Business Law and the
Regulation of Business
Chapter 6: Criminal Law
By
Richard A. Mann
&
Barry S. Roberts

A. Nature of Crimes
B. White-Collar Crime
C. Crimes Against Business
D. Defenses to Crimes
E. Criminal Procedure

 Definition – any act or omission forbidden by public law.
 Essential Elements
– Actus Reus – wrongful or overt act.
– Mens Rea – criminal intent or mental fault.
 Classification
– Felony – a serious crime.
– Misdemeanor – a less serious crime.

Type
Subjective Fault
Objective Fault
Liability without
Fault
Fault Required Examples
Purposeful
Knowing
Reckless
Larceny
Embezzlement
Negligent
Careless
Careless Driving
Issuing bad check
(some states)
None
Sale of alcohol to minor
Sale of adulterated food

 Vicarious Liability – liability imposed for acts of employees if the employer directed, participated in, or approved of the acts.
 Liability of a Corporation – under certain circumstances a corporation may be convicted of crimes and punished by fines.

 Definition – nonviolent crime involving deceit, corruption, or breach of trust.
 Computer Crime – use of a computer to commit a crime.
 Racketeer Influenced and Corrupt
Organizations Act (RICO) – federal law intended to stop organized crime from infiltrating legitimate businesses.

 Larceny – trespassory taking and carrying away of personal property of another with the intent to deprive the victim permanently of the property.
 Embezzlement – taking of another's property by a person who was in lawful possession of the property.
 False Pretenses – obtaining title to property of another by means of representation one knows to be materially false; made with intent to defraud.


– committing larceny with the use or threat of force.

– under most modern statutes, an entry into a building with the intent to commit a felony.

– making threats to obtain money or property.


– offering money or property to a public official to influence the official's decision.

– intentional falsification of a document to defraud.

– knowingly issuing a check without funds sufficient to cover the check.





Defense of Person or Property – individuals may use reasonable force to protect themselves, other individuals, and their property.
Duress – coercion by threat of serious bodily harm; a defense to criminal conduct other than murder.
Mistake of Fact – honest and reasonable belief that conduct is not criminal.
Entrapment – inducement by a law enforcement official to commit a crime.

 Steps in Criminal Prosecution – generally include arrest, booking, formal notice of charges, preliminary hearing to determine probable cause, indictment or information, arraignment, and trial.




Fourth Amendment – protects individuals against unreasonable searches and seizures.
Fifth Amendment – protects persons against self-incrimination, double jeopardy, and being charged with a capital crime except by grand jury indictment.
Sixth Amendment – provides the accused with the right to a speedy and public trial, the opportunity to confront witnesses, process for obtaining witnesses, and the right to counsel.

Amendment
Fourth
Fifth
Sixth
Eighth
Protection Conferred
Freedom from unreasonable search and seizure
Due process
Right to indictment by grand jury for capital crimes*
Freedom from double jeopardy
Freedom from self-incrimination
Right to speedy, public trial by jury
Right to be informed of accusations
Right to confront witnesses
Right to present witnesses
Right to competent counsel
Freedom from excessive bail
Freedom from cruel and unusual punishment
*This right has not been applied to the States through the Fourteenth Amendment.