Business Law Today Standard Text and Summarized Cases (Miller Business Law Today Family) 10th edition test bank

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Business Law Today Standard Text and Summarized Cases (Miller Business Law Today Family) 10th edition test bank

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Chapter 6

Criminal Law and Cyber Crime

N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.

N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank,
= A question included in the previous edition of the Test Bank.

TRUE/FALSE QUESTIONS

1. A crime can be committed only against persons.

ANSWER: F PAGE: 156 TYPE: =
BUSPROG: Analytic LO: 6-1 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

2. Criminal law spells out the duties that exist between persons or between citizens and their governments.

ANSWER: F PAGE: 156 TYPE: N
BUSPROG: Analytic LO: 6-1 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

3. Public officials prosecute criminal defendants.

ANSWER: T PAGE: 156 TYPE: N
BUSPROG: Analytic LO: 6-1 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal


4. A criminal case must be proved beyond a reasonable doubt.

ANSWER: T PAGE: 156 TYPE: =
BUSPROG: Analytic LO: 6-1 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

5. One purpose of criminal sanctions is to deter others from committing similar crimes in the future.

ANSWER: T PAGE: 157 TYPE: N
BUSPROG: Reflective LO: 6-1 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

6. The crime of theft requires the taking of property, without regard to whether the perpetrator knew it belonged to another.

ANSWER: F PAGE: 158 TYPE: =
BUSPROG: Analytic LO: 6-1 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

7. Corporations, like persons, can be liable for crimes.

ANSWER: T PAGE: 159 TYPE: +
BUSPROG: Analytic LO: 6-1 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

8 Larceny relies on fear and force.

ANSWER: F PAGE: 161 TYPE: N
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Critical Thinking

9. Picking pockets is larceny.

ANSWER: T PAGE: 161 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

10. Counterfeiting is robbery.

ANSWER: F PAGE: 163 TYPE: +
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

11. Falsifying public records is forgery.

ANSWER: T PAGE: 163 TYPE: N
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

12. A bank employee stealing funds from a client is an example of embezzlement.

ANSWER: T PAGE: 164 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

13. Crimes occurring in a business context are popularly referred to as white-collar crime.

ANSWER: T PAGE: 164 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

14. Embezzlement can be committed only by physically taking property from the possession of another.

ANSWER: F PAGE: 164 TYPE: =
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

15. It is not a crime to defraud the public through the use of ads on television.

ANSWER: F PAGE: 165 TYPE: =
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

16. The crime of bribery occurs when the bribe is offered.

ANSWER: T PAGE: 165 TYPE: +
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

17. Bribing foreign officials to obtain favorable business contracts is not a crime.

ANSWER: F PAGE: 165 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

18. Divestiture of a business interest is a possible penalty under RICO.

ANSWER: T PAGE: 167 TYPE: =
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

19. In some states, misdemeanors are punishable by imprisonment for up to 10 years.

ANSWER: F PAGE: 167 TYPE: N
BUSPROG: Analytic LO: 6-2 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

20. Felonies are punishable by imprisonment for more than a year or death.

ANSWER: T PAGE: 167 TYPE: N
BUSPROG: Analytic LO: 6-2 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

21. Someone suffering from a mental illness may be incapable of the state of mind to commit a crime.

ANSWER: T PAGE: 169 TYPE: N
BUSPROG: Analytic LO: 6-3 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

22. Ordinarily, ignorance of the law is a valid defense to criminal liability.

ANSWER: F PAGE: 169 TYPE: N
BUSPROG: Analytic LO: 6-3 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

23. Most crimes must be prosecuted within a certain number of years after the crimes occur.

ANSWER: T PAGE: 170 TYPE: N
BUSPROG: Analytic LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal


24. There is at least one circumstance in which a person cannot refuse to testify on Fifth Amendment grounds.

ANSWER: T PAGE: 170 TYPE: N
BUSPROG: Analytic LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

25. Constitutional safeguards protect the rights of individuals against federal government actions.

ANSWER: T PAGE: 170 TYPE: N
BUSPROG: Reflective LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

26. Under the Fourth Amendment, a general search warrant and a general search through a persons belongings are permitted.

