Fundamentals of Business Law, 9E: Roger Leroy Miller

FUNDAMENTALS OF
BUSINESS LAW, 9E
ROGER LEROY MILLER
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CRIMINAL LAW
CHAPTER 6
LEARNING OBJECTIVES
1. What two elements normally must exist

before a person can be held liable for a
crime?
2. What are five broad categories of crimes?
What is white-collar crime?
3. What defenses can be raised to avoid
liability for criminal acts?
LEARNING OBJECTIVES (CONT’D)
4. What constitutional safeguards exist to

protect persons accused of crimes?
INTRODUCTION
• In this chapter:
• Brief summary of the major differences between
criminal and civil law
• Elements that must be present for criminal liability
to exist
• Examine various categories of crimes, the defenses
that can be raised to avoid liability for criminal
actions, and the rules of criminal procedure
CIVIL LAW AND CRIMINAL LAW
• Civil Law and Criminal Law

• Civil law spells out the duties that exist between persons or
between persons and their governments, excluding the duty
not to commit crimes.
• Criminal law has to do with crimes that are wrongs against
society proclaimed in statutes and punishable by society
through fines and/or imprisonment.
• Key Differences between Civil Law and

Criminal Law
• In a civil case, the plaintiff must prove the case by a
preponderance of the evidence
• In a criminal case, the state must prove its case
beyond a reasonable doubt
• Civil Liability for Criminal Acts

• A criminal act may give rise to both criminal
liability and tort liability.
EXHIBIT
CRIMINAL LIABILITY
Two elements normally must exist before a

person can be held liable for a crime:
1.Guilty act (actus reus)—In general, some
form of harmful act must be committed for a
crime to exist.
2.Intent—An intent to commit a crime, or a
wrongful mental state (mens rea), is generally
required for a crime to exist.
TYPES OF CRIMES
There are five broad categories of crimes:

•Violent crime
•Property crime
•Public order crime
•White-collar crime
•Organized crime
TYPES OF CRIMES
• Violent Crime
• Crimes against persons
• Those that cause others to suffer harm or death,
including murder, assault and battery, sexual assault
(rape), and robbery.
TYPES OF CRIMES
• Property Crime
• The most common form of crime.
• The offender’s goal is to obtain some economic
gain or to damage property.
• Property crimes include burglary, larceny, obtaining
goods by false pretenses, receiving stolen goods,
arson, and forgery.
TYPES OF CRIMES
• White-Collar Crime
• Illegal acts committed by a person or business
using nonviolent means to obtain a personal or
business advantage.
• White-collar crimes include embezzlement, mail
and wire fraud, bribery, bankruptcy fraud, theft of
trade secrets, and insider trading.
• Embezzlement – When a person who is
entrusted with another person’s funds or
property takes the property or funds for
themselves
• Typically carried out by an employee
PEOPLE V. SISUPHAN
• Sisuphan was an employee at Toyota

dealership, didn’t like coworker McClelland.
• McClelland accepted a large sum of cash from
a customer but when he went to put into the
safe (as they were supposed to) it got stuck in
the drop off slot
PEOPLE V. SISUPHAN
• McClelland tried to get the envelope free but

couldn’t so left to get his boss
• Sisuphan walked by and was able to get the
envelope unstuck, but instead of bringing it to
McClelland or boss, he pocketed it
• When cash turned up missing, boss said he
wouldn’t fire whoever returned it
PEOPLE V. SISUPHAN
• Sisuphan returned cash to boss but told boss

he had no intent on keeping it, just wanted to
get McClelland fired
• Boss fired Sisuphan and district attorney
charged him with embezzlement
• Trial court found him guilty and he appealed
BRIBERY
• Bribery – involves offering something of value

to someone in an attempt to influence that
person in a way that serves a private interest
• Usually a public official but doesn’t have to be
• Just act of offering bribe is a crime, accepting
bribe is a whole other crime
BANKRUPTCY FRAUD
• Claiming bankruptcy when not actually in

bankruptcy to avoid paying back creditors
• Also fraudulently transferring property to
someone else to avoid it being taken in a
bankruptcy proceeding
THEFT OF TRADE SECRETS
• Forms of intellectual property that are

