Business Law

            QUIZ 2 – CHAPTER 8

Business LawI / Torres

Section I.  Complete the Sentence.  (Max. Points for Section = 10 Points).   This Section contains ten (10) questions that require Students to fill in the blank in order to complete the sentence correctly.  Each correct response in this section is worth one (1) point.  All work must be your own without assistance or input from anyone else.

1. Most crimes today are defined by legislative passage of a ___________ and not the common law.

2. Crimes, in general, require: (1) an act or omission and (2) _______________.

3. The requirement that criminal statutes be clear, not vague, and place citizens on reasonable notice of the conduct made criminal is a constitutional one that derives from the ____________ clause of the U.S. Constitution.

4. A criminal conspiracy typically requires an agreement between two or more persons to commit an unlawful act, or to use unlawful means to achieve an otherwise lawful result, and an ____________ done in furtherance of the conspiracy.

5. The types of criminal statutes that target business executives and financial representatives are commonly referred to as _______-collar crimes.

6. At common law, the crime of bribery, as the act of giving money, property, or any benefit to influence the judgment of a particular person in favor of the giver, was limited to bribes directed to ______________.

7. The crime of ______________ involves threatening someone with bad publicity with the intent to ruin or harm the personal or business reputation of another.

8. Shoplifting is typically a statutory expansion of the common law crime of ____________.

9. The federal crime of ___________ involves buying or selling a publicly-traded stock using confidential information entrusted to you during the course of your employment before it is made public.

10. The federal crime of _____________________ involves the knowing and willful participation in a financial transaction when the transaction is designed to conceal or disguise the source of the funds.

Section II.  Short Answer/Critical Thought Section.  (Max. Points for this Section = 10 Points).  This Section contains three questions that require Students to respond in a well-written short answer.  A good response must demonstrate the student’s full and accurate knowledge of the subject matter of the question posed. All responses must be your own without assistance or input from anyone else.

1. What must a federal Prosecutor prove in order to successfully prosecute someone for a criminal violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act. Be sure to identify and fully explain each required element and the standard of proof required in general. (5 Point Maximum)

1. What are the criminal penalties that may be assessed against a Defendant who is prosecuted successfully under the RICO Act. (3 Point Maximum)

1. In a successful civil RICO action, what civilremedies are available to the prevailing party? (2 Points)

Section III.  Practical Skills Section. (Max. Points for this Section = 30 Points).  This Section consists of three Questions, the first two with subparts, that require the demonstration of basic case research and case reading skills.  Perform the basic research requested by each of the questions and respond directly to the questions posed in their respective subparts.  All work must be your own without assistance or input from anyone else.

1. Using Google Scholar, look up the case of U.S. v. McGee using its citation “763 F.3d 304” and type its citation into the search box for “Case law”. Read the Opinion, paying careful attention to Sections I, IIA and III of the Opinion and respond to the questions below.

1. Identify the federal Act under which Defendant McGee is charged with “insider trading?” (2 Points)

1. Identify the two complementary theories of insider trading liability that are cited by the Third Circuit in this case and state which of these two theories was used to convict Defendant McGee under. (3 Points)

1. Explain why the Third Circuit Court of Appeals found that there was sufficient evidence to uphold the Defendant’s conviction for securities fraud/insider trading, notwithstanding Defendant McGee’s contention that he got his trading tips not from a professional or executive but from a fellow Alcoholics Anonymous member? (5 Points)

2. Using either Lexis or Westlaw, look up the following case entitled United States v. Cattle King Packing Co., 793 F.2d 292 (10th Cir. 1986) and answer the following questions after reading the federal appellate court opinion.

1. Explain what Defendants in this case were convicted of conspiring to do? (2 Points)

1. What was the standard used by the Court to determine whether reversible error occurred with regard to the jury’s verdict? (2 Points)

1. Did the 10th Circuit agree with the decision in U.S. v. Park case that a corporate officer can be found guilty of criminal acts with regard to the sale of adulterated food and imprisoned for same? (3 Points).

1. Explain why the Court convicted Defendant Stanko despite Defendant’s contention that he was out-of-state when the violations were alleged to have occurred. (3 Points).

3. Using either Lexis or Westlaw, look up the following case entitled Cedric Kushner Promotions, Ltd. v. Don King, 533 U.S. 158 (2001) and answer the following question after reading the U.S. Supreme Court Opinion. Briefly, the Petitioner, Cedric Kushner Promotions, Ltd., is a corporation that promotes boxing matches. Petitioner sued Don King, the president and sole shareholder/owner of Don King Productions, a corporation, claiming that King had conducted the boxing-related affairs of Don King Productions in part through a RICO “pattern,” i.e., through the alleged commission of at least two instances of fraud and other RICO predicate crimes. The lower courts dismissed the complaint because, in their view, RICO and its provisions apply only where a plaintiff shows the existence of two separate entities, a “person” and a distinct “enterprise,” the affairs of which that “person” improperly conducts.  In this case, “it is undisputed that King was an employee” (and sole owner) of the corporation Don King Productions and that King was also “acting within the scope of his authority.”  Did the Supreme Court find that Don King violated the RICO Act?   Explain why or why not. (10 Points)

Section IV.  Optional Extra Credit (Max. 10 Points) This optional section consists of one question and is worth a maximum of ten (10) extra credit points.

Identify and explain significant differences between the Criminal Law and the Civil Law that involve the parties, the burden of proof and the remedies sought.