Legal Environment of Business 13th Edition Meiners Test Bank 1

Test Bank for Legal Environment of Business 13th
Edition Meiners Ringleb Edwards 1337095495

9781337095495
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Ch05 Criminal Law and Business
TRUEFALSE
1. A crime is an act that "violates human rights."
(A) True
(B) False
Answer : (B)
2. A crime may be a positive act that violates the penal law of a government.
(A) True
(B) False
Answer : (A)
3. A crime is an offense against the state.
(A) True
(B) False
Answer : (A)
4. The punishments for crimes are determined at the discretion of a court at trial.
(A) True
(B) False
Answer : (B)
5. The punishments for crimes are determined by legislatures.
(A) True
(B) False
Answer : (A)
6. Serious violations of common-law rights can result in private prosecution of criminal acts.
(A) True
(B) False
Answer : (B)
7. Criminal penalties are imposed for Class A offenses of civil laws.
(A) True
(B) False
Answer : (B)
8. Each state has a criminal code and the federal government also has a criminal code.
(A) True
(B) False
Answer : (A)
9. All crimes are felonies.
(A) True
(B) False
Answer : (B)
10. Misdemeanors are not considered to be crimes.
(A) True
(B) False
Answer : (B)
11. Legally, a misdemeanor is a crime.
(A) True
(B) False
Answer : (A)
12. Felonies are serious crimes generally punishable by more than a year in prison.
(A) True
(B) False
Answer : (A)
13. Misdemeanors are less serious crimes generally punishable by less than a year in prison.
(A) True
(B) False
Answer : (A)
14. When crimes are given class (Class A, Class B, etc,) or degree classifications, the higher level
classes (Class A) are subject to heavier penalties than lower level classes.
(A) True (B)
False
Answer : (A)
15. By definition, all crimes are against persons, not property.
(A) True
(B) False
Answer : (B)
16. Crimes against persons are more common than crimes against property.
(A) True
(B) False
Answer : (B)
17. It is believed that almost all crimes against persons are reported to the police.
(A) True
(B) False
Answer : (B)
18. Acts may be designed as crimes by either the federal or state governments.
(A) True
(B) False
Answer : (A)
19. State governments may designate crimes only after the federal government has given
permission to the states to make such laws.
(A) True (B)
False
Answer : (B)
20. What are called "victimless crimes" are actually not crimes at law.
(A) True
(B) False
Answer : (B)
21. To be a crime, there must be violence involved in the act, or the possibility of violence.
(A) True
(B) False
Answer : (B)
22. If a person is convicted of a crime, there must be some prison or jail time imposed.
(A) True
(B) False
Answer : (B)
23. Petty offenses are the same as misdemeanors in some jurisdictions.
(A) True
(B) False
Answer : (A)
24. Local governments may impose penalties for violations of local ordinances.
(A) True
(B) False
Answer : (A)
25. Violations of local ordinances may not result in jail time, only the possibility of a fine.
(A) True
(B) False
Answer : (B)
26. Government agencies in charge of enforcing criminal statutes decide what the penalties will be
for violations.
(A) True (B)
False
Answer : (B)
27. Legislatures decide the range of punishments that may be imposed for crimes.
(A) True
(B) False
Answer : (A)
28. The enforcement of criminal statutes is completely removed from politics.
(A) True
(B) False
Answer : (B)
29. All reported possible criminal acts are investigated and, if credible evidence exists, must be
prosecuted.
(A) True (B)
False
Answer : (B)
30. Law enforcement agencies may not investigate or prosecute suspected crimes due to lack of
resources.
(A) True
(B) False
Answer : (A)
31. To be convicted of a crime, it must be shown that the accused in fact committed the illegal act.
(A) True
(B) False
Answer : (A)
32. To be convicted of a crime, it must be shown that there was a necessary intent or state of mind
to commit the act.
(A) True (B)
False
Answer : (A)
33. The term actus reus means a wrongful deed or guilty act.
(A) True
(B) False
Answer : (A)
34. The term actus reus means criminal intent or wrongful purpose.
(A) True
(B) False
Answer : (B)
35. The term mens rea means criminal intent or wrongful purpose in the criminal act.
(A) True
(B) False
Answer : (A)
36. The term mens rea means "the defendant is guilty."
(A) True
(B) False
Answer : (B)
37. Criminal acts may be based on negligence.
(A) True
(B) False
Answer : (A)
38. Criminal negligence is carelessness amounting to a disregard of the rights and safety of others.
(A) True
(B) False
Answer : (A)
39. Criminal negligence is not a basis for prosecution for crimes; there must be intent, not
negligence, in the commission of a crime.
(A) True (B)
False
Answer : (B)
40. If you accidentally drive the wrong way on a highway and kill someone in an accident, since it
was an accident, there can be no criminal prosecution.
(A) True (B)
False
Answer : (B)
41. Most crimes must be prosecuted by the state within a certain time period or the right of the
state to prosecute for the crime has tolled.
(A) True (B)
False
Answer : (A)
42. Most crimes are subject to a statute of limitations that tells how long the government has to
prosecute for a crime or that ability expires.
(A) True
(B) False
Answer : (A)
43. The statute of limitations for crimes means there is a limit to the length of prison sentences that
accompanies various criminal statutes.
(A) True (B)
False
Answer : (B)
44. When a person is arrested for suspicion of a crime, they are to be read their Miranda rights.
(A) True
(B) False
Answer : (A)
45. The Miranda rights include being told that a person being accused of a crime has the right to be
represented by counsel.
(A) True (B)
False
Answer : (A)
46. The Miranda rights include being told that a person accused of a crime has the right to not say
anything.
(A) True (B)
False
Answer : (A)
47. If a person is accused of a crime, things they tell the arresting officers may be used as evidence
against the accused
(A) True
(B) False
Answer : (A)
48. When a person accused of a crime is read their Miranda rights that includes the fact that there
is a right to be released after posting bail.
(A) True (B)
False
Answer : (B)
49. A corporation cannot be charged with a crime since it is not a person.
(A) True
(B) False
Answer : (B)
50. Intoxication and insanity are possible defenses to criminal charges
(A) True (B)
False
Answer : (A)
51. Intoxication, when proven, is usually a successful defense to a criminal charge.
(A) True
(B) False
Answer : (B)
52. It is estimated that the insanity defense in criminal cases works in about 100,000 criminal
charges per year.
(A) True (B)
False
Answer : (B)
53. Self-defense can be used as a legal excuse in a criminal case for why harm was inflicted on
another person
(A) True
(B) False
Answer : (A)
54. The standards for gathering evidence are the same in criminal cases and civil cases.
(A) True
(B) False
Answer : (B)
55. Evidence that is gathered improperly may be used at trial, but the judge and jury must be
informed of the problems in obtaining the evidence.
(A) True (B)
False
Answer : (B)
56. The exclusionary rule applies to evidence that is improperly gathered.
(A) True
(B) False
Answer : (A)
57. Police may never search a person or enter property without a warrant.
(A) True
(B) False
Answer : (B)
58. Warrants are issued by district attorneys after they review the reasons provided by the policy
why a warrant is needed.
(A) True (B)
False
Answer : (B)
59. Warrants are issued by a judge or magistrate upon showing of probable cause by the law
enforcement authorities.
(A) True (B)
False
Answer : (A)
60. Warrants are needed to search for evidence, not to arrest suspects.
(A) True
(B) False
Answer : (B)
61. If evidence of a possible crime is presented to a prosecuting attorney, they must bring criminal
proceedings against the accused.
(A) True (B)
False
Answer : (B)
62. For a person to be charged with a crime, there must be an indictment by a grand jury.
(A) True
(B) False
Answer : (B)
63. Prosecuting attorneys only review evidence presented to them by the police or other authorities;
they do not do their own investigations.
(A) True
(B) False
Answer : (B)
64. When a prosecutor requests an indictment from a grand jury, one is usually issued.
(A) True
(B) False
Answer : (A)
65. If a person is arrested on suspicion of a crime, they are immediately taken to the grand jury for
consideration for an indictment.
(A) True (B)
False
Answer : (B)
66. When a person is arrested and accused of a crime, an appearance will be made before a judge
that is called an arraignment.
(A) True (B)
False
Answer : (A)
67. At an arraignment, a suspect may be asked to enter a plea.
(A) True
(B) False
Answer : (A)
68. A suspect may enter pleas of guilty or not guilty only.
(A) True
(B) False
Answer : (B)
69. Nolo contendere means there is no longer a cause for the authorities to consider further charges
against a suspect in a criminal matter.
(A) True (B)
False
Answer : (B)
70. A party accused of a crime may plead no contest or nolo contendere.
(A) True
(B) False
Answer : (A)
71. In most criminal cases, the person is not held in jail after the arraignment but before trial.
(A) True
(B) False
Answer : (A)
72. When a suspect is brought before a judge for an initial appearance, the judge may order the
suspect released.
(A) True (B)
False
Answer : (A)
73. In felony cases, it is not uncommon for the charges to be settled with a plea bargain rather than
go to trial.
(A) True (B)
False
Answer : (A)
74. If an employee steals money from an employer and has theft charges brought by the state, the
employer must pay for the cost of prosecution.
(A) True (B)
False
Answer : (B)
75. A large percentage of criminal cases are settled by plea bargains.
(A) True
(B) False
Answer : (A)
76. At a criminal trial, the standard for guilt is "beyond a reasonable doubt."
(A) True
(B) False
Answer : (A)
77. At a criminal trial, the standard for guilt is "all probable cause."
(A) True
(B) False
Answer : (B)
78. If a jury finds a defendant not guilty of criminal charges in a state court, the same charges may
be retried in a federal court.
(A) True (B)
False
Answer : (B)
79. White collar crime means a crime committed against a business.
(A) True
(B) False
Answer : (B)
80. White collar crimes refer to crimes so designated by Congress in a particular portion of the
federal criminal code.
(A) True (B)
False
Answer : (B)
81. Only individuals, not corporations, can be charged with white collar criminal offenses.
(A) True
(B) False
Answer : (B)
82. White collar crime cases may occur under federal law or under state law.
(A) True (B)
False
Answer : (A)
83. Defendants may be sentenced to prison for violating the antitrust laws.
(A) True
(B) False
Answer : (A)
84. Falsifying information about a bankruptcy can result in criminal prosecution.
(A) True
(B) False
Answer : (A)
85. The offer of money or the taking of money, or other things of value, to influence official actions
is called bribery.
(A) True (B)
False
Answer : (A)
86. Bribery charges only apply to the person who makes a bribe, not the person who accepts a bribe.
(A) True
(B) False
Answer : (B)
87. Copying designed clothing and selling them as the real thing can result in criminal
counterfeiting charges.
(A) True (B)
False
Answer : (A)
88. The theft or misappropriation of valuable business information, such as a trade secret, is the
crime of counterfeiting.
(A) True (B)
False
Answer : (B)
89. The unauthorized use of a credit card can result in criminal charges.
(A) True
(B) False
Answer : (A)
90. The unauthorized use of a credit card over the internet can result in criminal charges for
internet fraud.
(A) True (B)
False
Answer : (A)
91. The sabotage of computers can result in criminal charges.
(A) True
(B) False
Answer : (A)
92. The theft or misappropriation of valuable business information, such as a trade secret, is the
crime of economic espionage.
(A) True (B)
False
Answer : (A)
93. When a person in a position of trust steals money it is the crime of embezzlement.
(A) True
(B) False
Answer : (A)
94. When a person in a position of trust steals money it is the crime of bribery.
(A) True
(B) False
Answer : (B)
95. Violations of environmental laws are civil violations; there are no criminal penalties that can
result in prison time.
(A) True (B)
False
Answer : (B)
96. Financial fraud is a civil, not criminal, matter.
(A) True
(B) False
Answer : (B)
97. Criminal fraud can occur in private institutions and against the government.
(A) True
(B) False
Answer : (A)
98. The purchase or sale of securities based on information one has a fiduciary duty not to use is the
crime of money laundering.
(A) True (B)
False
Answer : (B)
99. The purchase or sale of securities based on information one has a fiduciary duty not to use can
be the crime of insider trading.
(A) True
(B) False
Answer : (A)
100. Mail fraud is usually the theft of postal services.
(A) True
(B) False
Answer : (B)
101. The crime of mail fraud is common since materials related to a fraud that are sent through the
mails can fall under the law.
(A) True (B)
False
Answer : (A)
102. An American citizen working for an American company in another country who is accused of a
crime will be tried under American law.
(A) True (B)
False
Answer : (B)
103. Foreigners working in other countries are subject to prosecution under the laws of those
countries, not under the terms of the law of their home countries..
(A) True (B)
False
Answer : (A)
104. Hiding the truth about the origins of income can be the crime of money laundering.
(A) True
(B) False
Answer : (A)
105. Prosecution for the crime of money laundering is uncommon.

