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CHAPTER 10
CRIMINAL LAW AND CYBER CRIME
ANSWERS TO CRITICAL THINKING QUESTIONS
IN THE FEATURE
MANAGERIAL STRATEGY—BUSINESS QUESTIONS
1. Why might a corporation’s managers agree to pay a large fine rather than to be
indicted and proceed to trial? Most corporate managers choose to pay the fine because they
2. How does a manager determine the optimal amount of legal research to undertake
to prevent her or his company from violating the many thousands of federal regulations?
Every manager is faced with the task of determining how best to use the limited resources at her
ANSWERS TO QUESTIONS
AT THE ENDS OF THE CASES
CASE 10.1—CRITICAL THINKING
SOCIAL
Who is in the best position to evaluate the credibility of the evidence and the witnesses
2 UNIT TWO: TORTS AND CRIMES
CASE 10.2—CRITICAL THINKING
LEGAL ENVIRONMENT
Why was Sisuphan convicted of embezzlement instead of larceny? What is the
difference between these two crimes? One of the key differences between embezzlement
and larceny has to do with the element of possession. Larceny involves the wrongful taking of
ETHICAL
Given that Sisuphan returned the cash, was it fair of the dealership’s general manager to
terminate Sisuphan’s employment? Why or why not? It is hard to imagine that Sisuphan’s
employer would ever be criticized on ethical grounds for firing Sisuphan in these circumstances.
Sisuphan had many responsibilities at the dealership, among them handling financial
CASE 10.3—LEGAL REASONING QUESTIONS
1. What three reasons did the defendant assert to support a request for a new trial?
Mauricio Warner was indicted on charges of obtaining individuals’ identities and using those
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2. What standard applies to an appellate court’s consideration of a contention that a trial
court’s evidentiary ruling was in error? The standard that applies to an appellate court’s
consideration of a contention that a trial court’s evidentiary ruling was in error is whether the
3. What were the appellate court’s conclusions with respect to the trial court’s rulings in
this case? What reasons support these conclusions? In the Warner case, the appellate
court concluded that the trial court’s evidentiary rulings at issue on appeal were not an abuse of
discretion.
The testimony of the polygraph examiner, and the question posed by the examiner to
Warner, addressed an issue that was to be decided by the jury—whether Warner knowingly filed
ANSWERS TO QUESTIONS IN THE REVIEWING FEATURE
AT THE END OF THE CHAPTER
1A.
State of mind
Yes, because he was the corporate officer responsible for the project and had the power to
prevent the criminal violation. Corporate directors and officers are personally liable for the
4 UNIT TWO: TORTS AND CRIMES
2A.
Theory of liability
Under the responsible corporate officer doctrine, a corporate officer can be held liable for a
crime because he was in a responsible relationship to the corporation and could have prevented
3A. Liability of employee
No, because he did not have the required mental state (mens rea) and was corporate officer in a
responsible position to prevent the criminal violation. Criminal liability requires a guilty act at the
4A. Ignorance of the law
No, because Hanousek was the corporate officer responsible for the project and should have
ANSWER TO DEBATE THIS QUESTION IN THE REVIEWING FEATURE
AT THE END OF THE CHAPTER
Because of overcriminalization, particularly by the federal government, Americans
may be breaking the law regularly without knowing it. Should Congress rescind many of
the more than four thousand federal crimes now on the books? Difficult times require
drastic measures. This nation now has over 300 million residents who move
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ANSWERS TO ISSUE SPOTTERS
AT THE END OF THE CHAPTER
1A. Dana takes her roommate’s credit card without permission, intending to charge
expenses that she incurs on a vacation. Her first stop is a gas station, where she uses
the card to pay for gas. With respect to the gas station, has she committed a crime? If so,
2A. Without permission Ben downloads consumer credit files from a computer
belonging to Consumer Credit Agency. He then sells the data to Dawn. Has Ben
ANSWERS TO BUSINESS SCENARIOS
AT THE END OF THE CHAPTER
10-1A. Types of cyber crimes
(a) This is vishing, a form of identity theft. The traditional crimes of theft (robbery,
burglary, larceny, and other) consist of wrongfully taking and carrying away another’s personal
(b) As in the previous problem, this is a form of identity theft. This problem describes a
factual situation referred to as phishing. In such a set of circumstances, once an unsuspecting
