Business Law

Chapter 7
Criminal Law
 Objectives
Explain the difference between crimes
and other types of wrongful conduct
Indicate the essential elements of
criminal liability
Describe the constitutional safeguards
that protect the rights of persons
accused of crimes
 Objectives
Define the crimes that affect
business
Summarize the defenses to
criminal liability
 Criminal Law
Crime
A wrong against society proclaimed in a
statute and , if committed, punishable by
society through fines and/or
imprisonment---and, in some cases,
death.
Prosecuted by the state
 Classification of Crimes
Felonies
Serious crimes punishable by death or by
imprisonment in a federal or state
penitentiary for more than a year
Misdemeanors
Crimes punishable by a fine or by
confinement for up to a year
Local jail
 Criminal Liability
Two elements must exist for
conviction
The performance of a prohibited act
A specified state of mind or intent on
the part of the actor
 Criminal Act
Most crimes require an act of
commission
An act of omission can be a crime
when a person has a legal duty to
perform the omitted act.
 Intent to Commit a Crime
A wrongful mental state is as
necessary as a wrongful act in
establishing criminal liability
Varies according to the wrongful
action
 Constitutional Safeguards
Fourth Amendment
Protection from unreasonable
searches and seizures
No warrants for a search or an arrest
can be issued without probable cause
 Constitutional Safeguards
Fifth Amendment
No one can be deprived of “life,
liberty, or property without due
process of law.”
Prohibition against double jeopardy
No person can be required to be a
witness against himself or herself
 Constitutional Safeguards
Sixth Amendment
Guarantees of a speedy trial, trial by jury,
a public trial, the right to confront
witnesses, and the right to a lawyer
Eighth Amendment
Prohibitions against excessive bail and
fines and cruel and unusual punishment
 The Exclusionary Rule
All evidence obtained in violation of
the constitutional rights spelled out in
the Fourth, Fifth, and Sixth
Amendments normally must be
excluded, as well as all evidence
derived from the illegally obtained
evidence
Informing Suspects of Rights
Individuals who are arrested must be
informed of certain constitutional
rights
If not, any statement the suspect makes
will not be admissible in court
 Crimes Affecting Business
Forgery
Robbery
Larceny
Embezzlement
Mail and Wire Fraud
Computer Crime
Bribery
 Forgery
The fraudulent making or altering of
any writing in a way that changes the
legal rights and liabilities of another
Changing trademarks, falsifying public
records, counterfeiting, and altering a
legal document
 Robbery
Forcefully and unlawfully taking
personal property of any value
from another
Force or intimidation necessary
 Larceny
The wrongful taking and carrying away
of another person’s personal property
with the intent to permanently deprive
the owner of the property.
Picking pockets, stealing computer
programs, computer time
 Embezzlement
The fraudulent appropriation of
money or other property by a
person to whom the money or
property has been entrusted.
 Mail and Wire Fraud
Mail Fraud Act of 1990 – federal crime
to use the mails to defraud the public
Mailing or causing someone else to
mail a writing for the purpose of
executing a scheme to fraud
A contemplated or an organized
scheme to defraud by false pretenses
 Computer Crime
Any act that is directed against
computers and computer parts, that
uses computers as instruments of
crime, or that involves computers
and constitutes abuse.
 Computer Crime
Financial crimes
Software piracy
Property theft
Vandalism and destructive programming
Theft of data or services
Detection and Prosecution
Counterfeit Access Device and Computer Fraud
and Abuse Act of 1984
 Bribery
Bribery of Public Officials
Commission occurs when bribe is offered
Commercial Bribery
To obtain proprietary information, cover up
inferior product, secure new business
(kickbacks, payoffs)
Bribery of Foreign Officials
Foreign Corrupt Practices Act of 1977
 RICO
The Racketeer Influenced and
Corrupt Organizations Act
To curb entry of organized crime
into the legitimate business world
 Racketeering Activity
Gambling
Arson
Extortion
Securities fraud
Mail fraud
 Defenses
Infancy
Any person who has not reached the age of
majority
Tried in special courts
If guilty of a felony, usually 14 years of age
Insanity
The person lacked the capacity to appreciate the
wrongfulness of the conduct
 Defenses
Entrapment
The defendant claims that he or she was
induced by a public official to commit a crime
that he or she would otherwise not have
committed.
Immunity
The state can grant immunity from prosecution
or agree to prosecute for a less serious offense
in exchange for information.