(A) True (B)
False
Answer : (B)
106. If one earns income illegally, such as by selling drugs, one must report the income, not hide it.
(A) True
(B) False
Answer : (A)
107. The RICO statute is used almost exclusively against organized crime.
(A) True
(B) False
Answer : (B)
108. The application of RICO is to crimes of violence that accompany attempts to get large sums of
money.
(A) True (B)
False
Answer : (B)
109. RICO can be used for criminal and civil prosecutions.
(A) True
(B) False
Answer : (A)
110. In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was a right of
action by a private party under RICO to sue another party for treble damages for business losses
suffered by improper means.
(A) True (B)
False
Answer : (A)
111. In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was no cause of
action by a private company involved in bidding in a government auction. Only the government that
suffered a loss has a cause of action under RICO.
(A) True (B)
False
Answer : (B)
112. Willful evasion of tax obligations can be a felony.
(A) True
(B) False
Answer : (A)
113. Criminal prosecution for tax evasion is rare in practice.
(A) True
(B) False
Answer : (B)
114. Fraud committed on the telephone and Internet can both be subject to criminal prosecution.
(A) True
(B) False
Answer : (A)
115. Many criminal prosecutions are based on the use of electronic communications as a part of the
crime, not for the actual physical crime itself.
(A) True (B)
False
Answer : (A)
116. White collar crime in other developed nations does not appear to draw as much attention as it
does in the U.S.
(A) True
(B) False
Answer : (A)
117. Anti-Money Laundering steps must be taken by legitimate businesses.
(A) True
(B) False
Answer : (A)
118. If a business receives money that it believes to be "suspicious" it must report the transaction to
the relevant government authority.
(A) True (B)
False
Answer : (A)
119. To combat money laundering there are compliance programs called Know Your Customer or
Customer Due Diligence.
(A) True
(B) False
Answer : (A)
120. To combat money laundering the Treasury Department has a widely-used program called
"Track the Cash" that all financial institutions must follow.
(A) True
(B) False
Answer : (B)
121. Banks must report to the government all trans transactions by their customers that are for
more than $10,000.
(A) True (B)
False
Answer : (A)
122. Banks must report to the government all trans transactions by their customers that are for
more than $3,000.
(A) True (B)
False
Answer : (B)
123. Criminal liability for corporate acts is more common in France than in the U.S.
(A) True
(B) False
Answer : (B)
124. The Sentencing Guidelines for criminal convictions must be applied without variation.
(A) True
(B) False
Answer : (B)
125. Companies that have compliance programs can receive lower punishments for criminal
violations than those that do not, for the same action.
(A) True (B)
False
Answer : (A)
126. In a corporate compliance program, the Justice Department expects to see high-level persons
in the company with responsibility to oversee the program.
(A) True (B)
False
Answer : (A)
127. In a corporate compliance program, the Justice Department expects to see effective
communications about the program throughout the company.
(A) True (B)
False
Answer : (A)
128. In a corporate compliance program, the Justice Department expects to receive frequent reports
from the company that discuss successes and failures in implementing the program.
(A) True (B)
False
Answer : (B)
129. The Supreme Court has held the Sentencing Guidelines to be purely advisory; courts may
impose any sentence "reasonable."
(A) True (B)
False
Answer : (B)
130. Congress adopted the Sentencing Guidelines because it believed some judges were being too
harsh in the penalties imposed in many cases,
(A) True (B)
False
Answer : (B)
131. While the Sentencing Guidelines are advisory, they tend to restrict the range of sentences
judges impose in criminal convictions.
(A) True (B)
False
Answer : (A)
132. In U.S. v. Allmendinger, involving an insurance scam run by Allmendinger and others,
Allmendinger received a much longer prison sentence than a co-conspiriator, which he
appealed. The appeals court held that a long prison sentence was still justified.
(A) True (B)
False
Answer : (A)
appealed. The appeals court held that a long prison sentence would be overturned due to
Allmendinger's cooperation in the investigation of the crime.
(A) True (B)
False
Answer : (B)
appealed. The appeals court held the Sentencing Guidelines to be unconstitutional as it
violated equal protection.
(A) True (B)
False
Answer : (B)
MULTICHOICE
135. As discussed in the chapter, which would be the best definition of crime:
(A) an act that violates the right of another citizen or group of citizens
(B) a positive or negative act that is an offense against a state or federal government
(C) an act that "shocks the conscience of the court"
(D) an offense against rules of behavior prescribed in the constitution of a state or the nation
(E) none of the other choices
Answer : (B)
136. As discussed in the chapter, which would be the best definition of crime:
(A) an act that violates the right of another citizen or group of citizens
(B) an act that violates secure common law rights
(C) an act that "shocks the conscience of the court"
(D) an offense against rules of behavior prescribed in the constitution of a state or the nation
Answer : (E)
137. A positive or negative act that is an offense against a state or federal government is a(n):
(A) crime
(B) stare decisis
(C) offensive gesture
(D) offensive action
(E) illegal action
Answer : (A)
138. Criminal codes:
(A) define the scope of offenses against the public
(B) define the scope of offenses against defendants
(C) define the scope of defenses against the public
(D) define the scope of offenses minors can commit
(E) define the scope of defenses that may be used in court
Answer : (A)
139. Criminal codes:
(A) define the scope of defenses that may be used in court
(B) define the scope of offenses against defendants
(C) define the scope of defenses against the public
(D) define the scope of offenses minors can commit
(E) none of the other choices are correct
Answer : (E)
140. Criminal law is:
(A) primarily made up of statutes passed by Congress and state legislatures
(B) primarily from common law
(C) primarily from British law
(D) primarily made up of statutes derived from International law