ANSWER: F PAGE: 172 TYPE: =
BUSPROG: Analytic LO: 6-4 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

27. A suspect cannot be tried twice in the same court for the same crime.

ANSWER: T PAGE: 173 TYPE: =
BUSPROG: Analytic LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

28. Under the exclusionary rule, illegally obtained evidence may not be included in any criminal prosecution.

ANSWER: T PAGE: 174 TYPE: +
BUSPROG: Analytic LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

29. The purpose of the exclusionary rule is to deter police from misconduct.

ANSWER: T PAGE: 174 TYPE: N
BUSPROG: Analytic LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal


30. Under the exclusionary rule, all evidence must be included in a criminal prosecution.

ANSWER: F PAGE: 174 TYPE: =
BUSPROG: Analytic LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

31. Individuals who are arrested must be informed of certain constitutional rights.

ANSWER: T PAGE: 175 TYPE: N
BUSPROG: Analytic LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

32. All persons who are arrested have the constitutional right to remain silent.

ANSWER: T PAGE: 175 TYPE: N
BUSPROG: Analytic LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

33. Any criminal activity occurring via a computer in the virtual community of the Internet is a cyber crime.

ANSWER: T PAGE: 178 TYPE: N
BUSPROG: Reflective LO: 6-5 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

34. Identity theft occurs when a wrongdoer steals anothers form of identification and uses it to access the victims financial resources.

ANSWER: T PAGE: 180 TYPE: +
BUSPROG: Analytic LO: 6-5 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

35. A hacker is someone who uses one computer to break into another.

ANSWER: T PAGE: 182 TYPE: =
BUSPROG: Analytic LO: 6-5 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal


MULTIPLE-CHOICE QUESTIONS

1. Mike is arrested at a warehouse in North Industrial Park and is charged with the crime of theft. Mike will be prosecuted by

a. the owner of the warehouse.
b. the owner of the property that Mike is charged with stealing.
c. a public official.
d. any third party unrelated to Mike, the property, or the crime.

ANSWER: C PAGE: 156 TYPE: N
BUSPROG: Reflective LO: 6-1 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal

2. Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know

a. Milo.
b. Nadine.
c. that the marimba is stolen and Ludwig must intend to keep it.
d. what a marimba is.

ANSWER: C PAGE: 158 TYPE: =
BUSPROG: Reflective LO: 6-1 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal

3. Mary enters a gas station and points a gun at the clerk. She then forces the clerk to open the cash register and give her all the money. Mary can be charged with

a. robbery.
b. forgery.
c. larceny.
d. embezzlement.

ANSWER: A PAGE: 161 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


4. William goes to Saddle Up Stables in the middle of the night when no one is around and takes five saddles. Williams crime is

a. forgery.
b. larceny.
c. robbery.
d. embezzlement.

ANSWER: B PAGE: 161 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

5. Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed

a. burglary.
b. forgery.
c. larceny.
d. no crime.

ANSWER: C PAGE: 161 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal

6. Scott, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is

a. embezzlement.
b. larceny.
c. money laundering.
d. no crime.

ANSWER: B PAGE: 161 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


7. Plato works for Quirky Squirters, Inc. During work hours, Plato steals time, space, and data on his employers computer system to start up his own business, Rowdy Drenchers. This is

a. burglary.
b. robbery.
c. larceny.
d. no crime.

ANSWER: C PAGE: 161 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

8. Susan is unhappy with the way her mother has made out her will. Susan has a lawyer draft a new will and then signs her mothers name to it without her mothers consent. Susan has committed

a. larceny.
b. no crime.
c. robbery.
d. forgery.

ANSWER: D PAGE: 163 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

9. Leah gains access to government records and alters certain dates and amounts in her favor. This is

a. embezzlement.
b. forgery.
c. larceny.
d. no crime.

ANSWER: B PAGE: 163 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


10. Ivan signs Jebs name, without his authorization, to the back of a check.
This is

a. no crime.
b. forgery.
c. larceny.
d. robbery.

ANSWER: B PAGE: 164 TYPE: +
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

11. Jake is charged with embezzlement. Embezzlement may be committed without

a. a criminal act.
b. a criminal intent.
c. taking property from its owner.
d. the use of force or fear.

ANSWER: D PAGE: 164 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

12. Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires

a. fraudulently appropriating anothers property.
b. obtaining lawful possession of property.
c. physically taking property from its owner.
d. the use of force or fear.

ANSWER: A PAGE: 164 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


13. After Edie solicits clients to invest in a nonexistent business, she is charged with mail fraud. This requires, among other things,

a. claiming that an item is in the mail when it is not.
b. deceiving postal authorities as to the content of an item of mail.
c. depositing items in the postal system without proper postage.
d. mailing or causing someone else to mail a writing.

ANSWER: D PAGE: 165 TYPE: =
BUSPROG: Analytic LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

14. Robert uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by

a. imprisonment for not more than one year.
b. imprisonment for up to thirty years and fines of up to $1 million.
c. fines for not more than $50,000.
d. death.

ANSWER: B PAGE: 165 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

15. Mona offers Ned, a building inspector, $5,000 to overlook the violations in her new warehouse. Ned accepts the cash and overlooks the violations. Mona is charged with the crime of bribery. The crime occurred when

a. Mona decided to offer the bribe.
b. Mona offered the bribe.
c. Ned accepted the bribe.
d. Ned overlooked the violations.

