The Legal Environment of Business 11th Edition by Roger E. Meiners – Test Bank

Complete Test Bank With Answers

 

 

Sample Questions Posted Below

 

Criminal Law and Business 5-1

Chapter 5

Criminal Law and Business

TEST BANK

1. As discussed in the chapter, which would be the best definition of crime:

a. an act that violates the right of another citizen or group of citizens

b. a positive or negative act that is an offense against a state or federal government

c. an act that “shocks the conscience of the court”

d. an offense against rules of behavior prescribed in the constitution of a state or the nation

e. none of the other choices

ANSWER: b (page 118)

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2. As discussed in the chapter, which would be the best definition of crime:

a. an act that violates the right of another citizen or group of citizens

b. an act that violates secure common law rights

c. an act that “shocks the conscience of the court”

d. an offense against rules of behavior prescribed in the constitution of a state or the nation

e. none of the other choices

ANSWER: e (page 118)

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3. A positive or negative act that is an offense against a state or federal government is a(n):

a. crime

b. stare decisis

c. offensive gesture

d. offensive action

e. illegal action

ANSWER: a (page 118)

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4. Criminal codes:

a. define the scope of offenses against the public

b. define the scope of offenses against defendants

c. define the scope of defenses against the public

d. define the scope of offenses minors can commit

e. define the scope of defenses that may be used in court

ANSWER: a (page 118)

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5. Criminal codes:

a. define the scope of defenses that may be used in court

b. define the scope of offenses against defendants

c. define the scope of defenses against the public

d. define the scope of offenses minors can commit

e. none of the other choices are correct

ANSWER: e (page 118)

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6. Criminal law is:

a. primarily made up of statutes passed by Congress and state legislatures

b. primarily from common law

c. primarily from British law

d. primarily made up of statutes derived from International law

e. primarily made up of laws adapted from civil law

ANSWER: a (page 118)

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7. Criminal law is:

a. primarily made up of laws adapted from civil law

b. primarily from ancient Greek law

c. primarily from British law

d. primarily made up of statutes derived from International law

e. none of the other choices are correct

ANSWER: e (page 118)

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8. Each state has both:

a. a criminal code and a friendly codeCriminal Law and Business 5-3

b. a federal criminal code and a state criminal code

c. a civil code and a free code

d. a civil code and a law code

e. a federal criminal code and a county criminal code

ANSWER: b (page 118)

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9. Each state has both:

a. a criminal code and a nice code

b. a federal criminal code and a county criminal code

c. a civil code and a free code

d. a civil code and a law code

e. none of the other choices are correct

ANSWER: e (page 118)

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10.Crimes and punishments are:

a. determined by statues passed by federal and state legislatures

b. determined by statues passed by federal and state courts

c. determined by statues passed by federal and state judges

d. determined by statues passed by state executives

e. determined by statues voted on by federal executives

ANSWER: a (page 118)

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11.Crimes and punishments are:

a. determined by statues voted on by federal executives

b. determined by statues passed by federal and state courts

c. determined by statues passed by federal and state judges

d. determined by statues passed by state executives

e. none of the other choices are correct

ANSWER: e (page 118)

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12.The determination of what are crimes and the kinds of punishments is limited by:

a. federal norms

b. state norms

c. international protocols

d. federal and state constitutions

e. federal and state officials

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ANSWER: d (page 118)

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13.The determination of what are crimes and the kinds of punishments are is limited by:

a. federal norms

b. state norms

c. international protocols

d. federal and state administrative rules

e. none of the choices are correct

ANSWER: e (page 118)

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14.Federal and state constitutions:

a. set limits on crimes and punishments

b. limit the determination of what civil laws are

c. increase federal power at the expense of personal freedom

d. set limits on how many charges may be brought against a business

e. none of the other choices are correct

ANSWER: a (page 118)

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15.Federal and state constitutions:

a. limit the number of years chief magistrates can serve

b. limit the determination of what civil laws are

c. increase federal power at the expense of personal freedom

d. set limits on how many charges may be brought against a business

e. none of the other choices are correct

ANSWER: e (page 118)

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16.In the United States, only _____________ can bring criminal charges.

a. public institutions

b. private citizens

c. the government

d. the Supreme Court

e. private investigators

ANSWER: c (page 118)

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17.In the United States, only _____________ can bring criminal charges.

a. public institutions

b. private citizens

c. private investigators

d. the Supreme Court

e. none of the other choices are correct

ANSWER: e (page 118)

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18. Unlike in the United States, in Britain:

a. private individuals cannot bring criminal charges against others

b. private individuals can bring criminal charges against others

c. no one can bring criminal charges against others

d. minors cannot be tried in court

e. none of the other choices are correct

ANSWER: b (page 118)

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19.Unlike in the United States, in Britain:

a. private individuals cannot bring criminal charges against others

b. private corporations can bring civil charges against others

c. no one can bring criminal charges against others

d. minors cannot be tried in court

e. none of the other choices are correct

ANSWER: e (page 118)

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20.Which of the following can be a consequence of committing a crime:

a. being removed from public office

b. being disqualified from holding office

c. being disqualified from owning a firearm

d. being disqualified from voting in public elections

e. all of the other choices are correct

ANSWER: e (page 118)

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21.A felony is generally defined as a crime that:

a. may be punished by more than a year in prison

b. may be punished by the possibility of time in prison, not just a fine

c. violates a federal statute punishable by up to life in prison

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d. is classified as a class A offense of a state or federal statute

e. none of the other choices

ANSWER: a (page 118)

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22.A felony is generally defined as a crime that:

a. violates the “integrity of the law”

b. may be punished by the possibility of time in prison, not just a fine

c. violates a federal statute punishable by up to life in prison

d. is classified as a class A offense of a state or federal statute

e. none of the other choices are very good

ANSWER: e (page 118)

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23.A serious crime is a:

a. felony

b. misdemeanor

c. stare decisis

d. tort

e. bankruptcy

ANSWER: a (page 118)

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24.A serious crime is a:

a. bankruptcy

b. misdemeanor

c. stare decisis

d. tort

e. none of the other choices are correct

ANSWER: e (page 118)

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25.A misdemeanor is generally:

a. is not a crime

b. can only involve the violation of a state, not federal, statute

c. is an offense against the state that is not punishable by time in prison

d. is an offense that does not involve bodily harm to another person

e. is a crime punishable by less than a year in prison

ANSWER: e (page 118)Criminal Law and Business 5-7

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26.A misdemeanor is generally:

a. is not a crime

b. can only involve the violation of a state, not federal, statute

c. is an offense against the state that is not punishable by time in prison

d. is an offense that does not involve bodily harm to another person

e. none of the other choices are accurate

ANSWER: e (page 118)

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27.A crime that is punishable by less than a year in prison is a:

a. misdemeanor

b. felony

c. assault

d. tort

e. none of the other specific choices are correct

ANSWER: a (page 118)

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28.Another term for misdemeanor is:

a. small crime

b. civil crime

c. penal crime

d. petty offense

e. petty crime

ANSWER: d (page 118)

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29.Another term for misdemeanor is:

a. small crime

b. civil crime

c. penal crime

d. petty misdemeanor

e. none of the other specific choices are correct

ANSWER: e (page 118)

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30.Which of the following would not be likely to be considered to be a violent crime:

a. assault

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b. robbery

c. murder

d. burglary

e. all of the other choices are classified as violent felonies

ANSWER: d (page 119)

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31.Which of the following would not be likely to be considered to be a violent crime:

a. assault

b. robbery

c. murder

d. rape

e. all of the other choices are classified as violent felonies

ANSWER: e (page 119)

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32.Misdemeanors, by definition, may:

a. result in jail time

b. result only in a fine

c. be classified as a Class C felony

d. not involve harm to persons, only to property

e. none of the other choices

ANSWER: a (page 119)

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33.Misdemeanors, by definition, may:

a. only be defined by federal legislation

b. result only in a fine

c. be classified as a Class C felony

d. not involve harm to persons, only to property

e. none of the other choices

ANSWER: e (page 119)

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34.In a victimless crime:

a. no other party is injured

b. only one other party is injured

c. there are no fatalities, but there can be injuries

d. there are no minors involved

e. none of the other specific choices are correctCriminal Law and Business 5-9

ANSWER: a (page 119)

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35.In a victimless crime:

a. there are no illegal drugs involved

b. only one other party is injured

c. there are no fatalities, but there can be injuries

d. there are no minors involved

e. none of the other specific choices are correct

ANSWER: e (page 119)

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36.Illegal drug possession is an example of what is often called:

a. legal activity

b. a violent crime

c. a victimless crime

d. a minor misdemeanor

e. a civil code violation

ANSWER: c (page 119)

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37.Victimless crimes can be:

a. felonies or misdemeanors

b. only felonies

c. only misdemeanors

d. tried in special courts

e. none of the other specific choices are correct

ANSWER: a (page 119)

