NCJ Number
239975
Journal
American Criminal Law Review Volume: 49 Issue: 2 Dated: Spring 2012 Pages: 489-522
Date Published
2012
Length
34 pages
Annotation
In reviewing the principles that guide the law of corporate criminal liability, this article considers the three elements required to incur corporate criminal liability, the U.S. Sentencing Guidelines for sentencing organizations, and the effect of the U.S. Supreme Court's decision in United States v. Booker.
Abstract
Under the law of corporate criminal liability, a corporation has no physical existence and can be held vicariously criminally liable for the acts, omissions, or failures of employees acting as agents. Courts hold a corporation vicariously liable for the acts of its employee if the individual acted within the scope and nature of his/her employment; the individual acted, at least in part, to benefit the corporation; and the act and intent of the individual can be imputed to the corporation. Under Federal law, corporations are punished pursuant to the Organizational Sentencing guidelines. Punishment consists of a fine that is calculated post-conviction, based on either the victim's loss or the defendant's gain, multiplied by a factor specified in the U.S. Sentencing Guidelines. Although the Guidelines are advisory as decided by the Supreme Court in United States v. Booker, courts are still required to consult the guidelines, which operate under four general principles regarding organizations. First, the corporation must remedy any harm caused by its offense. Second, a corporation run primarily for criminal purposes should receive fines high enough to divest the business of all its assets. Third, businesses run other than for a criminal purpose should be fined according to the seriousness of their offenses and the culpability of the corporation. Fourth, corporations will be subject to probation if such a penalty will ensure compliance with sanctions or reduce the likelihood of future violations by the corporation. 233 notes