(c) Here is identity theft in the form of employment fraud. In this scenario, the goal is
to trick the recipient into revealing enough information for the perpetrator to steal his or her
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10-2A. Cyber scam
This is fraud committed in e-mail sent via the Internet. The elements of the tort of fraud are (1)
the misrepresentation of material facts or conditions made with knowledge that they are false or
with reckless disregard for the truth, (2) the intent to induce another to rely on the
misrepresentation, (3) justifiable reliance on the misrepresentation by the deceived party, (d)
ANSWERS TO BUSINESS CASE PROBLEMS
AT THE END OF THE CHAPTER
10–3A . Credit-card theft
Yes, there was sufficient evidence of credit- and debit-card theft for a court to uphold Turner’s
conviction. Although there were no eyewitnesses to say they saw Turner take Barden’s purse,
there was sufficient circumstantial evidence because Turner attempted to use Barden’s credit
card immediately after the purse was taken. Turner also had Barden’s credit and debit cards on
10–4A. BUSINESS CASE PROBLEM WITH SAMPLE ANSWER—Criminal liability
Yes, Green exhibited the required mental state to establish criminal liability. A wrongful mental
state (mens rea) is one of the elements typically required to establish criminal liability. The
required mental state, or intent, is indicated in an applicable statute or law. For example, for
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10–5A. White-collar crime
Yes, the acts committed by Matthew Simpson and the others, and described in this problem,
constitute wire and mail fraud. Federal law makes it a crime to devise any scheme that uses the
U.S. mail, commercial carriers (FedEx, UPS), or wire (telegraph, telephone, television, the
Internet, e-mail) with the intent to defraud the public.
Here, as stated in the facts, Simpson and his cohorts created and operated a series of
corporate entities to defraud telecommunications companies, creditors, credit reporting
agencies, and others. Through these entities, Simpson and the others used routing codes and
spoofing services to make long distance calls appear to be local. They stole other firms’ network
10–6A. Defenses to criminal liability
Yes, Barta could be absolved of the charge of conspiracy to commit bribery on a defense of
entrapment. This defense is designed to prevent police officers and other government agents
from enticing persons to commit crimes so that they can later be prosecuted for criminal acts.
For entrapment to succeed as a defense, both the suggestion and the inducement to commit the
crime must take place. The critical question is whether the person who is charged with the
commission of a crime was predisposed to commit it or did so only because the officer induced
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10–7A. Criminal procedures
Yes, it would be reasonable to admit evidence revealed in the “protective sweep” of the
defendant’s house in this problem during Norman’s trial on the arrest charges.
The Fourth Amendment to the U.S. Constitution protects the “right of the people to be
secure in their persons, houses, papers, and effects.” Under this amendment, before searching
private property, law enforcement officers must obtain a search warrant. Evidence obtained in
violation of this requirement is not admissible at trial. But a warrantless search can be
reasonable when probable cause and exigent circumstances exist. Thus, when an officer
10-8A. A QUESTION OF ETHICS—Criminal process
a. Peters can be perceived as an arrogant person—displaying a feeling of
superiority—and lacking empathy for others, particularly those victims who trusted him and
those whom he threatened. There is no indication that he had any sense of what it takes to live
in society without lying to, stealing from, and victimizing others. To behave ethically requires at
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ANSWERS TO LEGAL REASONING GROUP ACTIVITY QUESTIONS
AT THE END OF THE CHAPTER
10–9A. Cyber crime
(a) It goes without saying that the higher the anticipated cost of engaging in cyber
crime activity, the lower will be the amount demanded. In other words, heavy fines and long jail
sentences would have some deterrent effect. The real question is by how much. Many hackers
who bring down corporate and government computer systems are teenagers. They cost
(b) Protection against cyber crime starts with the awareness at management and staff
levels of the potential harm that could result. Even the temporary loss of a system’s functions
while its software is replaced due to a virus’s infection or other destructive event could prove