Question 1

Zack, the president of ABC Company, falsified documents to make it appear as if he had been granted stock options on certain dates, and he selected the dates after the fact, picking dates on which the stock price was low. Which of the following offenses, if any, did he commit?

Accepted Answer

Stock-option backdating occurs when an employee falsifies documents to make it appear as if the company had granted options on certain dates, but the dates are selected after the fact by looking backward for dates on which the stock price was low, thereby falsely inflating the net profits of the company.

Question 2

Which of the following is true regarding corporate executives being held personally liable for business crime?

Accepted Answer

The beneficiary of the crime is irrelevant, as corporate executives and officers can be found to be personally liable regardless of whether the crimes were committed for their personal benefit or for the benefit of the corporation.

Question 3

Which of the following is using fraudulent means to obtain information about someone's phone use?

Accepted Answer

Pretexting is using fraudulent means to obtain information about someone's phone use.

Question 4

A judge reports that a jury was "hung". What does the judge mean?

Accepted Answer

A jury that is unable to reach a verdict is known as a "hung jury."

Question 5

Courts have defined a pattern of racketeering under RICO as more than __________ action[s].

Accepted Answer

Demonstrating a claim under RICO requires proof of a pattern of racketeering, and Courts have defined a pattern as more than one action.

Question 6

Which of the following was created specifically to combat white-collar crime?

Accepted Answer

The Sarbanes-Oxley Act of 2002 was intended to curb white-collar crime.

Question 7

Which of the following occurs when a defendant makes a first appearance?

Accepted Answer

After the prosecutor files the complaint, the defendant makes the first appearance, which is the appearance before a magistrate who determines whether there was probable cause for the arrest.

Question 8

Which of the following is the misappropriation of trust funds or money held in a fiduciary capacity?

Accepted Answer

Defalcation is the misappropriation of trust funds or money held in a fiduciary capacity.

Question 9

Ed goes door-to-door selling magazine subscriptions. Ed knows, however, that he is simply taking money for subscriptions and has absolutely no intention of ever arranging for the provision of magazines. Which of the following offenses, if any, has he committed?

Accepted Answer

False pretense is a designed misrepresentation of existing facts or conditions by which a person obtains another's money or goods.

Question 10

Ordinarily, to obtain an arrest warrant, a law enforcement agent must demonstrate that there is ________ that a suspect committed or is planning to commit a crime.

Accepted Answer

Ordinarily, to obtain an arrest warrant, the law enforcement agent must demonstrate that there is probable cause, or a likelihood, that a suspect committed or is planning to commit a crime.

Question 11

Of which of the following must a defendant be informed before questioning?

Accepted Answer

Before questioning an office must inform the defendant of the following: "You have the right to consult an attorney before speaking to the police and have an attorney present during any questioning now or in the future."

Question 12

Which of the following is an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later investors?

Accepted Answer

A Ponzi scheme involves an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later ones.

Question 13

Carla learns that her employer, a healthcare facility, is committing fraud against the government by filing false Medicare claims. Under which of the following might she obtain a portion of any recovery obtained by the government?

Accepted Answer

The False Claims Act allows employees to sue employers on behalf of the federal government for fraud against the government with the employee retaining a share of the recovery as a reward for his or her efforts.

Question 14

Which of the following is a federal law providing extended penalties for criminal acts performed as part of an ongoing criminal organization?

Accepted Answer

The Racketeer Influenced and Corrupt Organizations (RICO) Act is a U.S. law that provides extended penalties for criminal acts performed as part of an ongoing criminal organization.

Question 15

Bank teller Ben receives $1,000 from a customer for deposit into the customer's bank account. Instead of placing the money into the customer's account, Ben puts it into his pocket. Which of the following offenses has he committed?

Accepted Answer

Embezzlement is a wrongful conversion of another's funds or property by one who is lawfully in possession of those funds or that property.

Question 16

Which amendment provides the right to a speedy and public trial?

Accepted Answer

The Sixth Amendment guarantees the right to a speedy and public trial.

Question 17

Which of the following is a person who illegally accesses or enters another person's or a company's computer system to obtain information or to steal money?

Accepted Answer

A hacker is a person who illegally accesses or enters another person's or a company's computer system to obtain information or to steal money.

Question 18

Which of the following was passed largely in response to business scandals of the 2000s, such as Enron?

Accepted Answer

Congress passed Sarbanes-Oxley largely in response to the business scandals of the early 2000s, such as Enron, WorldCom, and Global Crossing, as well as the accounting firm Arthur Andersen.

Question 19

Which of the following is a plea in which the defendant does not admit guilt but agrees not to contest the charges?

Accepted Answer

A defendant may also enter a plea of nolo contendere, whereby the defendant does not admit guilt but agrees not to contest the charges.

Question 20

Which of the following is true regarding the Fourteenth Amendment?

Accepted Answer

The Fourteenth Amendment extends most constitutional rights to defendants at the state level.

Quiz 5: Constitutional Law