(E) primarily made up of laws adapted from civil law
Answer : (A)
141. Criminal law is:
(A) primarily made up of laws adapted from civil law
(B) primarily from ancient Greek law
(C) primarily from British law
(D) primarily made up of statutes derived from International law
Answer : (E)
142. Each state has both:
(A) a criminal code and a friendly code
(B) a federal criminal code and a state criminal code
(C) a civil code and a free code
(D) a civil code and a law code
(E) a federal criminal code and a county criminal code
Answer : (B)
143. Each state has both:
(A) a criminal code and a nice code
(B) a federal criminal code and a county criminal code
(C) a civil code and a free code
(D) a civil code and a law code
Answer : (E)
144. Crimes and punishments are:
(A) determined by statues passed by federal and state legislatures
(B) determined by statues passed by federal and state courts

(C) determined by statues passed by federal and state judges
(D) determined by statues passed by state executives
(E) determined by statues voted on by federal executives
Answer : (A)
145. Crimes and punishments are:
(A) determined by statues voted on by federal executives
(B) determined by statues passed by federal and state courts
(C) determined by statues passed by federal and state judges
(D) determined by statues passed by state executives
Answer : (E)
146. The determination of what are crimes and the kinds of punishments is limited by:
(A) federal norms
(B) state norms
(C) international protocols
(D) federal and state constitutions
(E) federal and state officials
Answer : (D)
147. The determination of what are crimes and the kinds of punishments are is limited by:
(A) federal norms
(B) state norms
(C) international protocols
(D) federal and state administrative rules
(E) none of the choices are correct
Answer : (E)
148. Federal and state constitutions:

(A) set limits on crimes and punishments
(B) limit the determination of what civil laws are
(C) increase federal power at the expense of personal freedom
(D) set limits on how many charges may be brought against a business
Answer : (A)
149. Federal and state constitutions:
(A) limit the number of years chief magistrates can serve
(B) limit the determination of what civil laws are
(C) increase federal power at the expense of personal freedom
(D) set limits on how many charges may be brought against a business
Answer : (E)
150. In the United States, only can bring criminal charges.
(A) public institutions
(B) private citizens
(C) the government
(D) the Supreme Court
(E) private investigators
Answer : (C)
151. In the United States, only can bring criminal charges.
(A) public institutions
(B) private citizens
(C) private investigators
(D) the Supreme Court

Answer : (E)
152. Unlike in the United States, in Britain:
(A) private individuals cannot bring criminal charges against others
(B) private individuals can bring criminal charges against others
(C) no one can bring criminal charges against others
(D) minors cannot be tried in court
Answer : (B)
153. Unlike in the United States, in Britain:
(A) private individuals cannot bring criminal charges against others
(B) private corporations can bring civil charges against others
(C) no one can bring criminal charges against others
(D) minors cannot be tried in court
Answer : (E)
154. Which of the following can be a consequence of committing a crime:
(A) being removed from public office
(B) being disqualified from holding office
(C) being disqualified from owning a firearm
(D) being disqualified from voting in public elections
(E) all of the other choices are correct
Answer : (E)
155. A felony is generally defined as a crime that:
(A) may be punished by more than a year in prison
(B) may be punished by the possibility of time in prison, not just a fine
(C) violates a federal statute punishable by up to life in prison

(D) is classified as a class A offense of a state or federal statute
Answer : (A)
156. A felony is generally defined as a crime that:
(A) violates the "integrity of the law"
(B) may be punished by the possibility of time in prison, not just a fine
(C) violates a federal statute punishable by up to life in prison
(D) is classified as a class A offense of a state or federal statute
(E) none of the other choices are very good
Answer : (E)
157. A serious crime is a:
(A) felony
(B) misdemeanor
(C) stare decisis
(D) tort
(E) bankruptcy
Answer : (A)
158. A serious crime is a:
(A) bankruptcy
(B) misdemeanor
(C) stare decisis
(D) tort
Answer : (E)
159. A misdemeanor is generally:
(A) is not a crime