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38.Victimless crimes cannot be:

a. felonies

b. misdemeanors

c. tried in court

d. tried by the Supreme Court

e. none of the other specific choices are correct

ANSWER: e (page 119)

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39.The classification of felonies:

a. makes them easier to remember

b. indicates the severity of the criminal charge

c. is a remnant of the British system

d. is a remnant of the colonial system

e. is specified in the Declaration of Independence

ANSWER: b (page 119)

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40.First degree murder is:

a. a misdemeanor

b. less serious than second degree murder

c. more serious than second degree murder

d. spontaneous

e. punishable only by a fine

ANSWER: c (page 119)

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41.Second degree murder is:

a. a misdemeanor

b. less serious than first degree murder

c. more serious than first degree murder

d. spontaneous

e. punishable only by a fine

ANSWER: b (page 119)

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42.A violent crime is:

a. one in which physical force is used

b. one in which no physical force is used

c. one in which no other party is harmed

d. one in which no minors are involved

e. none of the other choices are correct

ANSWER: a (page 119)

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43.A violent crime is:

a. one in which a private citizen bring charges against the government

b. one in which no physical force is used

c. one in which no other party is harmed

d. one in which no minors are involvedCriminal Law and Business 5-11

e. none of the other choices are correct

ANSWER: e (page 119)

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44.The violation of an ordinance:

a. must be defined by Congress

b. generally means there may be a fine and up to one year in prison

c. generally means there may be a fine, but no prison time

d. generally means a citation, but no fine or prison time

e. none of the other choices

ANSWER: c (page 119)

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45.The violation of an ordinance:

a. must be defined by Congress

b. generally means there may be a fine and up to one year in prison

c. can be established by the police without need for a court decision

d. generally means a citation, but no fine or prison time

e. none of the other choices

ANSWER: e (page 119)

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46.Rules governing such matters as building regulations and zoning are called:

a. federal administrative rules

b. federal statutes

c. misdemeanors

d. local ordinances

e. none of the other choices

ANSWER: d (page 119)

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47.Criminal offenses are defined by:

a. governors or the president

b. legislatures

c. courts of appeal or supreme courts

d. magistrates

e. all of the other choices may make such decisions

ANSWER: b (page 119)

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48.Criminal offenses are defined by:

a. governors or the president

b. police departments

c. courts of appeal or supreme courts

d. magistrates

e. none of the other choices are very good

ANSWER: e (page 119)

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49.Which of the following is an example of a white-collar crime:

a. embezzlement

b. bribery

c. fraud

d. violation of securities law

e. all of the other specific choices are correct

ANSWER: e (page 119)

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50.After receiving reports from the police or other investigators prosecutors:

a. decide whether or not to bring charges

b. decide who is guilty

c. decide how much the guilty party should be fined

d. decide who will represent the plaintiff

e. none of the other choices are correct

ANSWER: a (page 120)

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51.It is difficult to keep politics out of decisions about which crimes to prosecute because:

a. many state and local prosecutors are political positions

b. many state prosecutors have been shown to take bribes

c. many police fail to report crimes

d. judges are worried about getting reelected

e. none of the other choices are correct

ANSWER: a (page 120)

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52.For a criminal conviction, it must be shown that the accused was found to have:

a. actus rea

b. res ipsa loquitorCriminal Law and Business 5-13

c. mens rea

d. intentional negligence

e. demurrer

ANSWER: c (page 120)

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53.For a criminal conviction, it must be shown that the accused was found to have:

a. actus rea

b. res ipsa loquitor

c. demurrer

d. intentional negligence

e. none of the other choices

ANSWER: e (page 120)

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54.When one commits a criminal act, that wrongful deed is:

a. mens rea

b. intentional negligence

c. res ipsa loquitor

d. actus reus

e. none of the other choices

ANSWER: d (page 120)

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55.When one commits a criminal act, that wrongful deed is:

a. mens rea

b. intentional negligence

c. res ipsa loquitor

d. demurrer

e. none of the other choices

ANSWER: e (page 120)

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56.An actus reus is:

a. a wrongful deed

b. a nice deed

c. an active deed

d. a civil crime

e. a civil violation

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ANSWER: a (page 120)

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57.An actus reus is:

a. a civil violation

b. a nice deed

c. an active deed

d. a civil crime

e. none of the other choices are correct

ANSWER: e (page 120)

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58.Mens rea is:

a. criminal intent

b. criminal guilt

c. final judgment

d. thoughtful crime

e. none of the other choices are correct

ANSWER: a (page 120)

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59.Mens rea is:

a. criminal reason

b. criminal guilt

c. final judgment

d. thoughtful crime

e. none of the other choices are correct

ANSWER: e (page 120)

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60.If the government can prove beyond a reasonable doubt that 1) the accused committed the illegal

act, and 2) that there was necessary intent or state of mind to commit the act then:

a. the accused will be convicted of the crime

b. the accused might be convicted of the crime

c. the plaintiff will lose the case

d. the case may go to trial

e. the accused will not get a lawyer

ANSWER: a (page 120)

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61.Criminal acts:

a. need not be planned

b. must be premeditated

c. must be tried within a month of being committed

d. must be tried by at least 5 judges

e. need not be illegal

ANSWER: a (page 120)

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62.What is defined as a degree of careless amounting to a culpable disregard of rights and safety of

others:

a. felony

b. criminal negligence

c. misdemeanor

d. ordinance violation

e. none of the other choices

ANSWER: b (page 120)

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63.What is defined as a degree of careless amounting to a culpable disregard of rights and safety of

others:

a. felony

b. Class B acts

c. misdemeanor

d. ordinance violation

e. none of the other choices

ANSWER: e (page 120)

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64.Which of the following is correct:

a. criminal acts must be planned

b. criminal conduct must be intentional

c. criminal conduct may arise from carelessness

d. criminal conduct must involve actus rea

e. none of the other choices

ANSWER: c (page 120)

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65.Which of the following is correct:

a. criminal acts must be planned

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b. criminal conduct must be intentional

c. criminal conduct cannot involve drunkenness

d. criminal conduct must involve actus rea

e. none of the other choices

ANSWER: e (page 120)

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66.If someone is very drunk and then, only because of their drunkenness, causes a fatal accident:

a. there can be no crime because there was no willful consent

b. there can be no crime because there was no mens rea

c. there can be no crime because there was no culpable disregard for the rights of others

d. there can be a crime because there was criminal negligence

e. none of the other choices

ANSWER: d (page 120)

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67.In Commonwealth v. Angelo Todesca Corp. where Angelo Todesco Corporation was charged

with motor vehicle homicide after an employee accidentally killed a police officer with a

dump truck, the Massachusetts supreme court held that:

a. a corporation should be charge, rather than its agents

b. a corporation cannot act through its agents

c. a corporation can only act though its agents

d. a corporation cannot be held liable for the actions of its agents

e. none of the other choices are correct

ANSWER: c (page 121)

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68.In Commonwealth v. Angelo Todesca Corp. where Angelo Todesco Corporation was charged

with motor vehicle homicide after an employee accidentally killed a police officer with a

dump truck, the Massachusetts supreme court held that:

a. a corporation may be criminally liable for violation of a traffic statute

b. a corporation may not be criminally liable for violation of a traffic statute

c. an individual may not be criminally liable for violation of a traffic statute

d. an individual may not be civilly liable for a violation of a traffic statute

e. none of the other choices are correct

ANSWER: a (page 121)

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69.The 1966 Supreme Court opinion relating to the Miranda rights holds that:

a. persons accused of a crime must be informed of their right to remain silent

b. persons accused of a crime must be informed of their right to be represented by counselCriminal Law and Business 5-17

c. persons accused of a crime must be informed that statements they make can be used as

evidence against them

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 121)

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70.The 1966 Supreme Court opinion relating to the Miranda rights holds that:

a. persons accused of a crime must be informed that they must answer all questions

b. persons accused of a crime must be informed that they have no right to be represented

c. persons accused of a crime must be informed that statements they make can be used as

evidence against them

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: c (page 121)

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71.The 1966 Supreme Court opinion relating to the Miranda rights holds that:

a. persons accused of a crime must be informed that they must answer all questions

b. persons accused of a crime must be informed that they have no right to be represented

c. persons accused of a crime must be informed of their right to be represented by counsel

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: c (page 121)

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72.Miranda rights for those arrested and accused of or suspected of a crime do not include:

a. the right to be represented by counsel

b. the right to be released

c. being informed that statements made may be used against the accused

d. the right to remain silent

e. all of the other choices are included in the Miranda rights

ANSWER: b (page 121)

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73.If the government does not prosecute a criminal suspect the right to do so may be eliminated by:

a. the loss of evidence

b. res ipsa loquitor

c. loss of probable cause

d. statute of limitations

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e. none of the other choices

ANSWER: d (page 122)

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74.If a crime is not prosecuted within the time set by the __________________, then the state loses

the right to bring suit:

a. statute of limitations

b. statute of limited time

c. statute of dissipation

d. statute of prosecution

e. none of the other specific choices is correct

ANSWER: a (page 122)

