the victim(s).
c. shared equally between the government and the victim(s).
d. subject to forfeiture.
ANSWER: a
38. If U.S. Senator Jones is charged with a conflict of interest because of his financial interest in a firm he helped to secure a contract, he would most likely be charged with the crime of ________.
a. bribery
b. extortion
c. improper political influence
d. blackmail
ANSWER: c
39. Conspiracy means committing a criminal act.
a. thinking about
b. an agreement aimed at
c. thinking with others about
d. all of these
ANSWER: b
40. Money involves the knowing and willful participation in a financial transaction involving unlawful proceeds when the transaction is designed to conceal or disguise the source of the funds.
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Chapter 07: Crimes
a. ironing
b. vacuuming
c. laundering
d. cooking
ANSWER: c
41. The Racketeer Influenced and Corrupt Organizations (RICO) Act is a product of:
a. Congress.
b. international trade agreements.
c. state law.
d. the Constitution.
ANSWER: a
42. Racketeering is defined as:
a. using money to influence public officials.
b. using money to influence employees of competitors.
c. using money derived from illegal activities to invest in legitimate businesses.
d. using money to influence foreign officials.
ANSWER: c
43. Bribery is defined as:
a. giving money, property, or any benefit to a person to influence that person's judgment.
b. using one’s position as a public official to make an illegal demand.
c. using one’s position as a nonpublic official to make an illegal demand.
d. exerting improper political influence.
ANSWER: a
44. Blackmail is defined as:
a. giving money to a person to influence that person's judgment.
b. an illegal demand made by a public official.
c. an illegal demand made by a nonpublic official.
d. providing improper political influence.
ANSWER: c
45. In some states, the taking of information from a computer without the consent of the owner is called _______.
a. unauthorized use of computers
b. diverted delivery by computer.
c. computer trespass.
d. economic espionage by computer.
ANSWER: c
46. Counterfeiting is:
a. a federal crime only.
b. a state crime only.
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Chapter 07: Crimes
c. both a federal and state crime.
d. determined by the individual.
ANSWER: c
47. Perjury occurs:
a. only in federal court.
b. only in written form.
c. only in state courts.
d. In both oral and written forms.
ANSWER: d
48. The makes it a federal offense to circumvent or create programs to circumvent encryption devices that copyright holders place on copyrighted material to prevent unauthorized copying.
a. CAN-SPAM Act.
b. DMCA.
c. EFTA.
d. NET Act.
ANSWER: b
49. Failure to give means that a defendant’s statements or confession cannot be used as evidence against that individual.
a. the Miranda warnings
b. the Sarbanes-Oxley warnings
c. the Fourth Amendment warnings
d. the Fifth Amendment warnings
ANSWER: a
50. In a prosecution for unauthorized use of computers, unsecure has proven to be a challenge in prosecution for unauthorized use of computer information.
a. economic espionage
b. diverted delivery
c. computer raiding
d. wi-fi networks
ANSWER: c
51. If a person unlawfully gains access to a computer and fraudulently causes goods to be “lost” from their true destination, he might be guilty of _______.
a. circumventing logistics transfers.
b. computer raiding.
c. economic espionage by computer.
d. diverted delivery by computer.
ANSWER: d
52. A computer crime generally requires that:
a. the criminal possess a computer.
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Chapter 07: Crimes
b. the victim possess a computer.
c. the criminal have some knowledge of computers.
d. the victim have some knowledge of computers.
ANSWER: c
53. Computer crimes include:
a. theft of hardware.
b. theft of software.
c. intentional damage to information stored on a computer.
d. All of these.
ANSWER: d
54. The unauthorized use of a computer belonging to someone else is:
a. a crime in all states.
b. a crime in some states.
c. not a crime in any state.
d. a crime under federal law only.
ANSWER: b
55. The Economic-Espionage Act (EEA):
a. makes it a crime to use a fraudulently obtained device to obtain money through an electronic fund transfer system.
b. makes it a crime to send unsolicited bulk emails.
c. makes it a crime to transfer proprietary files, documents and information from a computer to an unauthorized person.
d. all of these.
ANSWER: c
56. The Fourth Amendment to the United States Constitution’s protection against unreasonable searches applies to:
a. personal homes only.
b. businesses only.
c. both homes and businesses.
d. none of these.
ANSWER: c
57. The Fifth Amendment to the United States Constitution’s protection against self-incrimination applies to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
ANSWER: a
58. Due process rights apply to:
a. individuals only.
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Chapter 07: Crimes
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
ANSWER: c
Essay
59. James Smith, a health inspector for the state of Missouri, inspected a restaurant owned by Salley Slick. Smith found numerous health violations in the restaurant and fined Slick accordingly. When Smith notified Slick of the infractions, Smith strongly suggested that $5,000 "would sure prove handy in the Spring" when he planned to purchase a new fishing boat. Slick understood Smith's obvious hint and offered Smith $5,000 if he would lose the paperwork concerning the failure of the restaurant to meet proper inspection guidelines. Smith accepted the $5,000 and lost the paperwork. One month later, Smith returned to the restaurant and told Slick that he would reappear every month and find violations unless Slick produced $1,000 each month to go toward the purchase of a fleet for Smith. Slick agreed to make the $1,000 payments. What crimes have been committed by Smith and Slick?
ANSWER: Bribery occurs when a person's judgment is influenced through the giving of something of value, such as money, to benefit the giver. Smith is guilty of soliciting a bribe and of bribery itself. Smith sought to obtain a bribe and this constituted the crime of bribery solicitation. When the money came forth and was accepted, the crime of receiving a bribe occurred. When additional sums of money were requested, based solely on the request and no actual violations, the crime of extortion (blackmail) was committed. Acting on his authority as a health inspector, Smith is threatening action not based on violations, but rather by greed. Slick is guilty of bribery of a public official to escape the payment of fines and damage to reputation that are the results of health code violations.
60. Sally operates a large manufacturing firm near a federal land preserve known for its waterfowl and fauna. The federal government has just filed suit against Sally and her corporation, charging them with criminal violations of various environmental protection statutes. What rights do Sally and her corporation have that are guaranteed under the United States Constitution?
ANSWER: The Fourth Amendment requirement that a search warrant be issued before any search is conducted applies both to Sally's property and to that of the corporation. The Fifth Amendment right against self-incrimination applies to Sally, but not the corporation. Further, both Sally and the business organization are entitled to due process.
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