Business Law Chapters 6-8 – Flashcards
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Tort
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a violation of a duty imposed by the civil law
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Intentional Tort
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Harm caused by a deliberate action
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Defamation
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Concerns false statements that harm someone's reputation
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Libel
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Written defamation
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Slander
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Oral defamation
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Elements in a defamation case
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Defamatory statement (likely to harm another person's reputation) Statement must be FALSE Communicated to at least one other person other than plaintiff Plaintiff must show some INJURY
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5 Categories of Intentional Torts
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Defamation False Imprisonment Intentional Infliction of Emotional Distress Battery and Assault Trespass, Conversion, and Fraud
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What are two valid defenses to a claim of defamation?
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Opinion Public Personalities
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Slander per se
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statements that are so harsh and potentially damaging that the plaintiff is assumed to be damaged and does not have to prove injury
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How does opinion relate to the allegation of defamation?
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Opinions generally cannot be proven true or false and since plaintiffs must demonstrate a "false" statement, they usually don't amount to defamation
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Who classifies as public figures?
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Government officials, actors, athletes
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Do public figures get more or less protection from defamation?
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LESS
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Actual malice
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the defendant knew the statement was false or acted with reckless disregard of the truth
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Communications Decency Act (CDA)
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provides some immunity to online defamation suits, since it is impossible for service providers to screen each of their million postings for possible problems
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False Imprisonment
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the intentional restraint of another person without reasonable cause and without consent Ex: chaining a customer to a display counter for 3 hours in a retail store because he was suspected of shoplifting
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Intentional Infliction of Emotional Distress
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an intentional tort in which the harm results from extreme and outrageous conduct that causes serious emotional harm
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Battery
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intentional touching of another person in a way that is harmful or offensive
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Assault
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an act that makes a person reasonably fear an imminent battery
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Trespass
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intentionally entering land that belongs to someone else or remaining on the land after being asked to leave
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Fraud
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injuring another person by deliberate deception
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Conversion
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taking or using someone's personal property without consent Ex: Sammy sails away on Jib's boat and keeps it all summer
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Compensatory damages
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an amount of money that the court believes will restore him to the position he was in before the defendant's conduct caused injury
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What is included in compensatory damages? (examples)
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lost wages, past/future medical expenses, pain and suffering
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Single Recovery Rule
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requires a court to settle the matter once and for all by awarding a lump sum for past AND future expenses (if there will be any)
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Punitive Damages
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damages that are intended to punish the defendant for conduct that is extreme and outrageous
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What must the court consider before awarding punitive damages?
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1. the reprehensibility of the defendant's conduct 2. the ratio between the harm suffered and the award 3. the difference between the punitive award and any civil penalties used in similar cases
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Tortious Interference with Business Relations
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an intentional tort in which the defendant improperly induced a third party to breach a contract with the plaintiff
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What are the elements of tortious interference with a contract?
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1. There was a contract 2. The defendant knew of the contract 3. The defendant improperly INDUCED the third party to breach the contract or made performance of the contract impossible 4. There was injury to the plaintiff
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Justification
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a defense to tortious interference with contract claim
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Tortuous interference with the perspective advantage
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malicious interference with a developing economic relationship
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Intrusion
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a tort in which a reasonable person would find the invasion of her private life offensive Ex: peeping through someone's windows
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Commercial exploitation
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the right to commercial exploitation prohibits the use of someone's likeness or voice for commercial purposes without permission Ex: Ford Motor Co. hired singer to imitate Bette Midler's version of a popular song
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Lanham Act
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provides broad protection against false statements intended to hurt another business
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What must the plaintiff prove to win a Lanham Act case?
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1. That the defendant made false or misleading fact statements about the plaintiff's business 2. That the defendants used the statements in commercial advertising or promotion 3. That statements created the likelihood of harm to the plaintiff
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Negligence
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UNINTENTIONAL tort; concerns harm that arises by accident
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What must the plaintiff prove to win a negligence case?
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1. Duty of due care 2. Breach of duty 3. Factual Cause 4. Proximate Cause 5. Damages
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Duty of due care
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- defendant had a legal responsibility to the plaintiff - each of us has a duty to behave as a reasonable person would under the circumstances
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What is the significance of the Hernandez v. Arizona Board of Regents case?
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it decided that anyone serving alcohol to a minor is liable for injuries that result to a third part, and most states follow this to a degree
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Dram act
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a law that makes businesses liable for serving drinks to intoxicated customers who later cause harm - applies to liquor stores, bars, and restaurants that have alcohol
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Lowest Liability of Landowners?
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Trespassing Adults - landowners are only liable if they intentionally injure the trespasser
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Mid-level liability of landowners?
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Trespassing Children - liable if there is some manmade thing on the land that may be reasonable expected to attract children
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Higher liability of landowners?
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Licensees - liable only for injuries caused by hidden dangers or dangers the landowner knows about but does not provide warning
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Highest liability for landowners?
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Invitees - liable even if you had no idea that something on your property posed a hidden danger
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Landowner's Duty to Social Guests?
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social guests are classified as licensees, so landowners have a higher liability for them
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What special duty does a professional have?
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Professionals must act as a reasonable person in their profession while on the job
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What is the employer's special duty regarding hiring and retention of employees?