(B) can only involve the violation of a state, not federal, statute
(C) is an offense against the state that is not punishable by time in prison
(D) is an offense that does not involve bodily harm to another person
(E) is a crime punishable by less than a year in prison
Answer : (E)
160. A misdemeanor is generally:
(A) is not a crime
(B) can only involve the violation of a state, not federal, statute
(C) is an offense against the state that is not punishable by time in prison
(D) is an offense that does not involve bodily harm to another person
(E) none of the other choices are accurate
Answer : (E)
161. A crime that is punishable by less than a year in prison is a(n):
(A) misdemeanor
(B) felony
(C) assault
(D) tort
(E) none of the other specific choices are correct
Answer : (A)
162. Another term for misdemeanor is:
(A) small crime
(B) civil crime
(C) penal crime
(D) petty offense
(E) petty crime
Answer : (D)
163. Another term for misdemeanor is:
(A) small crime
(B) civil crime
(C) penal crime
(D) petty misdemeanor
Answer : (E)
164. Which of the following would not be likely to be considered to be a violent crime:
(A) assault
(B) robbery
(C) murder
(D) burglary
(E) all of the other choices are classified as violent felonies
Answer : (D)
165. Which of the following would not be likely to be considered to be a violent crime:
(A) assault
(B) robbery
(C) murder
(D) rape
(E) all of the other choices are classified as violent felonies
Answer : (E)
166. Misdemeanors, by definition, may:
(A) result in jail time
(B) result only in a fine
(C) be classified as a Class C felony
(D) not involve harm to persons, only to property

Answer : (A)
167. Misdemeanors, by definition, may:
(A) only be defined by federal legislation
(B) result only in a fine
(C) be classified as a Class C felony
(D) not involve harm to persons, only to property
Answer : (E)
168. In a victimless crime:
(A) no other party is injured
(B) only one other party is injured
(C) there are no fatalities, but there can be injuries
(D) there are no minors involved
Answer : (A)
169. In a victimless crime:
(A) there are no illegal drugs involved
(B) only one other party is injured
(C) there are no fatalities, but there can be injuries
(D) there are no minors involved
Answer : (E)
170. Illegal drug possession is an example of what is often called:
(A) legal activity
(B) a violent crime

(C) a victimless crime
(D) a minor misdemeanor
(E) a civil code violation
Answer : (C)
171. Victimless crimes can be:
(A) felonies or misdemeanors
(B) only felonies
(C) only misdemeanors
(D) tried in special courts
Answer : (A)
172. Victimless crimes cannot be:
(A) felonies
(B) misdemeanors
(C) tried in court
(D) tried by the Supreme Court
Answer : (E)
173. The classification of felonies:
(A) makes them easier to remember
(B) indicates the severity of the criminal charge
(C) is a remnant of the British system
(D) is a remnant of the colonial system
(E) is specified in the Declaration of Independence
Answer : (B)
174. First degree murder is:

(A) a misdemeanor
(B) less serious than second degree murder
(C) more serious than second degree murder
(D) spontaneous
(E) punishable only by a fine
Answer : (C)
175. Second degree murder is:
(A) a misdemeanor
(B) less serious than first degree murder
(C) more serious than first degree murder
(D) spontaneous
(E) punishable only by a fine
Answer : (B)
176. A violent crime is:
(A) one in which physical force is used
(B) one in which no physical force is used
(C) one in which no other party is harmed
(D) one in which no minors are involved
Answer : (A)
177. A violent crime is:
(A) one in which a private citizen bring charges against the government
(B) one in which no physical force is used
(C) one in which no other party is harmed
(D) one in which no minors are involved

Answer : (E)
178. The violation of an ordinance:
(A) must be defined by Congress
(B) generally means there may be a fine and up to one year in prison
(C) generally means there may be a fine, but no prison time
(D) generally means a citation, but no fine or prison time
Answer : (C)
179. The violation of an ordinance:
(A) must be defined by Congress
(B) generally means there may be a fine and up to one year in prison
(C) can be established by the police without need for a court decision
(D) generally means a citation, but no fine or prison time
Answer : (E)
180. Rules governing such matters as building regulations and zoning are called:
(A) federal administrative rules
(B) federal statutes
(C) misdemeanors
(D) local ordinances
Answer : (D)
181. Criminal offenses are defined by:
(A) governors or the president
(B) legislatures
(C) courts of appeal or supreme courts

(D) magistrates
(E) all of the other choices may make such decisions
Answer : (B)
182. Criminal offenses are defined by:
(A) governors or the president
(B) police departments
(C) courts of appeal or supreme courts
(D) magistrates
(E) none of the other choices are very good
Answer : (E)
183. Which of the following is an example of a white-collar crime:
(A) embezzlement
(B) bribery
(C) fraud
(D) violation of securities law
(E) all of the other specific choices are correct
Answer : (E)
184. After receiving reports from the police or other investigators prosecutors:
(A) decide whether or not to bring charges
(B) decide who is guilty
(C) decide how much the guilty party should be fined
(D) decide who will represent the plaintiff
Answer : (A)
185. It is difficult to keep politics out of decisions about which crimes to prosecute because:
(A) many state and local prosecutors are political positions

(B) many state prosecutors have been shown to take bribes
(C) many police fail to report crimes
(D) judges are worried about getting reelected
Answer : (A)
186. For a criminal conviction, it must be shown that the accused was found to have:
(A) actus rea
(B) res ipsa loquitor
(C) mens rea
(D) intentional negligence
(E) demurrer
Answer : (C)
187. For a criminal conviction, it must be shown that the accused was found to have:
(A) actus rea
(C) demurrer
(D) intentional negligence
Answer : (E)
188. When one commits a criminal act, that wrongful deed is:
(A) mens rea
(B) intentional negligence
(C) res ipsa loquitor
(D) actus reus
Answer : (D)
189. When one commits a criminal act, that wrongful deed is:
(A) mens rea
(B) intentional negligence
(D) demurrer
Answer : (E)
190. An actus reus is:
(A) a wrongful deed
(B) a nice deed
(C) an active deed
(D) a civil crime
(E) a civil violation
Answer : (A)
191. An actus reus is:
(A) a civil violation
(B) a nice deed
(C) an active deed
(D) a civil crime
Answer : (E)
192. Mens rea is:
(A) criminal intent
(B) criminal guilt
(C) final judgment
(D) thoughtful crime

Answer : (A)
193. Mens rea is:
(A) criminal reason
(B) criminal guilt
(C) final judgment
(D) thoughtful crime
Answer : (E)
194. If the government can prove beyond a reasonable doubt that 1) the accused committed the
illegal act, and 2) that there was necessary intent or state of mind to commit the act then:
(A) the accused will be convicted of the crime
(B) the accused might be convicted of the crime
(C) the plaintiff will lose the case
(D) the case may go to trial
(E) the accused will not get a lawyer
Answer : (A)
195. Criminal acts:
(A) need not be planned
(B) must be premeditated
(C) must be tried within a month of being committed
(D) must be tried by at least 5 judges
(E) need not be illegal
Answer : (A)
196. What is defined as a degree of careless amounting to a culpable disregard of rights and safety
of others:
(A) felony
(B) criminal negligence
(C) misdemeanor
(D) ordinance violation
Answer : (B)
197. What is defined as a degree of careless amounting to a culpable disregard of rights and safety
of others:
(A) felony
(B) Class B acts
(C) misdemeanor
(D) ordinance violation
Answer : (E)
198. Which of the following is correct:
(A) criminal acts must be planned
(B) criminal conduct must be intentional
(C) criminal conduct may arise from carelessness
(D) criminal conduct must involve actus rea
Answer : (C)
199. Which of the following is correct:
(A) criminal acts must be planned
(B) criminal conduct must be intentional
(C) criminal conduct cannot involve drunkenness
(D) criminal conduct must involve actus rea
Answer : (E)
200. If someone is very drunk and then, only because of their drunkenness, causes a fatal accident:
(A) there can be no crime because there was no willful consent
(B) there can be no crime because there was no mens rea
(C) there can be no crime because there was no culpable disregard for the rights of others
(D) there can be a crime because there was criminal negligence
Answer : (D)
201. Elonis posted violent comments to go with images of his ex-wife on Facebook. He also
threatened co-workers and children on the site. He was fired from his job and his ex-wife
got a protective order against him. He was arrested and charged with transmitting a threat
to injure another person. He appealed that his prosecution and conviction was not proper.
The Supreme Court held that:
(A) the conviction was proper as a jury could find that his violent statements showed
criminal intent.
(B) the conviction was proper as the jury could find that his statements showed that he knew
he intended to commit a criminal act.
(C) the conviction was reversed because there was no immediate threat of harm to anyone,
he was only making statements.
(D) the conviction was reversed as it was not shown that he was conscious of committing a
criminal act.
(E) none of the other choices are correct.
Answer : (D)
202. Elonis posted violent comments to go with images of his ex-wife on Facebook. He also
threatened co-workers and children on the site. He was fired from his job and his ex-wife
got a protective order against him. He was arrested and charged with transmitting a threat
to injure another person. He appealed that his prosecution and conviction was not proper.
The Supreme Court held that:
(A) the conviction was proper as a jury could find that his violent statements showed
criminal intent.
(B) the conviction was proper as the jury could find that his statements showed that he knew
he intended to commit a criminal act.
(C) the conviction was reversed because there was no immediate threat of harm to anyone,
he was only making statements.
(D) the conviction was reversed as the postings were protected speech under the First
Amendment.
(E) none of the other choices are correct.
Answer : (E)
203. The 1966 Supreme Court opinion relating to the Miranda rights holds that:
(A) persons accused of a crime must be informed of their right to remain silent
(B) persons accused of a crime must be informed of their right to be represented by counsel
(C) persons accused of a crime must be informed that statements they make can be used as evidence
against them
(D) all of the other specific choices are correct
Answer : (D)
(A) persons accused of a crime must be informed that they must answer all questions
(B) persons accused of a crime must be informed that they have no right to be represented
(C) persons accused of a crime must be informed that statements they make can be used as evidence
against them
Answer : (C)
(A) persons accused of a crime must be informed that they must answer all questions
(B) persons accused of a crime must be informed that they have no right to be represented
(C) persons accused of a crime must be informed of their right to be represented by counsel

