Average Corp

question 27

Multiple Choice

Average Corp. was convicted of violating the federal mail fraud statute due to the activities of some of its employees, who had used the U.S. mail to perpetrate a fraudulent scheme designed to advance the otherwise legitimate business interests of Average. Average has appealed, arguing that its conviction should be set aside because the employees in question were relatively minor officials of the company and were acting without the knowledge or consent of any high-level corporate officer. In addition, Average argues that the involved employees were acting in violation of a longstanding and well-known Average policy against fraudulent schemes. Should Average's conviction be set aside?

• A) Yes, because Average could not have had the necessary mens rea.
• B) No, because the involved employees were acting within the scope of their employment and for the benefit of Average.
• C) No, because nothing in the facts indicates that Average should qualify for the protection of the due diligence defense recognized by most courts.
• D) Yes, because high-level corporate officers must be involved-and they were not involved here-in order for criminal intent to be imputed to the corporation.

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