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Business Law
Chapter 7Criminal Law
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ObjectivesExplain the difference between crimesand other types of wrongful conduct
Indicate the essential elements ofcriminal liability
Describe the constitutional safeguardsthat protect the rights of personsaccused of crimes
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Objectives
Define the crimes that affect
businessSummarize the defenses to
criminal liability
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Criminal LawCrime
A wrong against society proclaimed in astatute and , if committed, punishable by
society through fines and/or
imprisonment---and, in some cases,
death.
Prosecuted by the state
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Classification of CrimesFelonies
Serious crimes punishable by death or byimprisonment in a federal or statepenitentiary for more than a year
Misdemeanors
Crimes punishable by a fine or byconfinement for up to a year
Local jail
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Criminal Liability
Two elements must exist for
convictionThe performance of a prohibited act
A specified state of mind or intent on
the part of the actor
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Criminal Act
Most crimes require an act of
commission
An act of omissioncan be a crime
when a person has a legal duty to
perform the omitted act.
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Intent to Commit a Crime
A wrongful mental state is as
necessary as a wrongful act inestablishing criminal liability
Varies according to the wrongful
action
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Constitutional Safeguards
Fourth Amendment
Protection from unreasonablesearches and seizures
No warrants for a search or an arrest
can be issued without probable cause
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Constitutional SafeguardsFifth Amendment
No one can be deprived of life,liberty, or property without dueprocess of law.
Prohibition against double jeopardyNo person can be required to be awitness against himself or herself
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Constitutional SafeguardsSixth Amendment
Guarantees of a speedy trial, trial by jury,a public trial, the right to confront
witnesses, and the right to a lawyer
Eighth AmendmentProhibitions against excessive bail and
fines and cruel and unusual punishment
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The Exclusionary RuleAll evidence obtained in violation of
the constitutional rights spelled out inthe Fourth, Fifth, and Sixth
Amendments normally must be
excluded, as well as all evidencederived from the illegally obtained
evidence
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Informing Suspects of RightsIndividuals who are arrested must be
informed of certain constitutionalrights
If not, any statement the suspect makes
will not be admissible in court
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Crimes Affecting BusinessForgery
RobberyLarceny
Embezzlement
Mail and Wire FraudComputer Crime
Bribery
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ForgeryThe fraudulent making or altering of
any writing in a way that changes thelegal rights and liabilities of another
Changing trademarks, falsifying public
records, counterfeiting, and altering alegal document
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Robbery
Forcefully and unlawfully taking
personal property of any valuefrom another
Force or intimidation necessary
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LarcenyThe wrongful taking and carrying
away of another persons personalproperty with the intent to permanently
deprive the owner of the property.
Picking pockets, stealing computerprograms, computer time
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Embezzlement
The fraudulent appropriation of
money or other property by aperson to whom the money or
property has been entrusted.
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Mail and Wire FraudMail Fraud Act of 1990federal crimeto use the mails to defraud the public
Mailing or causing someone else tomail a writing for the purpose ofexecuting a scheme to fraud
A contemplated or an organizedscheme to defraud by false pretenses
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Computer Crime
Any act that is directed against
computers and computer parts, thatuses computers as instruments of
crime, or that involves computers
and constitutes abuse.
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Computer CrimeFinancial crimes
Software piracy
Property theft
Vandalism and destructive programming
Theft of data or services
Detection and Prosecution
Counterfeit Access Device and Computer Fraudand Abuse Act of 1984
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BriberyBribery of Public Officials
Commission occurs when bribe is offered
Commercial Bribery
To obtain proprietary information, cover upinferior product, secure new business(kickbacks, payoffs)
Bribery of Foreign Officials
Foreign Corrupt Practices Act of 1977
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RICOThe Racketeer Influenced and
Corrupt Organizations ActTo curb entry of organized crime
into the legitimate business world
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Racketeering ActivityGambling
ArsonExtortion
Securities fraudMail fraud
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DefensesInfancy
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
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DefensesEntrapment
The defendant claims that he or she was
induced by a public official to commit a crimethat he or she would otherwise not havecommitted.
Immunity
The state can grant immunity from prosecutionor agree to prosecute for a less serious offensein exchange for information.