Corporate Criminal Liability

• NCJ Number: 214577
• Journal: American Criminal Law Review Volume: 43 Issue: 2 Dated: Spring 2006 Pages: 311-339
• Author(s): Michael Viano; Jenny R. Arnold
• Date Published: 2006
• Length: 29 pages
• Publication Format: Article
• Publication Type: Legislation/Policy Description
• Language: English
• Country: United States of America

Annotation

This article outlines the principles that guide the law of corporate criminal liability and discusses the Federal sentencing guidelines' mechanism for sentencing convicted organizations, with attention to the requirements of the Sarbanes-Oxley Act of 2002 and the effect of the recent U.S. Supreme Court decision in United States v. Booker (2000).

Abstract

One principle of the law of corporate criminal liability is that corporations are only liable for the acts of employees if the employees are acting within the scope and nature of their employment. A second principle is that a corporation will not be liable for the acts of its employees unless those actions are designed to benefit the corporation. A third principle is that a court must impute the intent of the individuals to the corporation in order to hold a corporation liable for its employees' acts. Regarding sentencing, corporations are punished in accordance with the Federal Organizational Sentencing Guidelines. Punishment consists of a fine calculated postconviction that is based on either the victim's loss or the defendant's gain multiplied by a factor in the U.S. Sentencing guidelines. Probation may be used to ensure that another sanction will be fully implemented or to ensure that the organization will act to reduce the likelihood of future criminal conduct. Through the Sarbanes-Oxley Act, Congress directed the Sentencing Commission to review and amend the sentencing guidelines to ensure that the provisions that apply to organizations are sufficient to deter and punish organizational criminal conduct. Prior to United States v. Booker (2000), an upward or downward departure from the Organizational guidelines' applicable fine range was warranted if the court found that there were aggravating or mitigating circumstances. After "Booker" judges must still consult the guidelines, but are not explicitly bound by them. 208 footnotes