The Legal Environment of Business, 8e (Kubasek)
Chapter 6 White-Collar Crime and the Business Community
1) ________ law is designed to punish an offender for causing harm to the public health, safety,
or morals.
A) Criminal
B) Tort
C) Social responsibility
D) Ethics
2) White-collar crimes are committed in a(n) ________ context
A) abstract
B) conditional
C) commercial
D) non-criminal
3) ________ crimes are considered a subcategory of misdemeanors; they are usually punishable
by a fine or incarceration for ________ or less.
A) Petty; six months
B) Petty; one year
C) Non-petty; six months
D) Non-petty; one year
4) Miranda rights, such as the right to remain ________ and to avoid self-________, were
developed in response to the U.S. Supreme Court’s decision in Miranda v. Arizona.
A) free on bond; incrimination
B) silent; incrimination
C) free on bond; reprobation
D) silent; reprobation
5) After the defendant has been arrested, he or she is taken to the police station for ________, the
filing of criminal charges against the defendant.
A) arrest
B) booking
C) parole
D) pleading
6) In terms of criminal procedure, after the criminal complaint is filed, the defendant makes his
or her ________ before a magistrate.
A) deposition
B) sworn statement
C) first appearance
D) formal answer
7) If the crime is a ________, the prosecutor issues an information, a formal written accusation
or charge.
A) felony
B) white-collar crime
C) misdemeanor
D) strict liability offense
8) In terms of criminal procedure in felony cases, the process begins with the prosecutor
presenting the facts surrounding the crime to a ________ jury.
A) petit
B) trial
C) mock
D) grand
9) After the indictment comes the ________, a formal appearance of the defendant in court to
answer the indictment by entering a plea of guilty or not guilty.
A) enlightenment
B) arraignment
C) estrangement
D) deferment
10) By making a plea of ________, the defendant does not admit ________ but agrees not to
contest the charges.
A) negligence per se; liability
B) post hoc ergo propter hoc; liability
C) res ipsa loquitur; guilt
D) nolo contendere; guilt
11) If the defendant declines a jury trial, the case is heard by a judge alone in a procedure called
a(n) ________ trial.
A) arbitration
B) Eighth Amendment (to the U.S. Constitution)
C) bench
D) Seventh Amendment (to the U.S. Constitution)
12) The burden of producing evidence of any affirmative defenses lies with the ________.
A) plaintiff
B) prosecution
C) jury
D) defendant
13) A defense in which the defendant admits to doing an act but claims some reason for not
being held responsible, such as insanity, self-defense, intoxication, or coercion, is known as a(n)
________ defense.
A) affirmative
B) plausible
C) rebuttal
D) prima facie
14) Police are allowed to set up legitimate “sting” operations to catch persons engaged in
criminal activity; such activities do not constitute ________.
A) debasement
B) entrapment
C) deferment
D) entitlement
15) ________ are created when the legislature decides that the need to protect the public
outweighs the traditional requirement of mens rea.
A) Regulatory crimes
B) Felonies
C) Misdemeanors
D) White-collar crimes
16) What crimes do not require mens rea?
A) felonies
B) strict liability crimes
C) street crimes
D) petty crimes
17) Punishment for regulatory crimes is generally ________.
A) more severe than the punishment for crimes that require mens rea
B) less severe than the punishment for crimes that require mens rea
C) the same as punishment for crimes that require mens rea
D) more severe than the punishment for strict liability crimes
18) Which of the following crimes involves engaging in war against the country or giving aid or
comfort to its enemies?
A) arraignment
B) misdemeanor
C) felony
D) treason
19) Misdemeanors are punishable by ________.
A) death
B) imprisonment of less than a year in a local jail
C) imprisonment in a penitentiary
D) imprisonment of at least five years
20) Petty crimes are considered a subcategory of ________.
A) treasons
B) misdemeanors
C) felonies
D) strict liability crimes
21) Criminal cases typically begin with the ________.
A) arraignment process
B) prosecutor’s issuance of Miranda rights
C) defendant’s first appearance before a magistrate
D) arrest of the defendant
22) An arrest warrant is issued by a ________.
A) bailiff
B) magistrate
C) police sergeant or captain
D) detective
23) Booking refers to ________.
A) seizure and holding under the authority of the law
B) the filing of criminal charges against the defendant
C) appearance of the defendant before a magistrate
D) a formal written accusation in a misdemeanor case
24) If Sam holds a gun to Jim’s head and tells him to forge his employer’s signature on a
company check or he will be shot, Jim can raise the defense of ________ to a charge of forgery.
A) false imprisonment
B) unconscionability
C) impossibility
D) duress
25) Which of the following refers to an amount of money paid to the court to ensure that the
defendant will return for trial?
A) surety
B) bail
C) bond
D) booking
26) Which of the following is true of misdemeanor cases?
A) They do not require mens rea.
B) The prosecutor presents the facts to a magistrate and an information is issued.
C) The prosecutor presents the facts of the crime to a grand jury.
D) They are punishable by imprisonment of more than two years.
