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Research Task #3 The United States of America v. Martha Stewart and Peter Bacanovic, 433 F.3d 273 (2d Cir. 2006)

Research Task #3: The United States of America v. Martha Stewart and Peter Bacanovic, 433 F.3d 273 (2d Cir. 2006)

Question 1: Defendants

Martha Stewart and Peter Bacanovic

Question 2: Type of jurisdiction

Federal question – Federal court jurisdiction hear cases in which the United States is a party, and in this case, the United States was the plaintiff.

Question 3:

A misdemeanor and infraction are less serious than a felony. The case is a felony as it involves several charges – the jury found Stewart and Bacanovic guilty of conspiracy, concealing material information from and making false statements to government officials, and obstructing an agency proceeding; the jury also found Bacanovic guilty of perjury. Conspiracy is a felony because it attracts a jail sentence of up to five years I federal prison plus monetary fines.

Question 4:

Explain the actus reus and mens rea required by the law.

In the concept of law, actus reus means is he guilty act while in mens rea, is the guilty mind.

How the defendant’s actions met actus reus and mens rea

The defendants were both found guilty of making false statements, which means that they violated Title 18 U.S. Code § 1001 which makes it a crime to willingly and willfully make any materially false or fraudulent statements or representation in the United States jurisdiction. The defendants possessed both guilty mind and guilty act as they planned to conceal and conspire to hide information implying that they had a guilty mind. However, it never ended there as their will to conceal information was transformed into action which they actually did, thus they possessed guilty action.

Question 5: Defendants’ sentences

The Federal Appeals court denied the defendants appeals and thus upheld the previous judgements. In the previous judgement, Stewart and Bacanovic were both sentenced to five months imprisonment, five months of home confinement, and two years’ probation for lying about a stock sale, conspiracy and obstruction of justice. Also, Stewart was fined 30,000 dollars while Bacanovic was fined only 4,000 dollars.

Question 6:

Based on the case, I don’t think that the punishment accorded to the defendants was fit for the crime committed. Stewart and Bacanovic were found guilty of conspiracy, concealing material information from and making false statements to government officials, and obstructing an agency proceeding. The jury also found Bacanovic guilty of perjury. These are more than one crime that is all punishable by imprisonment. The punishment for conspiracy in the United States is a maximum of five years in prison and a maximum fine of 250,000 dollars. The defendants’ actions led to losses in the stock exchange while they might have indirectly benefited from their actions. The United States is a country that holds up integrity values and anyone in public office should be a person of integrity. To promote such behaviors, a maximum sentence would be ideal, but since their crimes weren’t much serious, a three-year conviction behind the bars would be a fair sentence that would as well deter other people from committing such crimes in future.

Question 7: The Securities and Exchange Commission (SEC) also filed a civil lawsuit against the defendants.

The Security and Exchange Commission claimed that the defendants committed securities fraud by engaging in illegal insider trading.

By the end of the next trading day, the price of ImClone stock had dropped by 16%, and by Stewart selling her shares, she avoided losing 45,673 dollars.

According to SEC, the defendants on multiple occasions lied to the Commission’s staff, the United States Attorney’s Office for the Southern District of New York, and the FBI about the events of December 27, 2001, as well as the facts surrounding Stewart’s sale of ImClone stock. They fabricated an alibi for Stewart’s trade and misrepresented facts concerning her trade.

According to SEC, the Defendants Violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5. Based on this, SEC sought relief that Stewart be barred from acting as a director and limiting her activities as an officer, order the defendants to pay civil money penalties, order the defendants to disgorge, jointly and severally, the losses avoided by Stewart’s sale of ImClone securities and to pay prejudgment interest. Finally, SEC requested a permanent enjoining the defendants, their agents, servants, employees, and attorneys, and any other person involved in the fraud.

Research Task #1 (20 points total) – Wickard v. Filburn, 317 U.S 111 (1942)

Research Task #1 (20 points total) – Wickard v. Filburn, 317 U.S 111 (1942)

Who was the plaintiff and who was the defendant in the case?

Plaintiff – Wickard (the party who initiates a law suit)

Defendant – Filburn (A person whom a law suit has been initiated).

Was this a federal or state case? Explain why.

Federal case – Federal court jurisdiction only hear cases in which the United States is a party, cases involving the violation of the Constitution or federal law, crimes on federal land, and bankruptcy cases. Based on the Wickard v. Filburn, 317 U.S. 111 (1942) case, it involved a violation of federal law – the Agricultural Adjustment Act of 1938 which intended to regulate the price of wheat in the national market.

Was this a criminal or civil case? Explain why.

The Wickard v. Filburn, 317 U.S. 111 (1942) is a criminal case. A criminal case happens when the government files a case in court to punish someone (the defendant) for committing a crime. In this case, Filburn committed a crime against the federal government, and this is why he was sued for overproduction of wheat way above his allotment as a small farmer.

What were the facts of the case?

