Chapter 7: Criminal Law and Cyber Crime - CMS Login

Chapter 7: Criminal Law
and Cyber Crime

Copyright © 2009 South-Western Legal Studies in Business,
aCoppayrrtigohft S©o2u0t0h9-WSoeusthte-WrneCsteernngLaeggealLSetuadrineisngin. Business,

a part of South-Western Cengage Learning.

1: Civil Law and Criminal Law

Major differences:

Civil (Tort) Criminal

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2: Classification of Crimes

• An act can have both civil and criminal
consequences. (O.J. Simpson trials)

Felonies Misdemeanors

Serious crimes, Non-serious (petty)

punishable by Death or crimes punishable by

prison for more than jail for less than one(1)

one (1) year. year and/or by fines.

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a part of South-Western Cengage Learning.

3: Criminal Liability

To be convicted of a crime, a person
must:

– ____________________(actus reus).
– Have the ___________ (mens rea) during

________of the ____________.

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Corporate Criminal Liability

• A corporation is creature of state statute.
• A corporate entity may be convicted of a

crime.
• Punishment would be fines and/or denial of

certain legal privileges.

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Liability of the Corporate Entity

• Corporations may be convicted of criminal
activity if:

– Crime is within agent/employee’s scope of
employment;

– Corporation fails to perform a legally required
duty; or

– Crime authorized or requested by corporate
principal/officer.

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Liability of Corporate 8
Officers and Directors

• Corporate officers and directors
are personally liable for crimes
they commit.

• Also, they may be criminally
liable for acts of their under the
“Responsible Corporate
Officer” doctrine. United
States v. Park (1975).

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4: Types of Crimes 9

• Violent Crime.

–.

• Property Crime.

–.

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White-Collar Crime

Crimes occurring in the business context using non-
violent means to obtain personal or business
advantage.

– Embezzlement. Case 7.1 George v. Commonwealth of
Virginia (2008).

– Mail or Wire Fraud (federal). Case 7.2 United States v.
Lyons (2007).

– Bribery.
– Bankruptcy Fraud (federal).
– Insider Trading (federal).
– Theft of Trade Secrets (Economic Espionage Act- federal).

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a part of South-Western Cengage Learning.

Organized Crime

Operates illegitimately by providing
illegal goods and services:

– Money Laundering.
– RICO (criminal and civil liability).

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5: Defenses to Criminal Liability

• Infancy (juvenile).
• Involuntary Intoxication: is a defense if person was

incapable of understanding act.
• Insanity: defendant lacked substantial capacity to

appreciate the wrongfulness of act or to conform
act to law.
• Mistake.
• Duress.
• Consent.

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Defenses

• Justifiable Use of Force: use deadly force if
reasonable belief of immanent death or
serious injury; cannot use deadly force to
protect property alone.

• Necessity: criminal act necessary to prevent
greater harm.

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Defenses

• Entrapment: prevents government from
encouraging crimes. Key issue: was the
defendant pre-disposed to commit the act?

• Statute of Limitations.
• Immunity.

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6: Criminal Procedures

Copyright © 2009 South-Western Legal Studies in Business, • U.S. Constitution provides
a part of South-Western Cengage Learning. specific safeguards for those
accused of crimes at federal
and state level.

• Criminal procedures are
designed to protect against
the arbitrary use of power by
the government.

15

Fourth Amendment 16

• The Fourth Amendment
protects against unreasonable
search and seizures.

• No warrant for search or arrest
can issue without probable
cause.

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a part of South-Western Cengage Learning.

Exclusionary Rule

• Evidence obtained in violation of Constitutional
amendments is excluded from trial.

• Deter police from warrantless searches,
seizures and misconduct.

• “Inevitability” and “good faith” are exceptions
to the rule.

• Case 7.3 Fellers v. United States (2004).

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The “Miranda” Rule

• Case 7.4 Miranda v. Arizona (1966) required
police to inform suspects of their
constitutional rights.

• The Supreme Court upheld Miranda in
Dickerson v. U.S. (2000).

• Exceptions to Miranda:

– ‘Public Safety’.
– Police are not required to ‘decipher’ suspects

intentions.

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Criminal Arrest
Process
(Requires Probable Cause)

Initial Appearance

(Before Judge)

Preliminary Hearing

(Determines Probable Cause)

Grand Jury D.A's Office

Arraignment

Plea Bargain Trial

Change of Plea to Guilty Prosecutor must prove
guilt beyond reasonable doubt

Sentencing

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a part of South-Western Cengage Learning.