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75.If a crime is not prosecuted within the time set by the __________________, then the state loses

the right to bring suit:

a. statute of probable cause

b. statute of limited time

c. statute of dissipation

d. statute of prosecution

e. none of the other specific choices is correct

ANSWER: e (page 122)

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76.The statute of limitations:

a. varies with time

b. varies by crime

c. varies by county

d. varies by state

e. varies by district

ANSWER: b (page 122)

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77.The statute of limitations:

a. varies with time

b. varies by district

c. varies by county

d. varies by state

e. none of the other specific choices are correct

ANSWER: e (page 122)Criminal Law and Business 5-19

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78.The statute of limitations for unsolved murders:

a. may never end

b. ends after 5 years by federal law

c. ends after 10 years by federal law

d. ends after 15 years by federal law

e. none of the other choices are correct

ANSWER: a (page 122)

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79.If the statute of limitations expires on the ability of the state to prosecute for a crime, it is said

that the statute has:

a. dissipated

b. tolled

c. departed

d. negated

e. none of the other choices

ANSWER: b (page 122)

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80.Defenses of insanity and intoxication in criminal cases:

a. are rarely successful

b. apply to about twenty percent of cases

c. are not allowed in Class A felony cases

d. are not allowed in misdemeanor cases

e. none of the other choices

ANSWER: a (page 122)

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81.If David flees the country to avoid being prosecuted for a crime:

a. the clock on the statute of limitations keeps running

b. the clock on the statute of limitations stops

c. he cannot be prosecuted

d. he loses his right to be represented by counsel

e. none of the other choices are correct

ANSWER: b (page 122)

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82.If Julia is accused of robbing a bank and she has witnesses testify that she was having her nails

done at the time the robbery took place then she is using a(n):

a. Miranda right

b. exclusionary rule

c. alibi

d. defensive defense

e. none of the other choices are correct

ANSWER: c (page 122)

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83.An alibi is an example of a:

a. Miranda right

b. defensive defense

c. affirmative defense

d. entrapment

e. exclusionary rule

ANSWER: c (page 122)

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84.Defenses of insanity and intoxication in criminal cases:

a. apply to about ten percent of cases

b. apply to about twenty percent of cases

c. are not allowed in Class A felony cases

d. are not allowed in misdemeanor cases

e. none of the other choices

ANSWER: e (page 122)

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85.In a criminal case, if evidence is not gathered properly, such as by a search that violates Fourth

Amendment rights, then at trial that evidence is:

a. allowed to be referred to but not presented directly

b. allowed only if probable cause is first established

c. dropped under the exclusionary rule

d. irrelevant since there can be no trial if there was an improper search

e. none of the other choices

ANSWER: c (page 123)

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86.In a criminal case, if evidence is not gathered properly, such as by a search that violates Fourth

Amendment rights, then at trial that evidence is:

a. allowed to be referred to but not presented directlyCriminal Law and Business 5-21

b. allowed only if probable cause is first established

c. allowed if found to be “critical to justice”

d. irrelevant since there can be no trial if there was an improper search

e. none of the other choices

ANSWER: e (page 123)

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87.If the chain of custody is broken when gathering evidence for a criminal case:

a. the evidence is excluded

b. the evidence is kept under special consideration

c. the evidence is more powerful

d. the evidence is less useful to the prosecution

e. the evidence is less useful to the defendant

ANSWER: a (page 123)

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88.Unjust searches are violations of:

a. privacy interests

b. the First Amendment

c. the Second Amendment

d. property interests

e. monetary interests

ANSWER: a (page 123)

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89.Unjust searches are unlawful because they are violations of:

a. privacy interests

b. the First Amendment

c. the Second Amendment

d. property interests

e. monetary interests

ANSWER: a (page 123)

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90.Under the exclusionary rule:

a. improperly gathered evidence may not be used at trial

b. properly gathered evidence is categorized by type

c. improperly gathered evidence is permitted if it is crucial to the case

d. improperly gathered evidence is permitted only under special circumstances

e. none of the other choices are correct

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ANSWER: a (page 123)

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91.Under the exclusionary rule:

a. improperly gathered evidence must be gathered again with proper techniques

b. properly gathered evidence is categorized by type

c. improperly gathered evidence is permitted if it is crucial to the case

d. improperly gathered evidence is permitted only under special circumstances

e. none of the other choices are correct

ANSWER: e (page 123)

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92.For the police to use a warrant to search for evidence they think may exist that is relevant to a

suspected criminal act:

a. the chief of police must issue a warrant for the officers to use

b. a judge must issue a warrant based on probable cause

c. no warrant is needed if the police determine probable cause exists

d. the district attorney must issue the police a warrant

e. none of the other choices

ANSWER: b (page 123)

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93.Probable cause is:

a. necessary to obtain a warrant

b. not necessary to obtain a warrant

c. important for the defense

d. cause for exclusion

e. none of the other choices are correct

ANSWER: a (page 123)

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94.In U.S. v. Young, where government agents put Federal Express packages to Young under an x-

ray to look at the contents, and he was convicted partly based on that evidence, the appeals

court held that:

a. the conviction was overturned because there was no warrant to x-ray the packages

b. the conviction was overturned because Federal Express violated customer privacy rights

c. the conviction was upheld because the severity of the crime outweighed the usual

requirement to obtain a warrant

d. the conviction was upheld because there was no need for a warrant

e. none of the other choicesCriminal Law and Business 5-23

ANSWER: d (page 123)

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95.In U.S. v. Young, where government agents put Federal Express packages to Young under an x-

ray to look at the contents, and he was convicted partly based on that evidence, the appeals

court held that:

a. the conviction was overturned because there was no warrant to x-ray the packages

b. the conviction was overturned because Federal Express violated customer privacy rights

c. the conviction was upheld because the severity of the crime outweighed the usual

requirement to obtain a warrant

d. the conviction was upheld because Young admitted to wrongdoing despite the improper

search

e. none of the other choices

ANSWER: e (page 123)

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96.In U.S. v. Young, where government agents put Federal Express packages to Young under an x-

ray to look at the contents, and he was convicted partly based on that evidence, the appeals

court held that:

a. there was no need for a warrant because Young assumed the risk that Federal Express

might consent to a search

b. there was a need for a warrant because Young assumed the risk that Federal Express might

consent to a search

c. there was no need for a warrant because Young did not assume the risk that Federal

Express might consent to a search

d. there was a need for a warrant because Young did not assume the risk that Federal Express

might consent to a search

e. none of the other choice are correct

ANSWER: a (page 123)

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97.You are arrested by the police, who suspect you of a crime:

a. the police decide if you will be charged with a crime

b. a government prosecutor will decide if you will be charged with a crime

c. a judge will decide if you will be charged with a crime

d. the police review board decide if you will be charged with a crime

e. none of the other choices

ANSWER: b (page 124)

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98.You are arrested by the police, who suspect you of armed robbery:

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a. the police decide if you will be charged with a crime

b. the attorney general will decide if you will be charged with a crime

c. a judge will decide if you will be charged with a crime

d. the police review board decide if you will be charged with a crime

e. none of the other choices

ANSWER: e (page 124)

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99.In cases where a person is charged with a felony:

a. there must be a grand jury indictment

b. there must be a grand jury indictment only if it is a federal case

c. there must be a grand jury indictment only if it is a state case

d. there need not be a grand jury indictment, but could be one

e. none of the other choices

ANSWER: d (page 124)

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100. In cases where a person is charged with a felony, if there is to be a trial:

a. there must be a grand jury indictment

b. there must be a grand jury indictment only if it is a federal case

c. there must be a grand jury indictment only if it is a state case

d. there must be a grand jury indictment if the crime carries the possibility of more than ten

years in prison

e. none of the other choices

ANSWER: e (page 124)

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101. A grand jury:

a. reviews potential felony cases

b. reviews past felony cases

c. reviews potential civil cases

d. reviews past civil cases

e. none of the other choices are correct

ANSWER: a (page 124)

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102. A grand jury:

a. determines probably cause

b. reviews past felony cases

c. determines guilt

d. determines how long the trial will takeCriminal Law and Business 5-25

e. none of the other choices are correct

ANSWER: a (page 124)

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103. When a person accused of a crime by the police makes an initial appearance in court and the

government attorney presents the criminal charges, it is called:

a. an indictment

b. a Miranda rights

c. an arraignment

d. a nolo contendere

e. a pleading

ANSWER: c (page 124)

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104. When a person accused of a crime by the police makes an initial appearance in court and the

government attorney presents the criminal charges, the court appearance is called:

a. an indictment

b. a Miranda rights

c. a pleading

d. a nolo contendere

e. none of the other choices

ANSWER: e (page 124)

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105. The initial court appearance for a person accused of a crime during which the government

attorney presents the criminal charges is called:

a. nolo contendere

b. an appearance

c. an arraignment

d. a demurrer

e. an indictment

ANSWER: c (page 124)