extremely valuable to businesses
• Happens frequently when an employee leaves
a job and takes valuable information with them
INSIDER TRADING
• Taking information that is not known to the

public and using for ones benefit
• Taking information about the plans of a
publicly traded company and using that info to
buy or sell stocks
TYPES OF CRIMES
• Organized Crime
• A form of crime conducted by groups operating
illegitimately to satisfy the public’s demand for
illegal goods and services.
• Organized crime includes gambling, illegal
narcotics, money laundering, and racketeering.
TYPES OF CRIMES
• Classifications of Crimes
• Crimes may also be classified by their degree of
seriousness.
• Felonies are serious crimes punishable by death or
by imprisonment for more than one year.
• Misdemeanors are less serious crimes punishable
by fines or by confinement for up to one year.
DEFENSES TO CRIMINAL LIABILITY
• Defenses to criminal liability include

justifiable use of force, necessity, insanity,
mistake, duress, entrapment, and the statute of
limitations.
• In some cases defendants may be relieved of
criminal liability, at least in part, if they are
given immunity.
SELF DEFENSE
• The most well known defense is self defense. But you

can also defend one’s dwelling and/or property,
defend another person to prevent a crime
• Deadly force is likely to cause death or serious bodily
injury. Can be used if defender reasonably believes
necessary to protect himself.
• Non deadly is the force that is reasonably necessary
to prevent imminent crime
INSANITY
• Someone incapable of the state of mind

required to commit a crime
• Does not allow a person to avoid prison, sent
to mental institution instead
• Difficult to prove
• Can be required to face trial once insanity is
restored
DURESS
• When the wrongful threat of one person

induces another person to perform an act that
he or she wouldn’t have typically performed
• Can’t be used against murder
STATUTE OF LIMITATIONS
• All crimes but murder have statute of

limitations
• Means that a crime must be prosecuted or
charged within a certain amount of time
following the crime
CONSTITUTIONAL SAFEGUARDS
AND CRIMINAL PROCEDURES
• The U.S. Constitution provides specific
safeguards for those accused of crimes.
• These protections are set forth in the Fourth,
Fifth, Sixth, and Eighth Amendments.
• Fourth Amendment Protections
• Provides protection against unreasonable searches
and seizures and requires that probable cause exist
before issuing a search warrant or an arrest.
• Fifth Amendment Protections
• Requires due process of law, prohibits double
jeopardy, and protects against self-incrimination.
• Sixth and Eighth Amendment Protections
• Sixth Amendment—Guarantees a speedy trial, a trial
by jury, a public trial, the right to confront
witnesses, and the right to counsel.
• Eighth Amendment—Prohibits excessive bail and
fines, and cruel and unusual punishment.
• Two other procedural protections for criminal
defendants:
• The Exclusionary Rule—Prohibits the introduction of all
evidence obtained in violation of constitutional rights or any
evidence derived from the illegally obtained evidence.
• The Miranda Rule—A rule set forth by the Supreme Court
in Miranda v. Arizona holds that individuals who are
arrested must be informed of certain constitutional rights,
including their right to counsel.
CRIMINAL PROCESS
• The three phases of the criminal process—

arrest, indictment or information, and trial—
are procedures designed to safeguard the rights
of the individual against the state.
• See Exhibit for a summary of the procedural steps involved
in prosecuting a criminal case.
EXHIBIT
Exhibit
CRIMINAL PROCESS
• Sentencing Guidelines
• The federal government has established sentencing
laws or guidelines, which are no longer mandatory
but provide a range of penalties for each federal
crime.

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FUNDAMENTALS OF

1. What two elements normally must exist

4. What constitutional safeguards exist to

• Civil Law and Criminal Law

• Key Differences between Civil Law and

• Civil Liability for Criminal Acts

Two elements normally must exist before a

There are five broad categories of crimes:

• Sisuphan was an employee at Toyota

• McClelland tried to get the envelope free but

• Sisuphan returned cash to boss but told boss

• Bribery – involves offering something of value

• Claiming bankruptcy when not actually in

• Forms of intellectual property that are

• Taking information that is not known to the

• Defenses to criminal liability include

• The most well known defense is self defense. But you

• Someone incapable of the state of mind

• When the wrongful threat of one person

• All crimes but murder have statute of

• The three phases of the criminal process—

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