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 persons 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.