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106. The initial court appearance for a person accused of a crime during which the government

attorney presents the criminal charges is called:

a. nolo contendere

b. an appearance

c. an indictment

d. a demurrer

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.5-26 Test Bank

e. none of the other choices are correct

ANSWER: e (page 124)

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107. If one appears before a judge when accused of a crime and enters a plea in response to the

charges, the choice of pleas made does not include:

a. guilty

b. nolo contendere

c. not guilty

d. demurrer

e. all of the other choices are possible pleas

ANSWER: d (page 124)

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108. Nolo contendere means:

a. no contest

b. guilty

c. innocent

d. contested

e. none of the other choices are correct

ANSWER: a (page 124)

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109. Nolo contendere means:

a. no trial

b. guilty

c. innocent

d. contested

e. none of the other choices are correct

ANSWER: e (page 124)

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110. A settlement conference is:

a. an attempt to resolve a matter without trial, but under the supervision of a judge

b. an attempt to resolve a matter without trial and without a judge

c. an attempt to pay off the defendant

d. an attempt to offer the prosecution money to make them drop the case

e. none of the other choices are correct

ANSWER: a (page 125)Criminal Law and Business 5-27

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111. A settlement conference is:

a. an attempt to resolve a matter with a short trial

b. an attempt to resolve a matter without trial and without a judge

c. an attempt to pay off the defendant

d. an attempt to offer the prosecution money to make them drop the case

e. none of the other choices are correct

ANSWER: e (page 125)

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112. If a person is charged with a crime, rather than going through trial, there is often an

agreement reached by the defendant and prosecutor that is called:

a. an arraignment

b. nolo contendere

c. demurrer

d. plea bargain

e. none of the other choices

ANSWER: d (page 125)

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113. A plea bargain allows:

a. a matter to be settled under the supervision of a judge without a trial

b. a matter to be settled by a jury without a trial

c. a matter to be settled with a short trial

d. a matter to be settled by the attorneys without the supervision of a judge

e. none of the other choices are correct

ANSWER: a (page 125)

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114. In contrast to civil trial discovery proceedings, criminal discovery proceedings:

a. focus on reducing surprises

b. focus on reversing verdicts

c. focus on making all parties comfortable

d. involve disclosing only a subset of information to the other side

e. involve disclosing everything to the other side

ANSWER: d (page 125)

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115. Under the Constitution, any exculpatory evidence:

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a. must be disclosed to the defendant

b. must not be disclosed to the defendant

c. must be disclosed to the judge before the trial

d. must be formally written

e. must be recorded in front of a notary

ANSWER: a (page 125)

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116. Under the Constitution, any _____________ must be disclosed to the defendant.

a. false evidence

b. important evidence

c. exculpatory evidence

d. illegally collected evidence

e. none of the other choices are correct

ANSWER: c (page 125)

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117. Under the Constitution, any _____________ must be disclosed to the defendant.

a. false evidence

b. important evidence

c. incriminating evidence

d. illegally collected evidence

e. none of the other choices are correct

ANSWER: e (page 125)

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118. Exculpatory evidence is evidence which:

a. might show that the defendant is guilty

b. might show that the defendant is not guilty

c. will not show that the defendant is not guilty

d. makes the prosecution look bad

e. makes the prosecution look good

ANSWER: b (page 125)

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119. In a criminal case the defendant:

a. has no obligation to disclose evidence to the prosecution that shows the defendant is guilty

b. has an obligation to disclose evidence to the prosecution that shows the defendant is guilty

c. has an obligation to disclose evidence to the prosecution that shows the prosecution is

guilty

d. has to present all incriminating evidence to the juryCriminal Law and Business 5-29

e. none of the other choices are correct

ANSWER: a (page 125)

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120. In a criminal trial, to be found guilty, the standard is guilt:

a. by a preponderance of the evidence

b. by a convincing majority of the evidence

c. beyond a reasonable doubt

d. upon the word of the court

e. none of the other choices

ANSWER: c (page 126)

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121. In a criminal trial, to be found guilty, the standard is guilt:

a. by a preponderance of the evidence

b. by a convincing majority of the evidence

c. res ipsa loquitor

d. upon the word of the court

e. none of the other choices

ANSWER: e (page 126)

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122. In a criminal case, “beyond a reasonable doubt” means that:

a. the evidence is good enough to hold up in a civil trial

b. the evidence would convince an uneducated person of the defendant’s guilt

c. the evidence fully satisfies and convinces the court to a moral certainty

d. the evidence partially satisfies and convinces the court to a moral certainty

e. none of the other choices are correct

ANSWER: c (page 126)

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123. A mistrial is when:

a. evidence is not properly collected and so cannot be used in court

b. evidence is presented without proper documentation

c. the jury cannot agree on a verdict

d. the judge decides on a verdict that is different than the verdict given by the jury

e. none of the other choices are correct

ANSWER: c (page 126)

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124. If the jury cannot decide on a verdict then a __________ is declared.

a. mistrial

b. false trial

c. hung trial

d. maltrial

e. lost trial

ANSWER: a (page 126)

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125. If the jury cannot decide on a verdict then a __________ is declared.

a. lost trial

b. false trial

c. hung trial

d. maltrial

e. none of the other choices are correct

ANSWER: e (page 126)

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126. A white collar crime means:

a. one in violation of Section 1981 of the U.S. Code

b. one in violation of several different portions of the U.S. Code

c. any number of crimes committed by person of respectability in their occupation

d. a business-related crime that is defined as a felony

e. none of the other choices

ANSWER: c (page 127)

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127. Which of the following would not be considered to be white collar crime:

a. bankruptcy fraud

b. embezzlement

c. burglary

d. insider trading

e. wire fraud

ANSWER: c (page 127)

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128. Which of the following would not be considered to be white collar crime:

a. bankruptcy fraud

b. embezzlementCriminal Law and Business 5-31

c. wire fraud

d. insider trading

e. all of the other choices would be white collar crimes

ANSWER: e (page 127)

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129. The Sherman Act and Clayton Act (2004) allow prison terms to be imposed on:

a. those involved in burglaries

b. those involved in anticompetitive practices

c. those involved in blue collar crime

d. those involved in drug trafficking

e. none of the other choices are correct

ANSWER: b (page 127)

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130. In recent years antitrust prosecutions have:

a. remained at low levels

b. increased

c. decreased

d. decreased in most areas of the country, but risen in New York and California

e. none of the other choices are correct

ANSWER: b (page 128)

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131. When a person or corporation hides or lies about assets in bankruptcy proceedings it is

called:

a. bribery

b. embezzlement

c. bankruptcy fraud

d. racketeering

e. financial fraud

ANSWER: c (page 128)

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132. When a person or corporation hides or lies about assets in bankruptcy proceedings it is

called:

a. bribery

b. embezzlement

c. financial fraud

d. racketeering

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e. none of the other choices are correct

ANSWER: e (page 128)

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133. Bankruptcy fraud occurs when:

a. a person or corporation hides or lies about assets in bankruptcy proceedings

b. creditors are given false information

c. illegal pressure is applied to bankruptcy petitioners

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 128)

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134. The offer or taking of money, goods or other things of value to influence official actions is:

a. bribery

b. economic espionage

c. embezzlement

d. financial fraud

e. racketeering

ANSWER: a page (128)

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135. Bribery is:

a. the offer or taking of money, goods or other things of value to influence official actions

b. illegal pressure on debtors

c. economic espionage

d. legal in some states

e. all of the other choices are correct

ANSWER: a (page 128)

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136. The copying of a genuine item without authorization, especially when passed off as the

original item is:

a. economic espionage

b. fraud

c. counterfeiting

d. insider trading

e. none of the other choices

ANSWER: c page (128)Criminal Law and Business 5-33

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137. The copying of a genuine item without authorization, especially when passed off as the

original item is:

a. economic espionage

b. fraud

c. racketeering

d. insider trading

e. none of the other choices

ANSWER: e page (128)

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138. Counterfeiting is:

a. the copying of a genuine item without authorization, especially when passed off as the

original item

b. always more serious than economic espionage

c. legal with the proper permits

d. a crime only when it involves copying a product designed in the United States

e. all of the other specific choices are correct

ANSWER: a (page 128)

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139. Credit card fraud is:

a. the unauthorized use of a credit card to obtain goods, services, or cash

b. the authorized use of a credit card to obtain goods, services, or cash by a minor

c. the copying of a genuine item without authorization

d. using a false ID to obtain a credit card

e. none of the other choices are correct

ANSWER: a (page 128)

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140. The unauthorized use of a credit card to obtain goods, services, or cash is:

a. credit card fraud

b. economic espionage

c. identity fraud

d. consumer fraud

e. embezzlement

ANSWER: a (page 128)

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141. The unauthorized use of a credit card to obtain goods, services, or cash is:

a. embezzlement

b. economic espionage

c. identity fraud

d. consumer fraud

e. none of the other choices are correct

ANSWER: e (page 128)