Filburn was a small farmer from Ohio. He harvested nearly 12 acres of wheat way above his allotment under the Agriculture Adjustment Act of 1938. As a result, Filburn was penalized for violation of the Act. In defense, Filburn argued that the extra wheat produced in violation of the law had been used for his own use, and thus had no effect on the interstate commerce as he never took it to the market. According to Filburn, he had not violated the law as the extra wheat was not subjected to regulation under the Agricultural Adjustment Act of 1938.

What laws or laws were involved in this case?

The Agriculture Adjustment Act of 1938 was meant to regulate the price of wheat at the national level.

What did the U.S. Supreme Court decide? Be sure to explain the court’s decision and the reasoning behind the decision.

The Supreme Court held that the production quotas under the Agricultural Adjustment Act of 1938 were constitutionally applied to the agricultural production that was consumed purely interstate as the effects upon interstate commerce placed it within the power of the Congress to regulate wheat production under the commerce clause. The Court reasoned that Congress could regulate activity within a single state under the Commerce Clause, even if each individual activity had a trivial effect on interstate commerce as long as the aggregate would result in a substantial effect on interstate commerce.

Do you agree with the court’s decision? Why?

While it may be seen as illegal to control the amount of agricultural production, some regulations are aimed at making sure that the prices are regulated, and this can only be achieved by limiting the number of goods produced. The Agricultural Adjustment Act of 1938 aimed at stabilizing the wheat prices on the national market which is a good approach to protecting the farmers. Filburn’s actions could not have had an impact on interstate commerce, but the cumulative actions of thousands of other individuals with the mind like Filburn would certainly make the effect become substantial, making it difficult to stabilize the prices of wheat on the national market. Therefore, despite Filburn claiming to be innocent, his activity was subject to regulation by Congress to prevent the aggregate from having a substantial impact on interstate commerce, even if the individual effects are trivial. Therefore, I do agree with the Supreme Court’s decision.

Case application in regard to interstate commerce and commerce clause

Interstate commerce refers to the transaction or transportation of products, services or money across state borders. The jurisprudence around Congress’s power under the commerce clause is central to regulating the trade of products across the states. Based on the case study, since the business is based in Arizona, and wants to expand to Nevada, New Mexico, and South California, they will have crossed the state boundaries and now operating within interstates which makes it subject to regulation by Congress. Availing their products in these states will have an impact on the number of spices and seasoning, which will have an effect on the national prices. Based on this, the business will be subject to the commerce clause, giving Congress the power to regulate commerce within the mentioned states. As a result, the business may be negatively affected as they may find themselves violating the Agricultural Adjustment Act due to increased commodities in the market having a cumulative effect that can lead to price destabilization.

Personal jurisdiction implies that the judge has the power to make decisions affecting a person depending on the activity they are engaged in. Personal jurisdiction occurs in the state in which the court sits, and the defendant needs to voluntarily appear in the court. Minimum contacts is a procedure used to determine when it is appropriate for a court in one state to assert personal jurisdiction over a defendant from another state. Based on this, courts from Nevada, New Mexico and South California would potentially have personal jurisdiction over the spices and seasonings business owner if the business is sued as they come from a different state – Arizona.

Research Study – Florida International University – Spring, 2020

Research Study – Florida International University – Spring, 2020

4857755099050Part I: Imagine you saw the following Facebook Page. Carefully read EVERYTHING on this page, as we will ask you about your impressions of Abigail Foster (the Facebook owner) on the next page of this survey.

2381885595693500800100679450Abigail Foster

00Abigail Foster

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Part II: Without looking back, please rate your impressions of Abigail Foster’s test-taking behavior below

Strongly Disagree Strongly Agree

1 2 3 4 5 6

Abigail’s behavior was wrong Abigail’s behavior was understandable Abigail’s behavior was reasonable Abigail’s behavior was unethical Abigail’s behavior was immoral Abigail’s behavior was appropriate Abigail’s behavior was unacceptable Part III: Without looking back, please rate how YOU would advise Abigail, rate how YOU would respond if you mistakenly received the answer key from the professor, and then generally rate Abigail

Strongly Disagree Strongly Agree

1 2 3 4 5 6

I would advise Abigail to keep silent I would try to comfort Abigail I would give Abigail the same advice that her friends gave her If I received the answers, I would keep silent If I received the answers, I would confess Abigail seems warm Abigail seems good-natured Abigail seems confident Abigail seems competitive Abigail seems sincere Abigail seems moral Abigail seems competent Part IV: Please provide the following demographic information. Note: you can leave blank any question you feel uncomfortable answering.

1. What is your gender (Mark one with an X)? _____ Male _____ Female

2. What is your age? __________

3. What is your race/ethnicity? (Mark one with an X):

___ Caucasian ___ Hispanic American ____ Native Indian ___ African American

___ Asian American Other: __________________ (Please Indicate)

4. Is English your first language? (Mark one with an X): _____ Yes _____ No

If no, what is your first language? __________________

5. Are you a student at FIU (Mark one with an X): _____ Yes ______ No

6. What is your relationship status? _____ Single / No Relationship _____ In a relationship

Part V: Without looking back, what general feedback did Abigail’s friends give her? (Mark one with an X)

___ The feedback supported her behavior ___ The feedback opposed her behavior ___ Feedback was mixed