PowerPoint Slides to Accompany
BUSINESS LAW
E-Commerce and Digital Law
International Law and Ethics
5th Edition
by Henry R. Cheeseman
Chapter 6
Business and Online
Crimes
Slides developed by
Les Wiletzky
Wiletzky and Associates, Puyallup, WA
Copyright © 2004 by Prentice-Hall. All rights reserved.
Crime
Any act done by an individual in violation
of those duties that he or she owes to
society and for the breach of which the
law provides that the wrongdoer shall
make amends to the public.
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6-2
Penal Codes and Regulatory Statutes
Statutes are the source of criminal law.
 State penal codes define in detail:

The activities considered to be crimes within
their jurisdiction; and
 The penalties that will be imposed for their
commission.

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6-3
Penal Codes and Regulatory Statutes
(continued)

A comprehensive federal criminal code
defines federal crimes.

State and federal regulatory statutes often
provide for criminal violations and penalties.
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6-4
Parties to a Criminal Action
In a criminal lawsuit, the government is the
plaintiff.
 The government is represented by a lawyer
called the prosecutor.
 The accused is the defendant.
 The accused is represented by a defense
attorney.

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6-5
Classification of Crimes
Felonies
Misdemeanors
Violations
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6-6
Felonies

Felonies are the most serious kinds of
crimes.

Felonies include crime that are mala in se –
inherently evil.

Most crimes against the person and some
business-related crimes are felonies.
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6-7
Misdemeanors
Misdemeanors are less serious than felonies.
 They are crimes mala prohibita – not
inherently evil but are prohibited by society.


Many crimes against property are
misdemeanors.
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Violations
Crimes that are neither a felony nor a
misdemeanor that are usually punishable by
a fine.
 For example:

Traffic violations
 Jaywalking

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6-9
Essential Elements of a Crime
Criminal Act
Criminal Intent
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6 - 10
Criminal Act
The defendant must have actually performed
the prohibited act.
 Actus reus (guilty act) – the actual
performance of the guilty act.
 Merely thinking about a crime is not a crime
because no action has been taken.

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6 - 11
Criminal Intent
Mens rea (evil intent) – the possession of the
requisite state of mind to commit a prohibited
act.
 Specific intent – the accused purposefully,
intentionally, or with knowledge commits a
prohibited act.
 General intent – a showing of recklessness

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6 - 12
Criminal Acts as the Basis for Tort Action
An injured party may bring a civil tort action
against a wrongdoer who has caused the
party injury during the commission of a
criminal act.
 Civil lawsuits are separate from the
government’s criminal action against the
wrongdoer.

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6 - 13
Civil and Criminal Law Compared
Issue
Civil Law
Criminal Law
Party who brings the action The plaintiff
The government
Trial by jury
Yes, except actions for
equity
Yes
Burden of proof
Preponderance of the
evidence
Beyond a reasonable doubt
Jury vote
Judgment for plaintiff
requires specific jury vote
Conviction requires
unanimous jury vote
Sanctions and penalties
Monetary damages and
equitable remedies
Imprisonment, fine, capital
punishment, probation
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6 - 14
Criminal Procedure
Pretrial Criminal
Procedure
The Criminal Trial
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6 - 15
Pretrial Criminal Procedure

Pretrial criminal procedure consists of
several distinct stages including:

Arrest

Indictment or Information

Arraignment

Plea Bargaining
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6 - 16
The Criminal Trial
All jurors must unanimously agree before the
accused is found guilty of the crime charged.
 If one juror has reasonable doubt about the
guilt of the accused, the accused is not guilty
of the crime charged.
 If all of the jurors agree that the accused did
not commit the crime, the accused is
innocent of the crime charged.

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6 - 17
The Criminal Trial (continued)
After trial, the following rules apply:
 If the defendant is found guilty, he or she
may appeal.

If the defendant is found innocent, the
government cannot appeal.
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6 - 18
The Criminal Trial (continued)

If the jury cannot come to a unanimous
decision about the defendant’s guilt, the jury
is considered a hung jury.

The government may choose to retry the
case before a new judge and jury.
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6 - 19
Crimes Affecting Business

Robbery

Arson

Burglary

Forgery

Larceny

Extortion

Theft

Credit card crimes

Receiving stolen
property

Bad checks
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6 - 20
White Collar Crimes
Embezzlement
Criminal Fraud
Bribery
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6 - 21
The Foreign Corrupt Practices Act
Makes it illegal for American companies, or
their officers, directors, agents, or
employees, to bribe a foreign official, a
foreign political party official, or a candidate
for foreign political office.
 Requires firms to keep accurate books and
records of all foreign transactions.

