1. © 2007 by West Legal Studies in Business / A Division of Thomson Learning CHAPTER 6 Criminal Law and Cyber Crimes

2. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 2 Civil vs. Criminal Law Key differences: Civil (Tort)Criminal Preponderance Beyond Reasonable Doubt DamagesJail or Prison Private injury (parties hire their own attorneys) Public injury (Prosecutor represents society) Harm to a person or property Violation of statute

3. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 3 FeloniesMisdemeanors Serious crimes, punishable by Death or prison for more than one (1) year. Non-serious (petty) crimes punishable by jail for less than one(1) year and/or by fines. Classification of Crimes A criminal act can also have civil liability. (Remember the O.J. Simpson trials?)

4. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 4 Criminal Liability To be convicted of a crime, the 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.

5. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 5 Corporate Criminal Liability A corporation is a legal “person.” A corporation can be fined or denied legal privileges (license) for criminal activity. Responsible Corporate Officer: officers and directors can be criminally liable.

6. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 6 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. –Receiving Stolen Goods. –Arson. –Forgery.

7. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 7 Types of Crimes White Collar Crimes: non-violent crimes involving a business transaction. –Embezzlement. –Mail and Wire Fraud. –Bribery. –Theft of Trade Secrets. –Insider Trading. Organized Crime – RICO and Money Laundering.

8. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 8 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. Consent.

9. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 9 Defenses to Criminal Liability Duress. Justifiable Use of Force: use deadly force if reasonable belief of immanent death or serious injury; cannot use deadly force to protect property alone. Entrapment. Statute of Limitations. Immunity.

10. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 10 4 th Amendment Protection Fourth Amendment Protections. –Search Warrants and Probable Cause. –Officer must have “Probable Cause”: Trustworthy Evidence to Convince A Reasonable Person. –The warrant must be precise: no ‘general’ warrants (fishing expedition). –Exceptions to Warrant.

11. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 11 Search and Seizure in Businesses. –Generally, government cannot enter business without a warrant. –No warrant required for contaminated food or highly regulated liquor or gun businesses. –Case 6.1 United States v. Harwell (2006). 4 th Amendment

12. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 12 5 th Amendment Protection Fifth Amendment Protections. –Due Process of Law. Opportunity to Object with a hearing before a neutral Magistrate. –Double Jeopardy. Person cannot be retried for the same offense in the same court. A civil action, however, is permitted. –Self-Incrimination. “Right to Remain Silent” or not testify against yourself.

13. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 13 6 th and 8 th Amendments Sixth & Eight Amendment Protections. –Right to Speedy Trial. –Right to Jury Trial. –Right to Public Trial. –Right to Confront Witnesses. –Right to Counsel. Case 6.2 Fellers v. U.S. (2004). –Prohibition on Cruel and Unusual Punishment.

14. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 14 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.

15. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 15 Miranda Rule Miranda v Arizona (1966). –Inform suspect of his rights when he is arrested, including right to counsel and right to remain silent. Exceptions: –Public safety. –Unequivocal request for lawyer.

16. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by 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

17. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 17 Criminal Process Indictment or Information. –Indictment issued by a grand jury in secret, usually for very serious crimes. –Information is a criminal complaint issued by prosecutor’s office and served on accused.

18. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 18 Criminal Process Trial: unanimous verdict. –Case 6.3 United States v. Yates (2006). Sentencing Guidelines.

19. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 19 Cyber Crimes Cyber crimes involve the use of computers in cyberspace to injure a person or property. Cyber Theft: –Financial Crimes. –Identity Theft. Cyber Stalking.

20. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 20 Cyber Crimes Hacking. Cyber Terrorism. Prosecuting Cyber Crimes: –Location of the crime raises jurisdictional issues. –Identification of offenders is difficult.

21. THE LEGAL ENVIRONMENT TODAY Miller Cross 5 th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning 21 Cyber Crimes Prosecuting CyberCrimes: –Federal Statues: Computer Fraud and Abuse Act, Economic Espionage Act and RICO.