Answer : (C)
206. Miranda rights for those arrested and accused of or suspected of a crime do not include:
(A) the right to be represented by counsel
(B) the right to be released
(C) being informed that statements made may be used against the accused
(D) the right to remain silent
(E) all of the other choices are included in the Miranda rights
Answer : (B)
207. If the government does not prosecute a criminal suspect the right to do so may be eliminated
by:
(A) the loss of evidence
(C) loss of probable cause
(D) statute of limitations
Answer : (D)
208. If a crime is not prosecuted within the time set by the , then the state loses the right to
bring suit:
(A) statute of limitations
(B) statute of limited time
(C) statute of dissipation
(D) statute of prosecution
(E) none of the other specific choices is correct
Answer : (A)
209. If a crime is not prosecuted within the time set by the , then the state loses the right to
bring suit:
(A) statute of probable cause

(B) statute of limited time
(C) statute of dissipation
(D) statute of prosecution
(E) none of the other specific choices is correct
Answer : (E)
210. The statute of limitations:
(A) varies with time
(B) varies by crime
(C) varies by county
(D) varies by state
(E) varies by district
Answer : (B)
211. The statute of limitations:
(A) varies with time
(B) varies by district
(C) varies by county
(D) varies by state
Answer : (E)
212. The statute of limitations for unsolved murders:
(A) may never end
(B) ends after 5 years by federal law
(C) ends after 10 years by federal law
(D) ends after 15 years by federal law
Answer : (A)
213. If the statute of limitations expires on the ability of the state to prosecute for a crime, it is said
that the statute has:
(A) dissipated
(B) tolled
(C) departed
(D) negated
Answer : (B)
214. Defenses of insanity and intoxication in criminal cases:
(A) are rarely successful
(B) apply to about twenty percent of cases
(C) are not allowed in Class A felony cases
(D) are not allowed in misdemeanor cases
Answer : (A)
215. If David flees the country to avoid being prosecuted for a crime:
(A) the clock on the statute of limitations keeps running
(B) the clock on the statute of limitations stops
(C) he cannot be prosecuted
(D) he loses his right to be represented by counsel
Answer : (B)
216. If Julia is accused of robbing a bank and she has witnesses testify that she was having her nails
done at the time the robbery took place then she is using a(n):
(A) Miranda right
(B) exclusionary rule
(C) alibi
(D) defensive defense
Answer : (C)
217. An alibi is an example of a(n):
(A) Miranda right
(B) defensive defense
(C) affirmative defense
(D) entrapment
(E) exclusionary rule
Answer : (C)
218. Defenses of insanity and intoxication in criminal cases:
(A) apply to about ten percent of cases
(B) apply to about twenty percent of cases
(C) are not allowed in Class A felony cases
(D) are not allowed in misdemeanor cases
Answer : (E)
219. In a criminal case, if evidence is not gathered properly, such as by a search that violates Fourth
Amendment rights, then at trial that evidence is:
(A) allowed to be referred to but not presented directly
(B) allowed only if probable cause is first established
(C) dropped under the exclusionary rule
(D) irrelevant since there can be no trial if there was an improper search
Answer : (C)
220. In a criminal case, if evidence is not gathered properly, such as by a search that violates Fourth
Amendment rights, then at trial that evidence is:
(A) allowed to be referred to but not presented directly
(B) allowed only if probable cause is first established
(C) allowed if found to be "critical to justice"
(D) irrelevant since there can be no trial if there was an improper search
Answer : (E)
221. If the chain of custody is broken when gathering evidence for a criminal case:
(A) the evidence is excluded
(B) the evidence is kept under special consideration
(C) the evidence is more powerful
(D) the evidence is less useful to the prosecution
(E) the evidence is less useful to the defendant
Answer : (A)
222. Unjust searches are violations of:
(A) privacy interests
(B) the First Amendment
(C) the Second Amendment
(D) property interests
(E) monetary interests
Answer : (A)
223. Unjust searches are unlawful because they are violations of:
(A) privacy interests
(B) the First Amendment
(C) the Second Amendment
(D) property interests
(E) monetary interests

Answer : (A)
224. Under the exclusionary rule:
(A) improperly gathered evidence may not be used at trial
(B) properly gathered evidence is categorized by type
(C) improperly gathered evidence is permitted if it is crucial to the case
(D) improperly gathered evidence is permitted only under special circumstances
Answer : (A)
225. Under the exclusionary rule:
(A) improperly gathered evidence must be gathered again with proper techniques
(B) properly gathered evidence is categorized by type
(C) improperly gathered evidence is permitted if it is crucial to the case
(D) improperly gathered evidence is permitted only under special circumstances
Answer : (E)
226. For the police to use a warrant to search for evidence they think may exist that is relevant to a
suspected criminal act:
(A) the chief of police must issue a warrant for the officers to use
(B) a judge must issue a warrant based on probable cause
(C) no warrant is needed if the police determine probable cause exists
(D) the district attorney must issue the police a warrant
Answer : (B)
227. Probable cause is:
(A) necessary to obtain a warrant
(B) not necessary to obtain a warrant

(C) important for the defense
(D) cause for exclusion
Answer : (A)
228. You are arrested by the police, who suspect you of a crime:
(A) the police decide if you will be charged with a crime
(B) a government prosecutor will decide if you will be charged with a crime
(C) a judge will decide if you will be charged with a crime
(D) the police review board decide if you will be charged with a crime
Answer : (B)
229. You are arrested by the police, who suspect you of armed robbery:
(A) the police decide if you will be charged with a crime
(B) the attorney general will decide if you will be charged with a crime
(C) a judge will decide if you will be charged with a crime
(D) the police review board decide if you will be charged with a crime
Answer : (E)
230. In cases where a person is charged with a felony:
(A) there must be a grand jury indictment
(B) there must be a grand jury indictment only if it is a federal case
(C) there must be a grand jury indictment only if it is a state case
(D) there need not be a grand jury indictment, but could be one
Answer : (D)
231. In cases where a person is charged with a felony, if there is to be a trial:

(A) there must be a grand jury indictment
(B) there must be a grand jury indictment only if it is a federal case
(C) there must be a grand jury indictment only if it is a state case
(D) there must be a grand jury indictment if the crime carries the possibility of more than ten years
in prison
Answer : (E)
232. A grand jury:
(A) reviews potential felony cases
(B) reviews past felony cases
(C) reviews potential civil cases
(D) reviews past civil cases
Answer : (A)
233. A grand jury:
(A) determines probably cause
(B) reviews past felony cases
(C) determines guilt
(D) determines how long the trial will take
Answer : (A)
234. When a person accused of a crime by the police makes an initial appearance in court and the
government attorney presents the criminal charges, it is called:
(A) an indictment
(B) a Miranda rights
(C) an arraignment
(D) a nolo contendere

(E) a pleading
Answer : (C)
235. When a person accused of a crime by the police makes an initial appearance in court and the
government attorney presents the criminal charges, the court appearance is called:
(A) an indictment
(B) a Miranda rights
(C) a pleading
(D) a nolo contendere
Answer : (E)
236. The initial court appearance for a person accused of a crime during which the government
attorney presents the criminal charges is called:
(A) nolo contendere
(B) an appearance
(C) an arraignment
(D) a demurrer
(E) an indictment
Answer : (C)
237. The initial court appearance for a person accused of a crime during which the government
attorney presents the criminal charges is called:
(A) nolo contendere
(B) an appearance
(C) an indictment
(D) a demurrer
Answer : (E)
238. If one appears before a judge when accused of a crime and enters a plea in response to the
charges, the choice of pleas made does not include:
(A) guilty
(B) nolo contendere
(C) not guilty
(D) demurrer
(E) all of the other choices are possible pleas
Answer : (D)
239. Nolo contendere means:
(A) no contest
(B) guilty
(C) innocent
(D) contested
Answer : (A)
240. Nolo contendere means:
(A) no trial
(B) guilty
(C) innocent
(D) contested
Answer : (E)
241. A settlement conference is:
(A) an attempt to resolve a matter without trial, but under the supervision of a judge
(B) an attempt to resolve a matter without trial and without a judge
(C) an attempt to pay off the defendant
(D) an attempt to offer the prosecution money to make them drop the case
Answer : (A)
242. A settlement conference is:
(A) an attempt to resolve a matter with a short trial
(B) an attempt to resolve a matter without trial and without a judge
(C) an attempt to pay off the defendant
(D) an attempt to offer the prosecution money to make them drop the case
Answer : (E)
243. If a person is charged with a crime, rather than going through trial, there is often an
agreement reached by the defendant and prosecutor that is called:
(A) an arraignment
(B) nolo contendere
(C) demurrer
(D) plea bargain
Answer : (D)
244. A plea bargain allows:
(A) a matter to be settled under the supervision of a judge without a trial
(B) a matter to be settled by a jury without a trial
(C) a matter to be settled with a short trial
(D) a matter to be settled by the attorneys without the supervision of a judge
Answer : (A)
245. In contrast to civil trial discovery proceedings, criminal discovery proceedings:
(A) focus on reducing surprises

(B) focus on reversing verdicts
(C) focus on making all parties comfortable
(D) involve disclosing only a subset of information to the other side
(E) involve disclosing everything to the other side
Answer : (D)
246. Under the Constitution, any exculpatory evidence:
(A) must be disclosed to the defendant
(B) must not be disclosed to the defendant
(C) must be disclosed to the judge before the trial
(D) must be formally written
(E) must be recorded in front of a notary
Answer : (A)
247. Under the Constitution, any must be disclosed to the defendant.
(A) false evidence
(B) important evidence
(C) exculpatory evidence
(D) illegally collected evidence
Answer : (C)
248. Under the Constitution, any must be disclosed to the defendant.
(A) false evidence
(B) important evidence
(C) incriminating evidence
(D) illegally collected evidence
Answer : (E)
249. Exculpatory evidence is evidence which:
(A) might show that the defendant is guilty
(B) might show that the defendant is not guilty
(C) will not show that the defendant is not guilty
(D) makes the prosecution look bad
(E) makes the prosecution look good
Answer : (B)
250. In a criminal case the defendant:
(A) has no obligation to disclose evidence to the prosecution that shows the defendant is guilty
(B) has an obligation to disclose evidence to the prosecution that shows the defendant is guilty
(C) has an obligation to disclose evidence to the prosecution that shows the prosecution is guilty
(D) has to present all incriminating evidence to the jury
Answer : (A)
251. In a criminal trial, to be found guilty, the standard is guilt:
(A) by a preponderance of the evidence
(B) by a convincing majority of the evidence
(C) beyond a reasonable doubt
(D) upon the word of the court
Answer : (C)
252. In a criminal trial, to be found guilty, the standard is guilt:
(A) by a preponderance of the evidence
(B) by a convincing majority of the evidence
(D) upon the word of the court

Answer : (E)
253. In a criminal case, "beyond a reasonable doubt" means that:
(A) the evidence is good enough to hold up in a civil trial
(B) the evidence would convince an uneducated person of the defendant's guilt
(C) the evidence fully satisfies and convinces the court to a moral certainty
(D) the evidence partially satisfies and convinces the court to a moral certainty
Answer : (C)
254. A mistrial is when:
(A) evidence is not properly collected and so cannot be used in court
(B) evidence is presented without proper documentation
(C) the jury cannot agree on a verdict
(D) the judge decides on a verdict that is different than the verdict given by the jury
Answer : (C)
255. If the jury cannot decide on a verdict then a is declared.
(A) mistrial
(B) false trial
(C) hung trial
(D) maltrial
(E) lost trial
Answer : (A)
256. If the jury cannot decide on a verdict then a is declared.
(A) lost trial
(B) false trial

(C) hung trial
(D) maltrial
Answer : (E)
257. A white collar crime means:
(A) one in violation of Section 1981 of the U.S. Code
(B) one in violation of several different portions of the U.S. Code
(C) any number of crimes committed by person of respectability in their occupation
(D) a business-related crime that is defined as a felony
Answer : (C)
258. Which of the following would not be considered to be white collar crime:
(A) bankruptcy fraud
(B) embezzlement
(C) burglary
(D) insider trading
(E) wire fraud
Answer : (C)
259. Which of the following would not be considered to be white collar crime:
(A) bankruptcy fraud
(B) embezzlement
(C) wire fraud
(D) insider trading
(E) all of the other choices would be white collar crimes
Answer : (E)
260. The Sherman Act and Clayton Act (2004) allow prison terms to be imposed on:
(A) those involved in burglaries
(B) those involved in anticompetitive practices
(C) those involved in blue collar crime
(D) those involved in drug trafficking
Answer : (B)
261. In recent years antitrust prosecutions have:
(A) remained at low levels
(B) increased
(C) decreased
(D) decreased in most areas of the country, but risen in New York and California
Answer : (B)
262. When a person or corporation hides or lies about assets in bankruptcy proceedings it is called:
(A) bribery
(B) embezzlement
(C) bankruptcy fraud
(D) racketeering
(E) financial fraud
Answer : (C)
263. When a person or corporation hides or lies about assets in bankruptcy proceedings it is called:
(A) bribery
(B) embezzlement
(C) financial fraud
(D) racketeering