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142. Computer and internet fraud involves:

a. pornography

b. unauthorized use of computers and computer files

c. tax evasion

d. consumer fraud

e. none of the other choices are correct

ANSWER: b (page 128)

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143. The theft of valuable business information, such as a trade secret is:

a. embezzlement

b. economic espionage

c. internet fraud

d. insider trading

e. none of the other choices

ANSWER: b (page 129)

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144. The theft of valuable business information, such as a trade secret is:

a. embezzlement

b. racketeering

c. internet fraud

d. insider trading

e. none of the other choices

ANSWER: e (page 129)

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145. Economic espionage is:

a. the theft of valuable business information

b. the theft of personal information

c. unauthorized use of company computers

d. insider tradingCriminal Law and Business 5-35

e. giving false information to clients

ANSWER: a (page 129)

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146. Economic espionage is:

a. giving false information to clients

b. the theft of personal information

c. unauthorized use of company computers

d. insider trading

e. none of the other choices are correct

ANSWER: e (page 129)

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147. When someone is in a position of trust with money and they take it for their use, it is:

a. embezzlement

b. insider trading

c. racketeering

d. economic espionage

e. none of the other choices

ANSWER: a (page 129)

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148. When someone is in a position of trust with money and they take it for their use, it is:

a. money laundering

b. insider trading

c. racketeering

d. economic espionage

e. none of the other choices

ANSWER: e (page 129)

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149. Embezzlement is when:

a. someone is in a position of trust with money and they take it for their use

b. someone gives detailed manufacturing information to competitors

c. someone leaks information to the press

d. someone accepts a bribe in return for services

e. someone donates money illegally to a political campaign

ANSWER: a (page 129)

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150. Embezzlement is when:

a. someone donates money illegally to a political campaign

b. someone gives detailed manufacturing information to competitors

c. someone leaks information to the press

d. someone accepts a bribe in return for services

e. none of the other choices are correct

ANSWER: e (page 129)

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151. Indiscriminate hazardous waste dumping, illegal handling of hazardous substances and

international smuggling of CFC refrigerants are all examples of:

a. environmental law violations

b. civil torts

c. civil violations

d. environmental procedure violations

e. green violations

ANSWER: a (page 129)

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152. Financial fraud occurs when:

a. someone uses a false social security number to get a credit card

b. someone is refused a loan because of their race

c. someone is refused a loan because of a previous criminal conviction

d. someone commits fraud in loans, financial documents or mortgages

e. none of the other choices are correct

ANSWER: d (page 130)

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153. Improperly collecting benefits intended for victims of a natural disaster, such as Hurricane

Katrina, is an example of:

a. embezzlement

b. insider trading

c. money laundering

d. personal fraud

e. government fraud

ANSWER: e (page 130)

National: AACSB Analytic; Communication; AICPA BB-Legal154. Criminal Law and Business 5-37

Improperly collecting benefits intended for victims of a natural disaster, such as Hurricane

Katrina, is an example of:

a. embezzlement

b. insider trading

c. money laundering

d. personal fraud

e. none of the other choices are correct

ANSWER: e (page 130)

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155. Healthcare fraud involves:

a. malpractice

b. under qualified doctors charging rates too high given the market value of their services

c. over-billing by hospitals, doctors, ambulance services, laboratories, and pharmacies

d. ambulance chasing attorneys

e. none of the other choices are correct

ANSWER: c (page 130)

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156. When a person deals in a security when in possession of non-public information, and they

have an obligation not to reveal or use the information it is:

a. embezzlement

b. racketeering

c. money laundering

d. insider trading

e. money fraud

ANSWER: d (page 130)

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157. When a person deals in a security when in possession of non-public information, and they

have an obligation not to reveal or use the information it is:

a. embezzlement

b. racketeering

c. money laundering

d. money fraud

e. none of the other choices

ANSWER: e (page 130)

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158. When a insurance policy holder lies about the condition of their property to get lower rates it

is an example of:

a. insurance fraud

b. banking fraud

c. embezzlement

d. money fraud

e. money laundering

ANSWER: a (page 130)

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159. When a insurance policy holder lies about the condition of their property to get lower rates it

is an example of:

a. money laundering

b. banking fraud

c. embezzlement

d. money fraud

e. none of the other choices are correct

ANSWER: e (page 130)

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160. A company bids on projects and submits false information in the bids in order to help win the

bids. When this “scheme or artifice” occurs, there would most likely be a conviction for:

a. money laundering

b. mail fraud

c. insider trading

d. embezzlement

e. none of the other choices

ANSWER: b (page 131)

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161. Sending materials containing false information through the post office can lead to a

conviction of:

a. embezzlement

b. money laundering

c. mail fraud

d. insider trading

e. false representation

ANSWER: c (page 131)

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162. Sending materials containing false information through the mails can lead to a conviction of:Criminal Law and Business 5-39

a. embezzlement

b. money laundering

c. false representation

d. insider trading

e. none of the other choices are correct

ANSWER: e (page 131)

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163. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the

income, besides tax problems, there may be a crime of:

a. embezzlement

b. insider trading

c. fraud

d. money laundering

e. none of the other choices

ANSWER: d (page 131)

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164. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the

income by creating a fictional paper trail, besides tax problems, there may be a crime of:

a. embezzlement

b. insider trading

c. insurance fraud

d. economic espionage

e. none of the other choices

ANSWER: e (page 131)

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165. Money laundering is:

a. hiding the truth about the origins of money

b. embezzlement

c. hiding the truth about the amount of taxes paid

d. hiding money in offshore tax havens

e. none of the other choices are correct

ANSWER: a (page 131)

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166. The Racketeer Influenced and Corrupt Organizations (RICO) Act provides:

a. an extra weapon against organized crime

b. an ineffective weapon against organized crime

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c. an extra weapon against embezzlement

d. an extra weapon against environment violations

e. none of the other choices are correct

ANSWER: a (page 132)

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167. A law that was originally intended as a weapon against organized crime, but has come to

have broader application, including in civil claims for a wide range of activities is:

a. Laundering of monetary Instruments Act

b. Financial Abuse Act

c. Racketeer Influenced and Corrupt Organizations Act

d. Federal Bribery and Corruption Act

e. none of the above choices

ANSWER: c (page 132)

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168. Racketeering includes:

a. bribery

b. extortion

c. mail fraud

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 132)

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169. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents

related to tax lien purchases, the Supreme Court held that:

a. the plaintiffs could state a claim as victims of the fraud and sue under RICO

b. the plaintiffs could not state a claim as victims of the fraud and sue under RICO

c. RICO did not apply to the case

d. RICO is unconstitutional

e. none of the other choices are correct

ANSWER: a (page 133)

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170. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents

related to tax lien purchases, the Supreme Court held that:

a. RICO’s text provides no basis for imposing a first-party reliance requirement

b. RICO’s text provides a basis for imposing a first-party reliance requirement

c. RICO is unconstitutional

d. RICO does not apply under these circumstancesCriminal Law and Business 5-41

e. none of the other choices are correct

ANSWER: a (page 133)

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171. Securities fraud includes:

a. market rigging

b. theft of accounts from clients of securities firms

c. violations of securities laws

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 134)

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172. Failing to file tax returns, failing to report all income and overstating expenses are examples

of:

a. tax evasion

b. embezzlement

c. telephone fraud

d. money laundering

e. wire fraud

ANSWER: a (page 134)

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173. Which of the following can be an example of tax evasion:

a. failing to file tax returns

b. failing to report all income

c. overstating expenses

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 134)

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174. Fraud committed by electronic means may fall under:

a. internet fraud

b. wire fraud

c. telephone fraud

d. telemarketing fraud

e. any of the other choices

ANSWER: e (page 135)

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175. Anti-money laundering goals include which of the following:

a. identifying the beneficial owner of all assets

b. tracing the transmission of assets

c. reporting suspicious transactions

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 137)

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176. Identifying the beneficial owner of all assets, tracing the transmission of assets and reporting

suspicious transactions are all goals of:

a. anti-embezzlement measures

b. anti-fraud measures

c. anti-money laundering measures

d. anti-theft measures

e. anti-wire fraud measures

ANSWER: c (page 137)

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177. The beneficial owner of an asset is:

a. the person who makes money from the asset

b. the person listed on the legal paperwork as the owner

c. the person who buys the asset

d. the person who sells the asset

e. the person who enjoys the benefits of ownership

ANSWER: e (page 137)

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178. France’s assessment of criminal liability for corporations differs from the U.S.’s assessment

in that:

a. the requirement that individuals play a key function within a corporation’s decision-

making structure before liability attaches significantly restricts corporate criminal liability

b. the requirement that individuals play a key function within a corporation’s decision-

making structure before liability attaches significantly increases corporate criminal

liability

c. the requirement that individuals play a key function within a corporation’s decision-

making structure before liability means that there is no corporate criminal liability

d. it has no requirement that individuals play a key function within a corporation’s decision-

making structure before liability attaches

e. none of the other choices are correctCriminal Law and Business 5-43

ANSWER: a (page 138)