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Companies can be liable if they know or should know an employee's criminal history and if they are negligent for acting upon an employee who is threatening dangerous things
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Breach of duty
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if the defendant did not meet the legal obligations/duty of care for the plaintiff
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Negligence per se
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when a legislature sets a minimum standard of care for a particular activity, in order to protect a certain group of people, and a violation of the statute injures a member of that group Ex: sniffing glue example
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Causation
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plaintiff must show that the defendant's breach of duty CAUSED the plaintiff's harm
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Factual Cause
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if the defendant's breach led to the ultimate harm
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Proximate Cause
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for the defendant to be liable, the type of harm must have been reasonably foreseeable
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Res ipsa loquitur
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the facts IMPLY that the defendant's negligence caused the accident
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When does res ipsa loquitur apply?
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1. When the defendant had exclusive control of the thing that caused the harm 2. When the harm normally would not have occurred without negligence 3. When the plaintiff had no role in causing the harm
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Damages
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The plaintiff must persuade the court that he has suffered harm that is genuine, not speculative
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Contributory negligence
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if the plaintiff is even slightly negligent, she recovers nothing
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Comparative negligence
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a plaintiff may generally recover even if she is partially responsible
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Assumption of the Risk
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a person who voluntarily enters a situation that has an obvious danger cannot complain if she is injured
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Strict liability
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a branch of tort law that imposes a much higher level of liability, when harm results from ultra-hazardous acts or defective products
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Ultra-hazardous activity
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using harmful chemicals, operating explosives, keeping wild animals, bringing dangerous substances onto property, and similar activities where the danger to the general public is especially great
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What is the rule about defendant liability for injuries resulting from ultra-hazardous activities?
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A defendant engaging in an ultra-hazardous activity is almost always liable for any harm that results - Plaintiff does not have to prove duty or breach or foreseeable harm (proximate cause)
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Criminal procedure
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the process by which criminals are accused, tried, and sentenced
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What is the purpose of criminal law?
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to prohibit and punish conduct that threatens public safety and welfare
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Restitution
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a court order that a guilty defendant reimburse the victim for the harm suffered
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Beyond a reasonable doubt
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the very high burden of proof in a criminal trial, demanding much more certainty than required in a civil trial
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When does a criminal defendant have a right to a jury trial?
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A criminal defendant has a right to a trial by jury for any charge that could result in a sentence of 6 months or longer
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Felony
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a serious crime for which a defendant can be sentenced to 1 year or more in prison
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Misdemeanor
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a less serious crime, often punishable by less than a year in a county jail
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How are crimes "created"?
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by statute; prosecution must demonstrate to the court that the defendant's conduct is indeed outlawed by a statute
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The Fifth and Fourteenth Amendments require that language of criminal statutes be clear and definite enough that....
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1. ordinary people can understand what conduct is prohibited 2. police are discouraged from arbitrary and discriminatory enforcement
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A defendant is not guilty if she acted under ________
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duress (if she was forced to commit the crime)
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Entrapment
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when the government induces the defendant to break the law - then the prosecution must prove beyond a reasonable doubt that the defendant was predisposed to commit the crime
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Fourth Amendment of the Constitution
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prohibits government from making illegal searches and seizures of individuals, corporations, partnerships, and other organizations
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What must a warrant specify with reasonable certainty?
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the place to be searched and the items to be seized
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Probable Cause
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it is likely that evidence of crime will be found in the place to be searched
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What are the 7 circumstances under which the police may search without a warrant?
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1. Plain View 2. Stop and Frisk 3. Emergencies 4. Automobiles 5. Lawful Arrest 6. Consent 7. No Expectation of Privacy
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Exclusionary rule
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evidence obtained illegally may not be used at trial - if police force a confession, this rule prohibits prosecution from using it or any information they obtain as a result of what the defendant has said
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What are the 2 exceptions to the exclusionary rule?
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1. Inevitable Discovery - evidence would have been inevitably discovered without illegal search 2. Good Faith Exception
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Due process
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requires fundamental fairness at all stages of a case
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Fifth Amendment of the Constitution
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bars government from forcing any person to provide evidence against himself
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Miranda Rights
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1. Police cannot legally force suspect to provide evidence against himself 2. Police must remind suspects of their rights
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What are the 6 stages in the prosecution process after a defendant has been arrested?
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1. Indictment 2. Arraignment 3. Discovery 4. Plea Bargaining 5. Trial and Appeal 6. Punishment
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Double Jeopardy
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a criminal defendant may be prosecuted only once for a particular criminal offense
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Eighth Amendment of the Constitution
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prohibits cruel and unusual punishment
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Larceny
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the trespassery taking or personal property with the intent to steal it
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Fraud
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deception for the purpose of obtaining money or property
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Wire and Mail Fraud
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the use of interstate mail, telegram, telephone, radio, or television to obtain property by deceit
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Theft of Honest Services
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prohibits public and private employees from taking bribes or kickbacks
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Swoop and squat insurance fraud scheme
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when people work together hoping to cause an accident with someone else
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Arson
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the malicious use of fire or explosives to damage or destroy real estate or personal property
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Embezzlement
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the fraudulent conversion of property already in the defendant's possession
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Under what circumstances can a company be held liable for the criminal act of an employee?
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The company is liable if an agent commits a criminal act within the scope of his employment and with the intent to benefit the corporation
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RICO
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a powerful Federal statute originally aimed at organized crime, now used in many criminal prosecutions and civil lawsuits
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What does RICO prohibit?
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using 2 or more racketeering acts to accomplish... 1. investing in or acquiring legitimate business with criminal money 2. maintaining or acquiring businesses through criminal activity 3. operating businesses through criminal activity
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Money laundering
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using the proceeds of criminal acts either to promote crime or conceal the source of the money
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If a corporation commits a crime, how is it punished?
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usually with a fine
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Compliance program
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a plan to prevent and detect criminal conduct at all levels of the company