27) A magistrate allows the release of a defendant without the posting of bail if the defendant
________.
A) does not have enough money to post bail
B) has sufficient ties to the community
C) displays remorse
D) has no prior offenses
28) The duty of a grand jury is to ________.
A) decide if there is enough evidence to justify bringing a defendant to trial
B) decide if the defendant is guilty beyond a reasonable doubt
C) make a finding of guilt
D) determine the sentence to be imposed in misdemeanor cases
29) Which of the following is true of pretrial diversion (PTD)?
A) The participant agrees to be supervised by the U.S. Probation Office.
B) The participant signs an agreement with the government admitting guilt.
C) The participant is necessarily prosecuted.
D) It entitles the participant to a trial before a petit jury.
30) A(n) ________ takes place when the defendant appears in court and enters a plea of guilty or
not guilty.
A) plea bargaining
B) arraignment
C) booking
D) nolo contendere
31) The result of a(n) ________ process is that the defendant pleads guilty to a lesser offense, in
exchange for which the prosecutor drops or reduces some of the initial charges.
A) indictment
B) nolo contendere
C) plea bargaining
D) arraignment
32) Rupert is charged with stealing an expensive watch set from a hypermarket. If, however, he
says that he was forced to do so at gunpoint, he is claiming the affirmative defense of ________.
A) mistake-of-fact
B) entrapment
C) insanity
D) duress
33) ________ is an affirmative defense claiming that the idea for the crime did not originate with
the defendant but was put into the defendant’s mind by a police officer or other government
official.
A) Duress
B) Insanity
C) Entrapment
D) Mistake-of-fact
34) Entrapment is an affirmative defense claiming that ________.
A) the defendant’s mental condition precluded him or her from understanding the wrongful
nature of the act committed or from distinguishing wrong from right in general
B) the idea for the crime did not originate with the defendant but was put into the defendant’s
mind by a police officer or other government official
C) the defendant was forced to commit the wrongful act by threat of immediate bodily harm or
loss of life
D) a mistake made by the defendant vitiates criminal intent
35) Punishment for the violation of the mens rea requirement is generally more severe than it is
for wrongful behavior.
36) Misdemeanors are considered a subcategory of petty crimes.
37) If the defendant is not informed of his or her legal rights at the time of the arrest, any
statements the defendant makes at the time of the arrest will be inadmissible at the defendant’s
trial.
38) The magistrate determines whether there was probable cause for the arrest at the time of
booking.
39) A pretrial diversion (PTD) participant signs an agreement with the government admitting
guilt.
40) The grand jury has the power to subpoena witnesses.
41) If the magistrate believes that the defendant has sufficient “ties to the community,” the
defendant may be released without posting bail.
42) A grand jury makes a finding of guilt but does not decide whether there is enough evidence
that the defendant committed the crime to justify bringing the defendant to trial.
43) Plea bargaining benefits a criminal by eliminating the risk of a greater penalty.
44) As opposed to civil trials, a defendant in a criminal case can be compelled to testify.
45) A nolo contendere plea can be used against the defendant in a civil suit.
46) Duress occurs when the idea for the crime did not originate with the defendant but was put
into the defendant’s mind by a police officer or other government official.
47) Distinguish between a felony, a misdemeanor, and a petty crime.
48) What are Miranda rights?
49) List the factors for determining whether to prosecute according to the Principles of Federal
Prosecution.
50) Describe the affirmative defense of entrapment and explain why it is not always easy to
prove.
51) A strict liability offense is an offense for which no ________ is required.
A) prosecution
B) proof beyond reasonable doubt
C) state of mind
D) punishment
52) The term “blue-sky laws” refers to ________ securities regulations.
A) state
B) federal
C) national
D) international
53) Which of the following statements is true of white-collar crimes?
A) Businesspersons who get caught automatically lose their status among their peers.
B) Corporate crime is facilitated because the adversarial relationship between the corporation
and the government agency “watchdog” is very strong.
C) A corporation’s personnel and operating procedures strongly discourage its employees from
committing these crimes.
D) Decision making is often distributed among various individuals, which makes these crimes
easy to commit.
54) Under the 1991 Sentencing Guidelines, the ________ is the greatest of the company’s gain,
the victim’s loss, or a dollar amount corresponding to an offense level.
A) total fine
B) base fine
C) culpability score
D) nolo contendere
55) Which of the following statements is true of the culpability score?
A) It is the greatest of the company’s gain, the victim’s loss, or a dollar amount corresponding to
an offense level.
B) It is the final amount that the corporation has to pay as fine.
C) It is not used to determine sentences for white-collar offenses.
D) It is determined by looking at a chart of potential mitigating and aggravating factors.
56) Which of the following led to the adoption of the 1991 Sentencing Guidelines for use by
federal judges?
A) public perception that judges were not giving long enough sentences to white-collar criminals
and were not imposing large enough fines
B) public perception that corporate executives were unfairly prejudicing the jury
C) public perception that judges were giving unfairly lengthy sentences to white-collar criminals
and were imposing fines that were too large
D) public perception that judges were not considering all relevant facts in the conviction of a
corporate executive
57) Strict liability offenses are those for which no state of mind is required.
58) An argument in support of corporate liability is the fact that corporate personnel are
expendable.