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179. Which of the following is listed as suspicious activity by the Internal Revenue Service:

a. the customer pays cash for products/services using bills having an unusual or chemical-

like odor

b. a 16-year-old brings bags of cash to a money transmitter to make a transfer from New

York City to Miami

c. a customer conducting an $11,000 cash transaction attempts to bribe a Money Services

Business employee not to file a Currency Transaction Report

d. all of the other specific choices are correct

e. none of the other specific choices are correct

ANSWER: d (page 139)

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180. Failing to file a suspicious activity report:

a. can lead to both civil and criminal penalties

b. can only lead to civil penalties

c. can only lead to criminal penalties

d. cannot lead to more than one penalty, regardless of the number of violations

e. none of the other choices are correct

ANSWER: a (page 139)

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181. Which of the following is not a Justice Department factor for an effective corporate

compliance program that can help a company reduce legal problems and punishment when

violations occur:

a. when offenses occur, steps taken to respond and to prevent further offenses

b. effective communication of standards and procedures to all employees

c. consistent communication with Justice about program achievements

d. high-level persons in the organization have responsibility to oversee compliance

e. all of the other choices are part of an effective program

ANSWER: c (page 140)

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182. Which of the following is not a Justice Department factor for an effective corporate

compliance program that can help a company reduce legal problems and punishment when

violations occur:

a. when offenses occur, steps taken to respond and to prevent further offenses

b. effective communication of standards and procedures to all employees

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c. consistent enforcement of standards within the organization

d. high-level persons in the organization have responsibility to oversee compliance

e. all of the other choices are part of an effective program

ANSWER: e (page 140)

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183. The Sentencing Guidelines were created to:

a. make sentencing consistent across the country

b. prevent favoritism to state residents in cases with out-of-state residents

c. make sentencing consistent within each state, but not across the whole country

d. prevent bias against foreign companies

e. none of the other choices are correct

ANSWER: a (page 140)

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184. The use of whistleblower “hotlines” that allow employees to report possible legal problems

with a company anonymously:

a. violate Fourth Amendment search and seizure rules

b. are used in the U.S.

c. are used in France and other European countries, which is where the practice began

d. are used in both the U.S. and European countries such as France

e. none of the other choices

ANSWER: b (page 140)

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185. The use of whistleblower “hotlines” that allow employees to report possible legal problems

with a company anonymously:

a. violate Fourth Amendment search and seizure rules

b. violate the U.N. rules on human rights

c. are widely used in France and other European countries, which is where the practice began

d. are widely used in both the U.S. and European countries such as France

e. none of the other choices

ANSWER: e (page 140)

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186. The Supreme Court has held that the Sentencing Guidelines:

a. are unconstitutional

b. are advisory

c. must be followed closely in criminal cases

d. must be followed closely in cases of crimes by corporations

e. none of the other choicesCriminal Law and Business 5-45

ANSWER: b (page 140)

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187. In U.S. v. Young, where Young appealed a long prison sentence he was given for running an

investment scam, the appeals court held that the sentence should not be altered because:

a. the defendants knew that the consequences of their fraud extended well beyond their own

banks and investors

b. the defendants could not have known that the consequences of their fraud extended well

beyond their own banks and investors

c. the Sentencing Guidelines are constitutional

d. the Sentencing Guidelines are backed by the executive branch

e. none of the other choices are correct

ANSWER: a (page 141)

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188. In U.S. v. Young, where Young appealed a long prison sentence he was given for running an

investment scam, the appeals court held that the sentence should not be altered because:

a. Congress fixed the sentence and courts may not deviate from it

b. the defendants could not have known that the consequences of their fraud extended well

beyond their own banks and investors

c. the Sentencing Guidelines are constitutional

d. the Sentencing Guidelines are backed by the executive branch

e. none of the other choices are correct

ANSWER: e (page 141)

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189. In U.S. v. Young, where Young appealed a long prison sentence he was given for running an

investment scam, the appeals court held:

a. his sentenced was to be reduced because of “extensive cooperation” with authorities

investigating the matter

b. that because the Sentencing Guidelines were unconstitutional, he should be resentenced

c. that because no personal injury was inflicted on any person, the sentence should be

reduced

d. the sentence as justified given the nature of the fraud

e. none of the other choices

ANSWER: d (page 141)

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190. In U.S. v. Young, where Young appealed a long prison sentence he was given for running an

investment scam, the appeals court held:

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a. his sentenced was to be reduced because of “extensive cooperation” with authorities

investigating the matter

b. that because the Sentencing Guidelines were unconstitutional, he should be resentenced

c. that because no personal injury was inflicted on any person, the sentence should be

reduced

d. the sentence should be increased to a higher level than originally imposed because the

losses involved exceeded $100 million

e. none of the other choices

ANSWER: e (page 141)

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TRUE – FALSE QUESTIONS

1. T F A crime is an act that “violates human rights.”

ANSWER: F (page 118)

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2. T F A crime may be a positive act that violates the penal law of a government.

ANSWER: T (page 118)

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3. T F A crime is an offense against the state.

ANSWER: T (page 118)

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4. T F The punishments for crimes are determined at the discretion of a court at trial.

ANSWER: F (page 118)

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5. T F The punishments for crimes are determined by legislatures.

ANSWER: T (page 118)

National: AACSB Analytic; AICPA BB-Legal6. T F Criminal Law and Business 5-47

Serious violations of common-law rights can result in private prosecution of criminal

acts.

ANSWER: F (page 118)

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7. T F Criminal penalties are imposed for Class A offenses of civil laws.

ANSWER: F (page 118)

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8. T F Each state has a criminal code and the federal government also has a criminal code.

ANSWER: T (page 118)

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9. T F All crimes are felonies.

ANSWER: F (page 118)

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10.T F Misdemeanors are not considered to be crimes.

ANSWER: F (page 118)

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11.T F Legally, a misdemeanor is a crime.

ANSWER: T (page 118)

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12.T F Felonies are serious crimes generally punishable by more than a year in prison.

ANSWER: T (page 118)

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13.T F Misdemeanors are less serious crimes generally punishable by less than a year in

prison.

ANSWER: T (page 118)

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14.T F When crimes are given class (Class A, Class B, etc,) or degree classifications, the

higher level classes (Class A) are subject to heavier penalties than lower level classes.

ANSWER: T (page 118)

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15.T F By definition, all crimes are against persons, not property.

ANSWER: F (page 118)

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16.T F Crimes against persons are more common than crimes against property.

ANSWER: F (page 119)

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17.T F It is believed that almost all crimes against persons are reported to the police.

ANSWER: F (page 119)

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18.T F Acts may be designed as crimes by either the federal or state governments.

ANSWER: T (page 119)

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19.T F State governments may designate crimes only after the federal government has given

permission to the states to make such laws.

ANSWER: F (page 119)

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20.T F What are called “victimless crimes” are actually not crimes at law.

ANSWER: F (page 119)

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21.T F To be a crime, there must be violence involved in the act, or the possibility of

violence.Criminal Law and Business 5-49

ANSWER: F (page 119)

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22.T F If a person is convicted of a crime, there must be some prison or jail time imposed.

ANSWER: F (page 119)

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23.T F Petty offenses are the same as misdemeanors in some jurisdictions.

ANSWER: T (page 119)

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24.T F Local governments may impose penalties for violations of local ordinances.

ANSWER: T (page 119)

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25.T F Violations of local ordinances may not result in jail time, only the possibility of a

fine.

ANSWER: F (page 119)

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26.T F Government agencies in charge of enforcing criminal statutes decide what the

penalties will be for violations.

ANSWER: F (page 119)

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27.T F Legislatures decide the range of punishments that may be imposed for crimes.

ANSWER: T (page 119)

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28.T F The enforcement of criminal statutes is completely removed from politics.

ANSWER: F (page 120)

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29.T F All reported possible criminal acts are investigated and, if credible evidence exists,

must be prosecuted.

ANSWER: F (page 120)

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30.T F Law enforcement agencies may not investigate or prosecute suspected crimes due to

lack of resources.

ANSWER: T (page 120)

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31.T F To be convicted of a crime, it must be shown that the accused in fact committed the

illegal act.

ANSWER: T (page 120)

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32.T F To be convicted of a crime, it must be shown that there was a necessary intent or state

of mind to commit the act.

ANSWER: T (page 120)

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33.T F The term actus reus means a wrongful deed or guilty act.

ANSWER: T (page 120)

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34.T F The term actus reus means criminal intent or wrongful purpose.

ANSWER: F (page 120)

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35.T F The term mens rea means criminal intent or wrongful purpose in the criminal act.

ANSWER: T (page 120)

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36.T F The term mens rea means “the defendant is guilty.”