Answer : (E)
264. Bankruptcy fraud occurs when:
(A) a person or corporation hides or lies about assets in bankruptcy proceedings
(B) creditors are given false information
(C) illegal pressure is applied to bankruptcy petitioners
Answer : (D)
265. The offer or taking of money, goods or other things of value to influence official actions is:
(A) bribery
(B) economic espionage
(C) embezzlement
(D) financial fraud
(E) racketeering
Answer : (A)
266. Bribery is:
(A) the offer or taking of money, goods or other things of value to influence official actions
(B) illegal pressure on debtors
(C) economic espionage
(D) legal in some states
(E) all of the other choices are correct
Answer : (A)
267. The copying of a genuine item without authorization, especially when passed off as the original
item is:
(A) economic espionage
(B) fraud
(C) counterfeiting
(D) insider trading
Answer : (C)
268. The copying of a genuine item without authorization, especially when passed off as the original
item is:
(A) economic espionage
(B) fraud
(C) racketeering
(D) insider trading
Answer : (E)
269. Counterfeiting is:
(A) the copying of a genuine item without authorization, especially when passed off as the original
item
(B) always more serious than economic espionage
(C) legal with the proper permits
(D) a crime only when it involves copying a product designed in the United States
(E) all of the other specific choices are correct
Answer : (A)
270. Credit card fraud is:
(A) the unauthorized use of a credit card to obtain goods, services, or cash
(B) the authorized use of a credit card to obtain goods, services, or cash by a minor
(C) the copying of a genuine item without authorization
(D) using a false ID to obtain a credit card
Answer : (A)
271. The unauthorized use of a credit card to obtain goods, services, or cash is:
(A) credit card fraud
(C) identity fraud
(D) consumer fraud
(E) embezzlement
Answer : (A)
272. The unauthorized use of a credit card to obtain goods, services, or cash is:
(A) embezzlement
(C) identity fraud
(D) consumer fraud
Answer : (E)
273. Computer and internet fraud involves:
(A) pornography
(B) unauthorized use of computers and computer files
(C) tax evasion
(D) consumer fraud
Answer : (B)
274. The theft of valuable business information, such as a trade secret is:
(A) embezzlement
(C) internet fraud
(D) insider trading

Answer : (B)
275. The theft of valuable business information, such as a trade secret is:
(A) embezzlement
(B) racketeering
(C) internet fraud
(D) insider trading
Answer : (E)
276. Economic espionage is:
(A) the theft of valuable business information
(B) the theft of personal information
(C) unauthorized use of company computers
(D) insider trading
(E) giving false information to clients
Answer : (A)
277. Economic espionage is:
(A) giving false information to clients
(B) the theft of personal information
(C) unauthorized use of company computers
(D) insider trading
Answer : (E)
278. When someone is in a position of trust with money and they take it for their use, it is:
(A) embezzlement
(B) insider trading

(C) racketeering
(D) economic espionage
Answer : (A)
279. When someone is in a position of trust with money and they take it for their use, it is:
(A) money laundering
(B) insider trading
(C) racketeering
Answer : (E)
280. Embezzlement is when:
(A) someone is in a position of trust with money and they take it for their use
(B) someone gives detailed manufacturing information to competitors
(C) someone leaks information to the press
(D) someone accepts a bribe in return for services
(E) someone donates money illegally to a political campaign
Answer : (A)
281. Embezzlement is when:
(A) someone donates money illegally to a political campaign
(B) someone gives detailed manufacturing information to competitors
(C) someone leaks information to the press
(D) someone accepts a bribe in return for services
Answer : (E)
282. Indiscriminate hazardous waste dumping, illegal handling of hazardous substances and
international smuggling of CFC refrigerants are all examples of:
(A) environmental law violations
(B) civil torts
(C) civil violations
(D) environmental procedure violations
(E) green violations
Answer : (A)
283. Financial fraud occurs when:
(A) someone uses a false social security number to get a credit card
(B) someone is refused a loan because of their race
(C) someone is refused a loan because of a previous criminal conviction
(D) someone commits fraud in loans, financial documents or mortgages
Answer : (D)
284. Improperly collecting benefits intended for victims of a natural disaster, such as Hurricane
Katrina, is an example of:
(A) embezzlement
(B) insider trading
(C) money laundering
(D) personal fraud
(E) government fraud
Answer : (E)
285. Improperly collecting benefits intended for victims of a natural disaster, such as Hurricane
Katrina, is an example of:
(A) embezzlement
(B) insider trading

(D) personal fraud
Answer : (E)
286. Healthcare fraud involves:
(A) malpractice
(B) under qualified doctors charging rates too high given the market value of their services
(C) over-billing by hospitals, doctors, ambulance services, laboratories, and pharmacies
(D) ambulance chasing attorneys
Answer : (C)
287. When a person deals in a security when in possession of non-public information, and they have
an obligation not to reveal or use the information it is:
(A) embezzlement
(B) racketeering
(D) insider trading
(E) money fraud
Answer : (D)
288. When a person deals in a security when in possession of non-public information, and they have
an obligation not to reveal or use the information it is:
(A) embezzlement
(B) racketeering
(D) money fraud
Answer : (E)
289. When a insurance policy holder lies about the condition of their property to get lower rates it is
an example of:
(A) insurance fraud
(B) banking fraud
(C) embezzlement
(D) money fraud
(E) money laundering
Answer : (A)
290. When a insurance policy holder lies about the condition of their property to get lower rates it is
an example of:
(B) banking fraud
(C) embezzlement
(D) money fraud
Answer : (E)
291. A company bids on projects and submits false information in the bids in order to help win the
bids. When this "scheme or artifice" occurs, there would most likely be a conviction for:
(B) mail fraud
(C) insider trading
(D) embezzlement
Answer : (B)
292. Sending materials containing false information through the post office can lead to a conviction
of:
(A) embezzlement
(B) money laundering
(C) mail fraud

(D) insider trading
(E) false representation
Answer : (C)
293. Sending materials containing false information through the mails can lead to a conviction of:
(A) embezzlement
(B) money laundering
(C) false representation
(D) insider trading
Answer : (E)
294. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the
income, besides tax problems, there may be a crime of:
(A) embezzlement
(B) insider trading
(C) fraud
(D) money laundering
(E) none of the other choices are likely to be correct
Answer : (D)
295. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the
income by creating a fictional paper trail, besides tax problems, there may be a crime of:
(A) embezzlement
(B) insider trading
(C) insurance fraud
(E) none of the other choices are likely to be correct
Answer : (E)
296. Money laundering is:
(A) hiding the truth about the origins of money
(B) embezzlement
(C) hiding the truth about the amount of taxes paid
(D) hiding money in offshore tax havens
Answer : (A)
297. The Racketeer Influenced and Corrupt Organizations (RICO) Act provides:
(A) an extra weapon against organized crime
(B) an ineffective weapon against organized crime
(C) an extra weapon against embezzlement
(D) an extra weapon against environment violations
Answer : (A)
298. A law that was originally intended as a weapon against organized crime, but has come to have
broader application, including in civil claims for a wide range of activities is:
(A) Laundering of monetary Instruments Act
(B) Financial Abuse Act
(C) Racketeer Influenced and Corrupt Organizations Act
(D) Federal Bribery and Corruption Act
Answer : (C)
299. Racketeering includes:
(A) bribery
(B) extortion
(C) mail fraud

