Ponzi Scheme Discussion Paper Questions
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Questions and Answers

What is a Ponzi Scheme?

  • A legitimate investment opportunity with guaranteed high returns.
  • An investment fraud that pays existing investors with funds from new investors. (correct)
  • A risk-free investment strategy that generates high returns for all participants.
  • A government-regulated financial scheme to boost the economy.

    • Why do Ponzi Scheme organizers promise high returns with little to no risk?

  • To comply with legal requirements for investment opportunities.
  • To attract more investors to ensure the scheme's success. (correct)
  • To encourage investors to diversify their portfolios.
  • To demonstrate ethical business practices.

    • What can result from a Ponzi Scheme?

  • Financial rewards for all participants.
  • Both civil and criminal trials from the same act. (correct)
  • Only criminal trials for theft and fraud.
  • Only civil trials for financial discrepancies.

    • What happens if four US Supreme Justices agree to grant CERT?

    <p>An appeal hearing is scheduled.</p> Signup and view all the answers

    Why are laws considered surprisingly similar around the world?

    <p>To ensure predictability, stability, and protection of property rights.</p> Signup and view all the answers

    What is the difference between ethics and law according to the text?

    <p>Ethics involves studying what's right, while law deals with what's legal.</p> Signup and view all the answers

    What is the guiding principle in common law that means 'let the decision stand'?

    <p>Stare Decisis</p> Signup and view all the answers

    Which type of law does the American legal system follow where each party pays their own lawyer fees regardless of the case outcome?

    <p>American Rule</p> Signup and view all the answers

    What is the primary role of District Courts in the American judicial system?

    <p>Act as fact finders and apply facts at trial</p> Signup and view all the answers

    How are State Judges selected in the American judicial system?

    <p>Elected</p> Signup and view all the answers

    What is the minimum number of Justices required to vote in favor of hearing a case in the Supreme Court?

    <p>4</p> Signup and view all the answers

    When Appeals Courts review cases, what is their primary focus?

    <p>Interpreting and applying the law</p> Signup and view all the answers

    Study Notes

    Fraudulent Schemes

    • A Ponzi Scheme is a fraudulent investment scam that promises high returns with little to no risk to its victims.

    Tactics of Ponzi Scheme Organizers

    • Ponzi Scheme organizers promise high returns with little to no risk to lure investors and convince them to participate in the scheme.

    Consequences of Ponzi Schemes

    • Ponzi Schemes can result in financial losses and legal consequences for the organizers.

    US Supreme Court Procedures

    • If four US Supreme Justices agree to grant CERT (Certificate), the Supreme Court will hear the case.
    • Laws are surprisingly similar around the world due to shared human experiences and social norms.

    Ethics vs Law

    • Ethics refer to moral principles that guide behavior, while law refers to rules and regulations enforced by authorities.

    Common Law Principles

    • The guiding principle in common law is 'stare decisis', which means 'let the decision stand', emphasizing the importance of precedent in judicial decision-making.
    • The American legal system follows the 'English Rule', where each party pays their own lawyer fees regardless of the case outcome.

    District Courts

    • The primary role of District Courts is to hear and decide federal cases involving federal laws and the US Constitution.

    State Judges

    • State Judges are selected through a combination of appointments, elections, and merit-based selection processes.

    Supreme Court Procedures

    • The minimum number of Justices required to vote in favor of hearing a case in the Supreme Court is four.

    Appeals Courts

    • When Appeals Courts review cases, their primary focus is on determining whether the lower court's decision was legally correct, rather than retrying the case.

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    Explore questions related to Ponzi schemes, including definitions, characteristics, and legal implications. Learn about famous Ponzi schemes like the Benie Madoff scandal.

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