ANSWER: F (page 120)Criminal Law and Business 5-51

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37.T F Criminal acts may be based on negligence.

ANSWER: T (page 120)

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38.T F Criminal negligence is carelessness amounting to a disregard of the rights and safety

of others.

ANSWER: T (page 120)

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39.T F Criminal negligence is not a basis for prosecution for crimes; there must be intent, not

negligence, in the commission of a crime.

ANSWER: F (page 120)

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40.T F If you accidentally drive the wrong way on a highway and kill someone in an

accident, since it was an accident, there can be no criminal prosecution.

ANSWER: F (page 120)

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41.T F Most crimes must be prosecuted by the state within a certain time period or the right

of the state to prosecute for the crime has tolled.

ANSWER: T (page 120)

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42.T F Most crimes are subject to a statute of limitations that tells how long the government

has to prosecute for a crime or that ability expires.

ANSWER: T (page 120)

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43.T F The statute of limitations for crimes means there is a limit to the length of prison

sentences that accompanies various criminal statutes.

ANSWER: F (page 120)

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44.T F When a person is arrested for suspicion of a crime, they are to be read their Miranda

rights.

ANSWER: T (page 121)

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45.T F The Miranda rights include being told that a person being accused of a crime has the

right to be represented by counsel.

ANSWER: T (page 121)

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46.T F The Miranda rights include being told that a person accused of a crime has the right to

not say anything.

ANSWER: T (page 121)

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47.T F If a person is accused of a crime, things they tell the arresting officers may be used as

evidence against the accused

ANSWER: T (page 121)

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48.T F When a person accused of a crime is read their Miranda rights that includes the fact

that there is a right to be released after posting bail.

ANSWER: F (page 121)

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49.T F A corporation cannot be charged with a crime since it is not a person.

ANSWER: F (page 121)

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50.T F In Commonwealth v. Angelo Todeaca Corp. the Massachusetts high court held that a

corporation cannot be charged with a crime, only a civil offense.

ANSWER: F (page 121)Criminal Law and Business 5-53

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51.T F In Commonwealth v. Angelo Todeaca Corp. the Massachusetts high court held that a

corporation can be convicted of a crime.

ANSWER: T (page 121)

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52.T F Intoxication and insanity are possible defenses to criminal charges

ANSWER: T (page 122)

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53.T F Intoxication, when proven, is usually a successful defense to a criminal charge.

ANSWER: F (page 122)

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54.T F It is estimated that the insanity defense in criminal cases works in about 100,000

criminal charges per year.

ANSWER: F (page 122)

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55.T F Self-defense can be used as a legal excuse in a criminal case for why harm was

inflicted on another person

ANSWER: T (page 122)

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56.T F The standards for gathering evidence are the same in criminal cases and civil cases.

ANSWER: F (page 123)

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57.T F Evidence that is gathered improperly may be used at trial, but the judge and jury must

be informed of the problems in obtaining the evidence.

ANSWER: F (page 123)

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58.T F The exclusionary rule applies to evidence that is improperly gathered.

ANSWER: T (page 123)

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59.T F Police may never search a person or enter property without a warrant.

ANSWER: F (page 107)

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60.T F Warrants are issued by district attorneys after they review the reasons provided by the

policy why a warrant is needed.

ANSWER: F (page 123)

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61.T F Warrants are issued by a judge or magistrate upon showing of probable cause by the

law enforcement authorities.

ANSWER: T (page 123)

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62.T F Warrants are needed to search for evidence, not to arrest suspects.

ANSWER: F (page 123)

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63.T F In U.S. v. Young, where government agents took x-rays of packages shipped by

Young via Federal Express, but no warrant had been issued, the appeals court held

that the evidence gathered from the x-rays could not be used in court.

ANSWER: F (page 123)

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64.T F In U.S. v. Young, where government agents took x-rays of packages shipped by

Young via Federal Express, but no warrant had been issued, the appeals court held

that the evidence gathered from the x-rays could be used in court.

ANSWER: T (page 123)

National: AACSB Analytic; AICPA BB-Legal65.T F Criminal Law and Business 5-55

In U.S. v. Young, where government agents took x-rays of packages shipped by

Young via Federal Express, but no warrant had been issued, the appeals court held

that Young had no expectation of privacy for the packages.

ANSWER: T (page 123)

National: AACSB Analytic; AICPA BB-Legal

66.T F In U.S. v. Young, where government agents took x-rays of packages shipped by

Young via Federal Express, but no warrant had been issued, the appeals court held

that since it was illegal to ship money, it was ok to take x-rays.

ANSWER: F (page 123)

National: AACSB Analytic; AICPA BB-Legal

67.T F If evidence of a possible crime is presented to a prosecuting attorney, they must bring

criminal proceedings against the accused.

ANSWER: F (page 124)

National: AACSB Analytic; AICPA BB-Legal

68.T F For a person to be charged with a crime, there must be an indictment by a grand jury.

ANSWER: F (page 124)

National: AACSB Analytic; AICPA BB-Legal

69.T F Prosecuting attorneys only review evidence presented to them by the police or other

authorities; they do not do their own investigations.

ANSWER: F (page 124)

National: AACSB Analytic; AICPA BB-Legal

70.T F When a prosecutor requests an indictment from a grand jury, one is usually issued.

ANSWER: T (page 124)

National: AACSB Analytic; AICPA BB-Legal

71.T F If a person is arrested on suspicion of a crime, they are immediately taken to the

grand jury for consideration for an indictment.

ANSWER: F (page 124)

National: AACSB Analytic; AICPA BB-Legal

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as

permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.5-56 Test Bank

72.T F When a person is arrested and accused of a crime, an appearance will be made before

a judge that is called an arraignment.

ANSWER: T (page 124)

National: AACSB Analytic; Communication; AICPA BB-Legal

73.T F At an arraignment, a suspect may be asked to enter a plea.

ANSWER: T (page 124)

National: AACSB Analytic; Communication; AICPA BB-Legal

74.T F A suspect may enter pleas of guilty or not guilty only.

ANSWER: F (page 124)

National: AACSB Analytic; AICPA BB-Legal

75.T F Nolo contendere means there is no longer a cause for the authorities to consider

further charges against a suspect in a criminal matter.

ANSWER: F (page 124)

National: AACSB Analytic; Communication; AICPA BB-Legal

76.T F A party accused of a crime may plead no contest or nolo contendere.

ANSWER: T (page 124)

National: AACSB Analytic; Communication; AICPA BB-Legal

77.T F In most criminal cases, the person is not held in jail after the arraignment but before

trial.

ANSWER: T (page 125)

National: AACSB Analytic; AICPA BB-Legal

78.T F When a suspect is brought before a judge for an initial appearance, the judge may

order the suspect released.

ANSWER: T (page 125)

National: AACSB Analytic; AICPA BB-Legal

79.T F In felony cases, it is not uncommon for the charges to be settled with a plea bargain

rather than go to trial.Criminal Law and Business 5-57

ANSWER: T (page 125)

National: AACSB Analytic; AICPA BB-Legal

80.T F If an employee steals money from an employer and has theft charges brought by the

state, the employer must pay for the cost of prosecution.

ANSWER: F (page 125)

National: AACSB Analytic; AICPA BB-Legal

81.T F A large percentage of criminal cases are settled by plea bargains.

ANSWER: T (page 125)

National: AACSB Analytic; AICPA BB-Legal

82.T F At a criminal trial, the standard for guilt is “beyond a reasonable doubt.”

ANSWER: T (page 125)

National: AACSB Analytic; Communication; AICPA BB-Legal

83.T F At a criminal trial, the standard for guilt is “all probable cause.”

ANSWER: F (page 126)

National: AACSB Analytic; AICPA BB-Legal

84.T F If a jury finds a defendant not guilty of criminal charges in a state court, the same

charges may be retried in a federal court.

ANSWER: F (page 126)

National: AACSB Analytic; AICPA BB-Legal

85.T F White collar crime means a crime committed against a business.

ANSWER: F (page 127)

National: AACSB Analytic; AICPA BB-Legal

86.T F White collar crimes refer to crimes so designated by Congress in a particular portion

of the federal criminal code.

ANSWER: F (page 127)

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National: AACSB Analytic; AICPA BB-Legal

87.T F Only individuals, not corporations, can be charged with white collar criminal

offenses.

ANSWER: F (page 127)

National: AACSB Analytic; AICPA BB-Legal

88.T F White collar crime cases may occur under federal law or under state law.

ANSWER: T (page 127)

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89.T F Defendants may be sentenced to prison for violating the antitrust laws.

ANSWER: T (page 127)

National: AACSB Analytic; AICPA BB-Legal

90.T F Falsifying information about a bankruptcy can result in criminal prosecution.

ANSWER: T (page 128)

National: AACSB Analytic; AICPA BB-Legal

91.T F The offer of money or the taking of money, or other things of value, to influence

official actions is called bribery.

