Criminal Law and Business Organization

White-collar crimes

Illegal offenses that occur in a business or professional setting, typically non-violent and committed for personal financial gain.

Fraud

Comprises 63% of white-collar crimes involving deception for financial benefit.

Embezzlement

The misappropriation of funds placed in one's trust or belonging to one's employer.

Money laundering

The process of concealing the origins of illegally obtained money.

Federal crimes

Violations of federal laws established by the federal government.

State crimes

Crimes that violate state laws.

Felonies

Serious crimes punishable by more than one year in prison and/or fines.

Misdemeanors

Less serious crimes punishable by less than one year in jail and/or fines.

Intent in criminal law

Many laws define criminal intent using terms like willfully or knowingly.

Willfully

Acting voluntarily and purposefully with specific intent to commit a crime.

Knowingly

Acting voluntarily and intentionally, not due to mistake or accident.

Reckless conduct

Committing a crime without intent to cause specific harm (e.g., reckless driving).

Guilty plea

Acceptance of responsibility for a criminal charge.

Not guilty plea

A plea that triggers the prosecution's case and trial.

Nolo contendere

No contest plea; accepts punishment without admitting guilt.

Not guilty by reason of insanity

Plea claiming the defendant was not in a sound state of mind during the crime.

Alford Plea

A plea where the defendant maintains innocence but acknowledges sufficient evidence for conviction.

Grand jury

A group that decides whether there is enough evidence for a case to go to trial.

4th Amendment

Protects against unreasonable searches and seizures, requiring a warrant based on probable cause.

Exigent circumstances

Situations requiring police action without a warrant due to emergency conditions.

Kentucky v King

A Supreme Court case concerning police searches under exigent circumstances.

Riley v California

A Supreme Court case stating that cell phone searches require a warrant.

5th Amendment

Protects against self-incrimination in criminal cases.

Miranda rights

Rights that must be read to an arrested individual, protecting against self-incrimination.

6th Amendment

Ensures rights to a speedy public trial, jury, knowledge of charges, confrontation of witnesses, and legal counsel.

8th Amendment

Prohibits excessive bail, fines, and cruel or unusual punishment.

Excessive fines

Fines that are arbitrary or disproportionate to the offense.

Cruel and unusual punishment

Punishments that violate society's standards of decency.

Fraud definition

Knowingly and willfully falsifying material facts or making fraudulent statements.

Mail and wire fraud

Illegally using mail or electronic communication to carry out a scheme to defraud.

Skilling v United States

A Supreme Court case addressing pre-trial publicity affecting fairness.

Corporation

An artificial entity created under state law with legal rights distinct from its owners.

Sole proprietorship

A business owned by a single person with no legal distinction from the owner.

Partnership

A business formed by two or more individuals sharing profits and losses.

Limited liability company (LLC)

A business structure that combines the characteristics of corporations and partnerships.

Limited partners

Partners in a limited partnership with reduced legal liability.

Piercing the corporate veil

Legal concept allowing creditors to hold shareholders personally liable in certain circumstances.

Agent of the organization

An individual authorized to act on behalf of the business.

Principal

The party in an agency relationship who delegates authority to the agent.

Vicarious liability

Legal principle holding an employer responsible for the acts of employees performed within the course of employment.

Actual authority

Express permission or specific instructions granted to an agent.

Implied authority

Authority inferred from the actions or position of the agent.

Apparent authority

The appearance of authority that allows a third party to assume an agent is acting validly on behalf of the principal.

Tort liability

Legal responsibility arising from civil wrongs or injuries caused by a tortfeasor.

Niche market

A specific, defined segment of the market that is addressed by a specific kind of product or service.

Liability exposure

Potential legal financial responsibilities arising from operations or actions taken by a business.

Bylaws

Rules governing the internal management of an organization.

Shareholders

Individuals or entities that own shares in a corporation.

Board of directors

Group elected by shareholders to oversee the corporation's activities.

Double taxation

Taxation of corporate profits and again on dividends distributed to shareholders.

Joint and several liability

Legal concept where each partner is liable for the entire debt of the partnership.

Derivative suit

A lawsuit brought by a shareholder against a corporation, typically for breach of fiduciary duty.

Hybrid business organization

Businesses combining elements of both corporations and partnerships, like LLCs.

Business license

A permit issued by a government to operate a certain business.

DBA (Doing Business As)

Registration of a business name that is different from the owner's personal name.

Continuity of existence

The ability of a business to continue beyond the involvement of its original owners.

Control structure

The framework establishing how decisions are made within a business.

Professional corporations

Corporations formed by licensed professionals (e.g., doctors, lawyers).

Non-profit organization

An organization not driven by profit but by a specific mission or purpose.

Closely held corporation

A corporation whose shares are held by a small number of shareholders.

Business negligence

Failure to take proper care in doing something that results in damage or injury to another.

Material fact

Information significant enough to influence the decision-making process in a transaction.

Subpoena

A legal document ordering an individual to appear in court or produce evidence.

Corporate governance

The system by which companies are directed and controlled.

Nonprofit corporation

An organization that is tax-exempt and serves a public or community purpose.

Limited liability partnership (LLP)

A partnership where some owners have limited personal liability for debts.

Employment agency

A business that matches employers with employees.

Tax liability

The total amount of taxes owed by an individual or business.

Merger

The combination of two or more entities into one.

Acquisition

The act of obtaining control of another business by purchase or through other means.

Stakeholders

All parties interested or affected by a business's operations.

Fiduciary duty

An obligation of trust and confidence one party owes to another.

Liability insurance

Coverage that protects businesses against claims resulting from injuries and damage to people or property.

Zoning laws

Regulations governing the use of land and structures built upon it.

Intellectual property

Creations of the mind that can be legally protected, including patents and copyrights.

Licensing agreement

A contract where one party grants permission to another to use intellectual property.

Shareholder rights

Entitlements that shareholders have related to the management and operations of a corporation.

Commercial paper

An unsecured, short-term debt instrument issued by a corporation.

Investment risk

The potential for loss or decreased returns on an investment.

Franchise

A business model in which a franchisee pays a franchisor for the right to operate a business under their brand.

Market share

The percentage of an industry's sales that a particular company controls.

Initial public offering (IPO)

The first time a company offers its shares to the public.