© 2008 West Legal Studies in Business A Division of Thomson Learning 1 BUSINESS LAW TODAY Essentials 8 th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A. Jentz - University of Texas at Austin, Emeritus Chapter 6 Criminal Law and Cyber Crimes

© 2008 West Legal Studies in Business A Division of Thomson Learning 2 Learning Objectives  What two elements must exist before a person can be convicted of a crime? Can a corporation commit crimes?  What are five broad categories of crimes? What is white collar crime?  What defenses might be raised by criminal defendants to avoid liability for criminal acts?  What constitutional safeguards exist to protect persons accused of a crime? What are the major procedural steps in the criminal process?  What is cyber crime? What laws apply to crimes committed in cyberspace?

© 2008 West Legal Studies in Business A Division of Thomson Learning 3 Civil Law vs. Criminal Law

© 2008 West Legal Studies in Business A Division of Thomson Learning 4 Civil and Criminal Liability

© 2008 West Legal Studies in Business A Division of Thomson Learning 5 Criminal Liability  A person’s wrongful act may hold him liable (or guilty) in civil actions (tort) and criminal actions.  State must show beyond a reasonable doubt that the Defendant: Performed an illegal act (actus reus) AND While performing the act, had the required intent or specific state of mind (mens rea).  Without the required intent there can be no conviction.

© 2008 West Legal Studies in Business A Division of Thomson Learning 6 Corporate Criminal Liability  Liability of the Corporate Entity. Crimes must occur within scope of employment. Corporations can be held criminally liable when they FAIL to fulfill certain statutory duties.  Corporate officers and directors can be criminally liable under the “Responsible Officer” doctrine.

© 2008 West Legal Studies in Business A Division of Thomson Learning 7 Types of Crimes  Violent Crimes. Crimes against persons (murder, rape). Robbery is a violent crime.  Property Crimes - Most common, involves money or property: Burglary. Larceny. Obtaining Goods by False Pretenses. Receiving Stolen Goods. Arson. Forgery.

© 2008 West Legal Studies in Business A Division of Thomson Learning 8 Types of Crimes  Public Order Crimes.  White Collar Crimes: non-violent crimes involving a business transaction: Embezzlement. Mail and Wire Fraud. CASE 6.1 United States v. Lyons (2007). Bribery. Theft of Trade Secrets. Insider Trading.

© 2008 West Legal Studies in Business A Division of Thomson Learning 9 Types of Crimes  Organized Crime. Money laundering. Racketeer Influenced and Corrupt Organizations Act (RICO).

© 2008 West Legal Studies in Business A Division of Thomson Learning 10 Classification of Crimes  Felonies: serious crimes punishable by death or by imprisonment over one (1) year.  Misdemeanors: less serious crimes punishable by fine or by confinement up to one (1) year.

© 2008 West Legal Studies in Business A Division of Thomson Learning 11 Defenses to Criminal Liability Infancy (juvenile).Mistake. Intoxication: voluntary vs. involuntary. Consent. Insanity.Duress. Justifiable Use of Force. Entrapment. Immunity.Statute of Limitations.

© 2008 West Legal Studies in Business A Division of Thomson Learning 12 Fourth Amendment Protections  Search Warrants: Officer must have Probable Cause. Exceptions to Warrant.  Search and Seizure in Businesses. Warrant required in some cases. No warrant required for contaminated food or highly regulated liquor or gun businesses. CASE 6.2 United States v. Hartwell (2006).

© 2008 West Legal Studies in Business A Division of Thomson Learning 13 Fifth Amendment Protections  Due Process of Law. Opportunity to Object. Hearing before a neutral Magistrate.  Double Jeopardy. Person cannot be retried for the same offense in the same court. Civil action, however, is permitted.  Self-Incrimination. “Right to Remain Silent” or not testify against yourself

© 2008 West Legal Studies in Business A Division of Thomson Learning 14 Six and Eighth Amendments  Right to Speedy Trial.  Right to Jury Trial.  Right to Public Trial.  Right to Confront Witnesses.  Right to Counsel. CASE 6.3 Fellers v. United States (2004).  Prohibition on cruel and unusual punishment.

© 2008 West Legal Studies in Business A Division of Thomson Learning 15 Exclusionary Rule & Miranda  Exclusionary Rule. Evidence obtained in violation of constitutional procedures must be excluded. Evidence derived from illegal evidence is “fruit of the poisonous tree.” Deters police from misconduct.  Miranda Rule. Inform suspect of his rights. Exceptions: coercion, illegally obtained evidence.

© 2008 West Legal Studies in Business A Division of Thomson Learning 16 Criminal Process Arrest Initial Appear Booking Charges Filed Prelim Hearing Arraign- ment Plea Bargain Trial Guilty Plea

© 2008 West Legal Studies in Business A Division of Thomson Learning 17 Cyber Crime  Cyber crimes involve the use of computers in cyberspace to injure a person or property.  Most cyber crimes are based on existing common law crimes, with exceptions: Identity Theft. Cyber Stalking. Hacking. Cyber Terrorism.  Computer Fraud and Abuse Act helps prosecute computer crime.