ANSWER: B PAGE: 165 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


16. Dirk, an employee of Ergonomic Elevators, Inc., pays Ferbie, an employee
of Ergonomics competitor G-Force Risers Company, for a secret G-Force
pricing schedule. This is

a. an effective marketing strategy.
b. commercial bribery.
c. creative legal bookkeeping.
d. money laundering.

ANSWER: B PAGE: 165 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

17. Bruno is a businessperson with investments in legal and illegal operations. Bruno may be subject to penalties under RICO

a. for making an unprofitable, but legal, investment.
b. for the commission of any business fraud.
c. only in a case involving a racket.
d. only in a case involving organized crime.

ANSWER: B PAGE: 167 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

18. Jared is arrested and found guilty of a misdemeanor. His punishment will not include

a. imprisonment for six months.
b. a fine of $100.
c. death.
d. imprisonment for six months and a fine of $500.

ANSWER: C PAGE: 167 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal


19. Megan is charged with jaywalking, which is classified as

a. a misdemeanor.
b. a felony.
c. a petty offense.
d. no crime.

ANSWER: C PAGE: 167 TYPE: N
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

20. Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for

a. any period of time.
b. more than one year.
c. more than six months.
d. more than ten days.

ANSWER: B PAGE: 167 TYPE: =
BUSPROG: Reflective LO: 6-2 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

21. Vance points a gun at Workman and threatens to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense

a. nothing.
b. duress.
c. entrapment.
d. self-defense.

ANSWER: D PAGE: 168 TYPE: =
BUSPROG: Reflective LO: 6-3 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal


22. Davis points a gun at Eton, threatening to shoot him if he does not steal
from his employer, Freddys Convenience Store, and give the stolen funds to
Davis. Charged with theft, Eton can successfully claim, as a defense

a. nothing.
b. duress.
c. entrapment.
d. self-defense.

ANSWER: B PAGE: 169 TYPE: N
BUSPROG: Reflective LO: 6-3 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal

23. Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked substantial capacity to

a. appreciate the wrongfulness of his conduct only.
b. appreciate the wrongfulness of his conduct and obey the law.
c. appreciate the wrongfulness of his conduct or obey the law.
d. obey the law only.

ANSWER: C PAGE: 169 TYPE: =
BUSPROG: Reflective LO: 6-3 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

24. Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and

a. can be prosecuted only for a crime about which she agreed to testify.
b. cannot be prosecuted for any crime.
c. cannot refuse to testify on Fifth Amendment grounds.
d. can refuse to testify on Fifth Amendment grounds.

ANSWER: C PAGE: 170 TYPE: =
BUSPROG: Reflective LO: 6-4 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal


25. Maya, a police officer, wants to search the offices of Niles Corporation.
Maya asks Judge Orion to issue a warrant. Under the Fourth Amendment,
no warrants for a search or an arrest can be issued without

a. double jeopardy.
b. probable cause.
c. reasonable doubt.
d. immunity.

ANSWER: B PAGE: 172 TYPE: N
BUSPROG: Reflective LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

26. Justin is charged with a crime. He insists that he should have an opportunity to object to the charges before a fair, neutral decision maker. No one can be deprived of life, liberty, or property without due process of law under the

a. Second Amendment.
b. Fourth Amendment.
c. Fifth Amendment.
d. Eighth Amendment.

ANSWER: C PAGE: 173 TYPE: N
BUSPROG: Reflective LO: 6-4 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal

27. Alan, the president of Bayside Investments, Inc., and Colin, Baysides accountant, are charged with a crime, after the police search Baysides offices. Under the exclusionary rule

a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly decid-ing the case may be excluded from the jury.

ANSWER: C PAGE: 174 TYPE: =
BUSPROG: Reflective LO: 6-4 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal


28. Jackson is accused of a crime. Jackson can refuse to provide information
about his allegedly criminal activities

a. if he suspects the information will be used to prosecute him.
b. if the police do not promise to keep the information confidential.
c. if the information is fruit of the poisonous tree.
d. under no circumstances.

ANSWER: A PAGE: 174 TYPE: N
BUSPROG: Reflective LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

29. Herb, a computer programmer for Inventory Control Corporation, is arrested in his employers parking lot on suspicion of larceny. Herb must be informed of his right to

a. a trial by jury.
b. punishment.
c. question witnesses.
d. remain silent.