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6 - 22
Racketeer Influenced and Corrupt
Organizations Act (RICO)

Makes it a federal crime to acquire or
maintain an interest in, use income from, or
conduct or participate in the affairs of an
“enterprise” through a “pattern” of
“racketeering activity.”
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6 - 23
Inchoate Crimes

Inchoate crimes include incomplete crimes
and crimes committed by non-participants.
Criminal conspiracy
 Attempt to commit a crime
 Aiding and abetting the commission of a
crime

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6 - 24
Corporate Criminal Liability
Corporations may be held criminally liable for
actions of their officers, employees, or
agents.
 Corporate directors, officers, and employees
are personally liable for the crimes they
commit while acting on behalf of the
corporation.

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6 - 25
Constitutional Safeguards

Fourth Amendment Protection Against
Unreasonable Searches and Seizures

Fifth Amendment Privilege Against SelfIncrimination

Fifth Amendment Protection Against Double
Jeopardy
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6 - 26
Constitutional Safeguards (continued)

Sixth Amendment Right to a Public Jury Trial

Eighth Amendment Protection Against Cruel
and Unusual Punishment
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6 - 27
Fourth Amendment Protection Against
Unreasonable Searches and Seizures
The Fourth Amendment protects persons
and corporations from overzealous
investigative activities by the government.
 “Reasonable” search and seizure by the
government is lawful.
 Search warrants based on probable cause
are necessary in most cases.

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6 - 28
Fourth Amendment Protection Against
Unreasonable Searches and Seizures (continued)

Exclusionary Rule
A rule that says evidence obtained from an
unreasonable search and seizure can
generally be prohibited from introduction at a
trial or administrative proceeding against the
person searched.
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6 - 29
Fifth Amendment Privilege Against SelfIncrimination
The Fifth Amendment states that no person
shall be compelled in any criminal case to be
a witness against him- or herself.
 This protection applies in federal cases and
is extended to state and local criminal cases
through the Due Process Clause of the
Fourteenth Amendment.

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6 - 30
Fifth Amendment Privilege Against SelfIncrimination (continued)
Protection against self-incrimination applies
only to natural persons who are accused of
crimes.
 Corporations and partnerships (artificial
persons) cannot raise this protection.


Business records of corporations are not
generally protected from disclosure.
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6 - 31
Fifth Amendment Privilege Against SelfIncrimination (continued)

Attorney-Client Privilege
A rule that states a client can tell his or her
lawyer anything about the case without fear
that the attorney will be called as a witness
against the client.

There is no accountant-client privilege under
federal law.
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6 - 32
Fifth Amendment Protection Against Double
Jeopardy

The double jeopardy clause of the Fifth
Amendment protects persons from being
tried twice for the same crime.

If the same criminal act involves several
different crimes, the accused may be tried for
each of the crimes with no double jeopardy.
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6 - 33
Fifth Amendment Protection Against Double
Jeopardy (continued)

If the same act violates the laws of two or
more jurisdictions, each jurisdiction may try
the accused without violating the double
jeopardy clause.
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6 - 34
Sixth Amendment Right to a Public Trial

The Sixth Amendment guarantees certain
rights to criminal defendants. These rights
are:
1. To be tried by an impartial jury of the state or
district in which the accused crime was
committed.
2. To confront (cross-examine) the witnesses
against the accused.
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6 - 35
Sixth Amendment Right to a Public Trial
(continued)

Sixth Amendment rights (continued)
3. To have the assistance of a lawyer.
4. To have a speedy trial.
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6 - 36
Eighth Amendment Protection Against Cruel
and Unusual Punishment

Cruel and Unusual Punishment – a clause
of the Eighth Amendment that protects
criminal defendants from torture or other
abusive punishment.

This clause does not prohibit capital
punishment.
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6 - 37
Federal Antiterrorism Act of 2001

In response to the events of September 11,
2001, Congress enacted a new federal
Antiterrorism Act.

The act assists the government in detecting
and preventing terrorist activities and
investigating and prosecuting terrorists.
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6 - 38
Federal Antiterrorism Act of 2001
(continued)

The act contains the following main features:
Special Intelligence Court
 Nationwide Search Warrant
 Roving Wiretaps
 Sharing of Information
 Detention of Non-citizens
 Bioterrorism Provision
 Anti-Money Laundering Provisions

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