Martha Stewart Was Convicted of Obstruction of Justice After Lying

question 43

Multiple Choice

Martha Stewart was convicted of obstruction of justice after lying to the FBI during an investigation of her sale of ImClone Systems stock, whose value dramatically fell immediately after she sold it. Her conviction was unusual, as this sort of white collar crime is much more likely to be dealt with in civil, rather than criminal, court. How does the tendency to deal with white collar criminals in civil court bias our understanding of the demographics of crime?

• A) It causes us to underestimate the number of property crimes committed each year.
• B) It encourages us to equate cash register honesty with real honesty.
• C) It leads us to overestimate the relationship between poverty and crime.
• D) It creates a false relationship between gender and crime.
• E) It leads us to underestimate the extent of desistance.

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Definitions:

Consequential Damages

Damages that can be claimed and are intended to compensate a party for indirect losses as a result of not fulfilling a contractual obligation.

Nonconforming Goods

Products that fail to meet the quality, specifications, or performance standards outlined in a purchase agreement.

Lost Profits

Refers to the potential earnings a business was unable to realize due to wrongful actions by another party.

Insolvent

A financial state where an individual or entity cannot meet their debts as they become due.