ANSWER: D PAGE: 175 TYPE: =
BUSPROG: Reflective LO: 6-4 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

30. Gina sells Bulk Up steroids over the Internet. She is arrested and charged with the sale of a controlled substance. This is cyber crime, which is

a. a new category of crime that is not related to older types of crime.
b. a crime that occurs the virtual community of the Internet.
c. a crime that is less real than the same crime in the physical world.
d. no crime.

ANSWER: B PAGE: 179 TYPE: +
BUSPROG: Reflective LO: 6-5 BLOOMS: Knowledge
DIF: Easy AICPA: BB-Legal


31. Travis sends Suri what purports to be a link to an e-birthday card, but
when she clicks on the link, software is downloaded to her computer to
record her keystrokes and send the data to Travis. He uses the data to
obtain her personal information and access her financial resources. This is

a. identity theft.
b. cyberterrorism.
c. entrapment.
d. no crime.

ANSWER: A PAGE: 180 TYPE: =
BUSPROG: Reflective LO: 6-5 BLOOMS: Comprehension
DIF: Moderate AICPA: BB-Legal

32. Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is

a. hacking.
b. identity theft.
c. cyberterrorism.
d. bribery.

ANSWER: B PAGE: 180 TYPE: =
BUSPROG: Reflective LO: 6-5 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

33. Farouk uses his computer to break into Global Financial Centers computer. Farouk is a

a. hacker.
b. phisher.
c. worm.
d. virus.

ANSWER: A PAGE: 182 TYPE: +
BUSPROG: Reflective LO: 6-5 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal


34. Via the Internet, Rocky sabotages the computer system of Quik Chikn
Company, a food manufacturer, to alter the levels of ingredients in the
companys products so that consumers of the food become ill. Rocky is a

a. cyberterrorist.
b. botnet.
c. virus.
d. worm.

ANSWER: A PAGE: 183 TYPE: =
BUSPROG: Reflective LO: 6-5 BLOOMS: Comprehension
DIF: Easy AICPA: BB-Legal

35. Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of

a. jurisdiction.
b. maximum contacts.
c. the immunity of Internet service providers.
d. encryption.

ANSWER: A PAGE: 183 TYPE: =
BUSPROG: Reflective LO: 6-5 BLOOMS: Application
DIF: Moderate AICPA: BB-Legal

ESSAY QUESTIONS

1. Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsanitary conditions in the companys warehouse caused by Vic, a Tasty Foods employee. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection finds that the warehouse is still unsanitary. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable?

ANSWER: The answer to both questions is yes. A corporation may be held liable for the crime of its employee if (1) the criminal act is within the scope of the employment and the purpose of the statute defining the act as a crime is to impose liability on the corporation, (2) the crime consists of a failure to perform a specific duty imposed on corporations by law, and (3) the crime was authorized by one of the corporations high managerial agents. Here, all of these elements exist. The unsanitary conditions in the warehouse are within the employees scope of employment, the crime consists of a failure to keep the warehouse clean, and the crime was authorized by a company vice president. As for the presidents personal liability, if she has the authority and the responsibility to deal with the situation, she can be held personally liable. A corporate officer must have the authority and the responsibility to deal with such situations. Personal liability is imposed in these circumstances, not because the corporate officer knew about the crime or intended it, but because the officer is in a re-sponsible relationship to the corporation and has the power to prevent the crime. Under this responsible corporate officer doctrine, a corporate officer can be held liable for an employees violations of the law. This li-ability may be imposed regardless of whether the officer participated in, directed, or knew about the violation.

PAGES: 159160 TYPE: =
BUSPROG: Reflective LO: 6-1 BLOOMS: Analysis
DIF: Challenging AICPA: BB-Decision Modeling

2. An unknown individual launches a series of attacks against the Web sites of Prime Sales Corporation. The attacks significantly slow the sites, leading to $100 million in damage in terms of lost work time, lost revenue, site repair costs, and other expenses. The attacker does not intend to profit from the onslaught and in fact does not realize any financial benefit from the effects. How is this attack most likely orchestrated? Who is most likely to engage in this actthat is, whose habits and limitations are clearly suited to such conductand why?

ANSWER: The perpetrator in this question likely committed the attack through hackingusing one computer to break into another. The hacker may have appropriated a large number of computers without their owners knowledge. Each computer might have become a bot, together constituting a botnet, through which the hacker could secretly install programs to forward transmissions to even more computers. The hacker might then have installed other malware, or other programs harmful to computers. This might have consisted of a worm, which could reproduce and transfer itself to other computers, or a virus, which could reproduce itself but could not transfer without being attached to an infected file. These programs might have been uploaded to Web sites based anywhere in the world.

PAGE: 182 TYPE: =
BUSPROG: Reflective LO: 6-5 BLOOMS: Analysis
DIF: Challenging AICPA: BB-Decision Modeling

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