ACCT 215: Chapter 5 (Bootsma, Iowa
State University) Questions and
Answers.
Civil Law - Answer Defines the relationships between citizens or between citizens and their
government
Criminal Law - Answer Defines what a crime is
Criminal Law goals - Answer Deterrence; retribution; rehabilitation; incapacitation
Criminal Liability - Answer to be guilty of a crime, you generally need actus reus, mens rea
Actus Reus - Answer a criminal or guilty act
Mens Rea - Answer a criminal or guilty mind; unless its strict liability
Corporate Criminal Liability - Answer A corporation can be criminally liable under imputed
liability. A corporation is not a legal person and cannot have the necessary mens rea. Can be
fined or lose certain rights
Actual Authority - Answer Acting with the direct knowledge and permission of the
corporation
Apparent Authority - Answer a reasonable person would have believed that the employeee
was authorized by the company to act in a certain manner
State v. Casey's General Stores - Answer Cashier sells alcohol to a minor; claims it was the
cashier's wrongdoing; Casey's criminally liable = vicarious liabiliity; Supreme Court reverses on
appeal because the conduct was not "authorized, requested or tolerated"
Criminal Liability for Corporate Officers - Answer individual corporate leaders may also be
subject to criminal prosecution if an employee commits a crime for the benefit of the company
and the officer either knows and approves of the action or the oficers knows and does nothing
to stop the action
US v. Park - Answer Park delegated sanitation, public interest in purity of his food; Park had
authority and responsibility to ensure the sanitary conditional
, Types of Crimes - Answer Violent crimes; property crimes; public-order crimes; cybercrimes
Violent Crimes - Answer Homicide, rape, assault
Property Crimes - Answer Burglary, Larceny, Arson, Forgery
Public-Order Crime - Answer Intoxication, prostitution
Cybercrimes - Answer Hacking, Phishing
Felony - Answer Serious crime that is punishable by death or by imprisonment for more than
one year
Misdemeanor - Answer a lesser crime than a felony, punishable by a fine or incarceration in
jail for up to one year
Petty Offense - Answer in criminal law, the least serious kind of criminal offense, such as a
traffic or building code violation
Ponzi scheme - Answer investment fraud that involves the payment of purported returns to
existing investors from funds contributed by new investors
Embezzlement - Answer theft that occurs when a fiduciary is lawfully entrusted with personal
property of another and then fraudulently takes or uses that property for their own gain
Theft of Trade Secrets - Answer The intentional taking, copying, or using another's trade
secrets with the knowledge the owner of the trade secret will be injured by such action
Fraud - Answer the knowing misrepresentation of the truth or concealment of a material fact
to induce another to act to his or her detriment
Mail Fraud - Answer using postal services
Wire Fraud - Answer using electronic means of communication
Bankruptcy Fraud - Answer conceiling assets from bankruptcy proceedings
State University) Questions and
Answers.
Civil Law - Answer Defines the relationships between citizens or between citizens and their
government
Criminal Law - Answer Defines what a crime is
Criminal Law goals - Answer Deterrence; retribution; rehabilitation; incapacitation
Criminal Liability - Answer to be guilty of a crime, you generally need actus reus, mens rea
Actus Reus - Answer a criminal or guilty act
Mens Rea - Answer a criminal or guilty mind; unless its strict liability
Corporate Criminal Liability - Answer A corporation can be criminally liable under imputed
liability. A corporation is not a legal person and cannot have the necessary mens rea. Can be
fined or lose certain rights
Actual Authority - Answer Acting with the direct knowledge and permission of the
corporation
Apparent Authority - Answer a reasonable person would have believed that the employeee
was authorized by the company to act in a certain manner
State v. Casey's General Stores - Answer Cashier sells alcohol to a minor; claims it was the
cashier's wrongdoing; Casey's criminally liable = vicarious liabiliity; Supreme Court reverses on
appeal because the conduct was not "authorized, requested or tolerated"
Criminal Liability for Corporate Officers - Answer individual corporate leaders may also be
subject to criminal prosecution if an employee commits a crime for the benefit of the company
and the officer either knows and approves of the action or the oficers knows and does nothing
to stop the action
US v. Park - Answer Park delegated sanitation, public interest in purity of his food; Park had
authority and responsibility to ensure the sanitary conditional
, Types of Crimes - Answer Violent crimes; property crimes; public-order crimes; cybercrimes
Violent Crimes - Answer Homicide, rape, assault
Property Crimes - Answer Burglary, Larceny, Arson, Forgery
Public-Order Crime - Answer Intoxication, prostitution
Cybercrimes - Answer Hacking, Phishing
Felony - Answer Serious crime that is punishable by death or by imprisonment for more than
one year
Misdemeanor - Answer a lesser crime than a felony, punishable by a fine or incarceration in
jail for up to one year
Petty Offense - Answer in criminal law, the least serious kind of criminal offense, such as a
traffic or building code violation
Ponzi scheme - Answer investment fraud that involves the payment of purported returns to
existing investors from funds contributed by new investors
Embezzlement - Answer theft that occurs when a fiduciary is lawfully entrusted with personal
property of another and then fraudulently takes or uses that property for their own gain
Theft of Trade Secrets - Answer The intentional taking, copying, or using another's trade
secrets with the knowledge the owner of the trade secret will be injured by such action
Fraud - Answer the knowing misrepresentation of the truth or concealment of a material fact
to induce another to act to his or her detriment
Mail Fraud - Answer using postal services
Wire Fraud - Answer using electronic means of communication
Bankruptcy Fraud - Answer conceiling assets from bankruptcy proceedings