ANSWER: T (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal

92.T F Bribery charges only apply to the person who makes a bribe, not the person who

accepts a bribe.

ANSWER: F (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal

93.T F Copying designed clothing and selling them as the real thing can result in criminal

counterfeiting charges.

ANSWER: T (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal94.T F Criminal Law and Business 5-59

The theft or misappropriation of valuable business information, such as a trade secret,

is the crime of counterfeiting.

ANSWER: F (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal

95.T F The unauthorized use of a credit card can result in criminal charges.

ANSWER: T (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal

96.T F The unauthorized use of a credit card over the internet can result in criminal charges

for internet fraud.

ANSWER: T (page 128)

National: AACSB Analytic; Communication; AICPA BB-Legal

97.T F The sabotage of computers can result in criminal charges.

ANSWER: T (page 125)

National: AACSB Analytic; AICPA BB-Legal

98.T F The theft or misappropriation of valuable business information, such as a trade secret,

is the crime of economic espionage.

ANSWER: T (page 129)

National: AACSB Analytic; Communication; AICPA BB-Legal

99.T F When a person in a position of trust steals money it is the crime of embezzlement.

ANSWER: T (page 129)

National: AACSB Analytic; Communication; AICPA BB-Legal

100. T F When a person in a position of trust steals money it is the crime of bribery.

ANSWER: F (page 1291)

National: AACSB Analytic; Communication; AICPA BB-Legal

101. T F Violations of environmental laws are civil violations; there are no criminal penalties

that can result in prison time.

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.5-60 Test Bank

ANSWER: F (page 129)

National: AACSB Analytic; AICPA BB-Legal

102. T F Financial fraud is a civil, not criminal, matter.

ANSWER: F (page 130)

National: AACSB Analytic; AICPA BB-Legal

103. T F Criminal fraud can occur in private institutions and against the government.

ANSWER: T (page 130)

National: AACSB Analytic; AICPA BB-Legal

104. T F The purchase or sale of securities based on information one has a fiduciary duty not

to use is the crime of money laundering.

ANSWER: F (page 130)

National: AACSB Analytic; AICPA BB-Legal

105. T F The purchase or sale of securities based on information one has a fiduciary duty not

to use can be the crime of insider trading.

ANSWER: T (page 130)

National: AACSB Analytic; Communication; AICPA BB-Legal

106. T F Mail fraud is usually the theft of postal services.

ANSWER: F (page 131)

National: AACSB Analytic; Communication; AICPA BB-Legal

107. T F The crime of mail fraud is common since materials related to a fraud that are sent

through the mails can fall under the law.

ANSWER: T (page 131)

National: AACSB Analytic; Communication; AICPA BB-Legal

108. T F An American citizen working for an American company in another country who is

accused of a crime will be tried under American law.

ANSWER: F (page 132)

National: AACSB Analytic; AICPA BB-LegalCriminal Law and Business 5-61

109. T F Foreigners working in other countries are subject to prosecution under the laws of

those countries, not under the terms of the law of their home countries..

ANSWER: T (page 132)

National: AACSB Analytic; AICPA BB-Legal

110. T F Hiding the truth about the origins of income can be the crime of money laundering.

ANSWER: T (page 131)

National: AACSB Analytic; Communication; AICPA BB-Legal

111. T F Prosecution for the crime of money laundering is uncommon.

ANSWER: F (page 131)

National: AACSB Analytic; AICPA BB-Legal

112. T F If one earns income illegally, such as by selling drugs, one must report the income,

not hide it.

ANSWER: T (page 131)

National: AACSB Analytic; AICPA BB-Legal

113. T F The RICO statute is used almost exclusively against organized crime.

ANSWER: F (page 132)

National: AACSB Analytic; AICPA BB-Legal

114. T F The application of RICO is to crimes of violence that accompany attempts to get large

sums of money.

ANSWER: F (page 132)

National: AACSB Analytic; AICPA BB-Legal

115. T F RICO can be used for criminal and civil prosecutions.

ANSWER: T (page 133)

National: AACSB Analytic; Communication; AICPA BB-Legal

116. T F In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was a

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right of action by a private party under RICO to sue another party for treble damages

for business losses suffered by improper means.

ANSWER: T (page 134)

National: AACSB Analytic; AICPA BB-Legal

117. T F In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was no

cause of action by a private company involved in bidding in a government auction.

Only the government that suffered a loss has a cause of action under RICO.

ANSWER: F (page 134)

National: AACSB Analytic; AICPA BB-Legal

118. T F Willful evasion of tax obligations can be a felony.

ANSWER: T (page 135)

National: AACSB Analytic; AICPA BB-Legal

119. T F Criminal prosecution for tax evasion is rare in practice.

ANSWER: F (page 135)

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120. T F Fraud committed on the telephone and Internet can both be subject to criminal

prosecution.

ANSWER: T (page 136)

National: AACSB Analytic; AICPA BB-Legal

121. T F Many criminal prosecutions are based on the use of electronic communications as a

part of the crime, not for the actual physical crime itself.

ANSWER: T (page 136)

National: AACSB Analytic; AICPA BB-Legal

122. T F White collar crime in other developed nations does not appear to draw as much

attention as it does in the U.S.

ANSWER: T (page 136)

National: AACSB Analytic; AICPA BB-Legal

123. T F Anti-Money Laundering steps must be taken by legitimate businesses.Criminal Law and Business 5-63

ANSWER: T (page 137)

National: AACSB Analytic; AICPA BB-Legal

124. T F If a business receives money that it believes to be “suspicious” it must report the

transaction to the relevant government authority.

ANSWER: T (page 137)

National: AACSB Analytic; AICPA BB-Legal

125. T F To combat money laundering there are compliance programs called Know Your

Customer or Customer Due Diligence.

ANSWER: T (page 138)

National: AACSB Analytic; AICPA BB-Legal

126. T F To combat money laundering the Treasury Department has a widely-used program

called “Track the Cash” that all financial institutions must follow.

ANSWER: F (page 138)

National: AACSB Analytic; AICPA BB-Legal

127. T F Banks must report to the government all trans transactions by their customers that are

for more than $10,000.

ANSWER: T (page 139)

National: AACSB Analytic; AICPA BB-Legal

128. T F Banks must report to the government all trans transactions by their customers that are

for more than $3,000.

ANSWER: F (page 139)

National: AACSB Analytic; AICPA BB-Legal

129. T F Criminal liability for corporate acts is more common in France than in the U.S.

ANSWER: F (page 138)

National: AACSB Analytic; AICPA BB-Legal

130. T F The Sentencing Guidelines for criminal convictions must be applied without

variation.

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ANSWER: F (page 140)

National: AACSB Analytic; AICPA BB-Legal

131. T F Companies that have compliance programs can receive lower punishments for

criminal violations than those that do not, for the same action.

ANSWER: T (page 140)

National: AACSB Analytic; AICPA BB-Legal

132. T F In a corporate compliance program, the Justice Department expects to see high-level

persons in the company with responsibility to oversee the program.

ANSWER: T (page 140)

National: AACSB Analytic; Communication; AICPA BB-Legal

133. T F In a corporate compliance program, the Justice Department expects to see effective

communications about the program throughout the company.

ANSWER: T (page 140)

National: AACSB Analytic; Communication; AICPA BB-Legal

134. T F In a corporate compliance program, the Justice Department expects to receive

frequent reports from the company that discuss successes and failures in

implementing the program.

ANSWER: F (page 140)

National: AACSB Analytic; AICPA BB-Legal

135. T F The Supreme Court has held the Sentencing Guidelines to be purely advisory; courts

may impose any sentence “reasonable.”

ANSWER: F (page 140)

National: AACSB Analytic; AICPA BB-Legal

136. T F Congress adopted the Sentencing Guidelines because it believed some judges were

being too harsh in the penalties imposed in many cases,

ANSWER: F (page 140)

National: AACSB Analytic; AICPA BB-Legal137. T F Criminal Law and Business 5-65

While the Sentencing Guidelines are advisory, they tend to restrict the range of

sentences judges impose in criminal convictions.

ANSWER: T (page 140)

National: AACSB Analytic; AICPA BB-Legal

138. T F In U.S. v. Young, where Young was convicted of a financial scam, and cooperated

with authorities in the investigation, the appeals court held that a long prison sentence

was still justified.

ANSWER: T (page 141)

National: AACSB Analytic; AICPA BB-Legal

139. T F In U.S. v. Young, where Young was convicted of a financial scam, and cooperated

with authorities in the investigation, the appeals court held that a long prison sentence

would be overturned due to the cooperation, which would result in probation, not

imprisonment.

ANSWER: F (page 141)

National: AACSB Analytic; AICPA BB-Legal

140. T F In U.S. v. Young, where Young was convicted of a financial scam, but still received a

long prison sentence, the appeals court held the Sentencing Guidelines to be

unconstitutional.

ANSWER: F (page 141)

National: AACSB Analytic; AICPA BB-Legal

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as

permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.