Answer : (D)
300. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents related
to tax lien purchases, the Supreme Court held that:
(A) the plaintiffs could state a claim as victims of the fraud and sue under RICO
(B) the plaintiffs could not state a claim as victims of the fraud and sue under RICO
(C) RICO did not apply to the case
(D) RICO is unconstitutional
Answer : (A)
301. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents related
to tax lien purchases, the Supreme Court held that:
(A) RICO's text provides no basis for imposing a first-party reliance requirement
(B) RICO's text provides a basis for imposing a first-party reliance requirement
(C) RICO is unconstitutional
(D) RICO does not apply under these circumstances
Answer : (A)
302. Securities fraud includes:
(A) market rigging
(B) theft of accounts from clients of securities firms
(C) violations of securities laws
Answer : (D)
303. Failing to file tax returns, failing to report all income and overstating expenses are examples
of:
(A) tax evasion
(B) embezzlement (C)
telephone fraud (D)
money laundering (E)
wire fraud
Answer : (A)
304. Which of the following can be an example of tax evasion:
(A) failing to file tax returns
(B) failing to report all income
(C) overstating expenses
Answer : (D)
305. Fraud committed by electronic means may fall under:
(A) internet fraud
(B) wire fraud
(C) telephone fraud
(D) telemarketing fraud
(E) any of the other choices
Answer : (E)
306. Anti-money laundering goals include which of the following:
(A) identifying the beneficial owner of all assets
(B) tracing the transmission of assets
(C) reporting suspicious transactions

Answer : (D)
307. Identifying the beneficial owner of all assets, tracing the transmission of assets and reporting
suspicious transactions are all goals of:
(A) anti-embezzlement measures
(B) anti-fraud measures
(C) anti-money laundering measures
(D) anti-theft measures
(E) anti-wire fraud measures
Answer : (C)
308. The beneficial owner of an asset is:
(A) the person who makes money from the asset
(B) the person listed on the legal paperwork as the owner
(C) the person who buys the asset
(D) the person who sells the asset
(E) the person who enjoys the benefits of ownership
Answer : (E)
309. France's assessment of criminal liability for corporations differs from the U.S.'s assessment in
that:
(A) the requirement that individuals play a key function within a corporation's decision-making
structure before liability attaches significantly restricts corporate criminal liability
(B) the requirement that individuals play a key function within a corporation's decision-making
structure before liability attaches significantly increases corporate criminal liability
(C) the requirement that individuals play a key function within a corporation's decision-making
structure before liability means that there is no corporate criminal liability
(D) it has no requirement that individuals play a key function within a corporation's decision-making
structure before liability attaches
Answer : (A)
310. Which of the following is listed as suspicious activity by the Internal Revenue Service:
(A) the customer pays cash for products/services using bills having an unusual or chemical-like odor
(B) a 16-year-old brings bags of cash to a money transmitter to make a transfer from New York City
to Miami
(C) a customer conducting an $11,000 cash transaction attempts to bribe a Money Services Business
employee not to file a Currency Transaction Report
Answer : (D)
311. Failing to file a suspicious activity report:
(A) can lead to both civil and criminal penalties
(B) can only lead to civil penalties
(C) can only lead to criminal penalties
(D) cannot lead to more than one penalty, regardless of the number of violations
Answer : (A)
312. Which of the following is not a Justice Department factor for an effective corporate compliance
program that can help a company reduce legal problems and punishment when violations occur:
(A) when offenses occur, steps taken to respond and to prevent further offenses
(B) effective communication of standards and procedures to all employees
(C) consistent communication with Justice about program achievements
(D) high-level persons in the organization have responsibility to oversee compliance
(E) all of the other choices are part of an effective program
Answer : (C)
313. Which of the following is not a Justice Department factor for an effective corporate compliance
program that can help a company reduce legal problems and punishment when violations occur:
(A) when offenses occur, steps taken to respond and to prevent further offenses
(B) effective communication of standards and procedures to all employees

(C) consistent enforcement of standards within the organization
(D) high-level persons in the organization have responsibility to oversee compliance
(E) all of the other choices are part of an effective program
Answer : (E)
314. The Sentencing Guidelines were created to:
(A) make sentencing consistent across the country
(B) prevent favoritism to state residents in cases with out-of-state residents
(C) make sentencing consistent within each state, but not across the whole country
(D) prevent bias against foreign companies
Answer : (A)
315. The use of whistleblower "hotlines" that allow employees to report possible legal problems with
a company anonymously:
(A) violate Fourth Amendment search and seizure rules
(B) are used in the U.S.
(C) are used in France and other European countries, which is where the practice began
(D) are used in both the U.S. and European countries such as France
Answer : (B)
316. The use of whistleblower "hotlines" that allow employees to report possible legal problems with
a company anonymously:
(A) violate Fourth Amendment search and seizure rules
(B) violate the U.N. rules on human rights
(C) are widely used in France and other European countries, which is where the practice began
(D) are widely used in both the U.S. and European countries such as France
Answer : (E)
317. The Supreme Court has held that the Sentencing Guidelines:
(A) are unconstitutional
(B) are advisory
(C) must be followed closely in criminal cases
(D) must be followed closely in cases of crimes by corporations
Answer : (B)
appealed. The appeals court held that the sentence:
(A) violated the Sentencing Guidelines and would be recalculated
(B) was justified because Allmendinger did not cooperate in the investigation
(C) was justified because the loss suffered by victims exceeded $100 million
(D) violated equal protection of the 14th amendment as the defendants were equally guilty so
the sentences should be similar for all
Answer : (B)
appealed. The appeals court held that the sentence:
(A) violated the Sentencing Guidelines and would be recalculated
(B) was not justified because Allmendinger cooperated in the investigation of the crime
(C) was justified because the loss suffered by victims exceeded $100 million
(D) violated equal protection of the 14th amendment as the defendants were equally guilty so
the sentences should be similar for all
Answer : (E)
appealed. The appeals court held:
(A) that his sentenced was to be reduced because of "extensive cooperation" with authorities
investigating the matter
(B) that because the Sentencing Guidelines were unconstitutional, he should be resentenced
(C) that because no personal injury only financial, was inflicted on any person, the sentence
should be reduced
(D) the sentence was justified under the Sentencing Guidelines
Answer : (D)
appealed. The appeals court held:
(A) that his sentenced was to be reduced because of "extensive cooperation" with authorities
investigating the matter
(B) that because the Sentencing Guidelines were unconstitutional, he should be resentenced
(C) that because no personal injury was inflicted on any person, only financial injury, the
sentence should be reduced
(D) the sentence should be increased to a higher level than originally imposed because the
losses involved exceeded $100 million
Answer : (E)

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Test Bank for Legal Environment of Business 13th

Edition Meiners Ringleb Edwards 1337095495

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Ch05 Criminal Law and Business

1. A crime is an act that "violates human rights."

3. A crime is an offense against the state.

5. The punishments for crimes are determined by legislatures.

7. Criminal penalties are imposed for Class A offenses of civil laws.

9. All crimes are felonies.

10. Misdemeanors are not considered to be crimes.

11. Legally, a misdemeanor is a crime.

(A) True (B)

15. By definition, all crimes are against persons, not property.

(A) True (B)

23. Petty offenses are the same as misdemeanors in some jurisdictions.

(A) True (B)

28. The enforcement of criminal statutes is completely removed from politics.

(A) True (B)

(A) True (B)

36. The term mens rea means "the defendant is guilty."

37. Criminal acts may be based on negligence.

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

49. A corporation cannot be charged with a crime since it is not a person.

50. Intoxication and insanity are possible defenses to criminal charges

(A) True (B)

51. Intoxication, when proven, is usually a successful defense to a criminal charge.

(A) True (B)

(A) True (B)

56. The exclusionary rule applies to evidence that is improperly gathered.

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

67. At an arraignment, a suspect may be asked to enter a plea.

68. A suspect may enter pleas of guilty or not guilty only.

(A) True (B)

70. A party accused of a crime may plead no contest or nolo contendere.

(A) True (B)

(A) True (B)

(A) True (B)

75. A large percentage of criminal cases are settled by plea bargains.

(A) True (B)

79. White collar crime means a crime committed against a business.

(A) True (B)

84. Falsifying information about a bankruptcy can result in criminal prosecution.

(A) True (B)

(A) True (B)

(A) True (B)

(A) True (B)

91. The sabotage of computers can result in criminal charges.

(A) True (B)

(A) True (B)