Podcast
Questions and Answers
A Ponzi Scheme is an investment fraud where existing investors are paid with funds collected from new investors.
A Ponzi Scheme is an investment fraud where existing investors are paid with funds collected from new investors.
True
If something is legal, it is also moral and ethical.
If something is legal, it is also moral and ethical.
False
In the US Supreme Court, to grant 'CERT' on appeal, only 3 Justices need to agree.
In the US Supreme Court, to grant 'CERT' on appeal, only 3 Justices need to agree.
False
Laws around the world are remarkably different and lack commonalities.
Laws around the world are remarkably different and lack commonalities.
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Ethics is primarily concerned with doing what's wrong rather than what's right.
Ethics is primarily concerned with doing what's wrong rather than what's right.
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In the USA, American law follows the 'Loser Pay' rule, where the loser in a civil case must pay the winner's lawyers fees.
In the USA, American law follows the 'Loser Pay' rule, where the loser in a civil case must pay the winner's lawyers fees.
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Federal judges in the USA are elected by the President and confirmed by the Senate.
Federal judges in the USA are elected by the President and confirmed by the Senate.
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District Courts in the USA are primarily responsible for deciding questions of law, not fact.
District Courts in the USA are primarily responsible for deciding questions of law, not fact.
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The Supreme Court in the USA has discretion to decide which cases to hear, and 5 out of the 9 Justices must vote in favor of hearing a case.
The Supreme Court in the USA has discretion to decide which cases to hear, and 5 out of the 9 Justices must vote in favor of hearing a case.
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Cases decided by a State's Supreme Court in the USA can always be appealed to the federal court system.
Cases decided by a State's Supreme Court in the USA can always be appealed to the federal court system.
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Study Notes
Investment Fraud and Ponzi Schemes
- A Ponzi Scheme is an investment fraud that pays existing investors with funds from new investors, often promising high returns with little to no risk.
- The scheme organizers may not invest the money, and civil and criminal trials can result from the same act.
Legal and Ethical Considerations
- It is false to assume that if something is legal, it is also moral and ethical.
- Ethics is the study of doing what's right, not just what's not wrong.
Laws and the Judicial System
- Laws regulate business enterprises, human relationships, transfer, and control of property.
- Laws are similar around the world, striving for compatibility, and are surprisingly similar.
- Laws become predictable, adaptable, and fluid while being stable.
- Underdeveloped countries find it nearly impossible to do business without the rule of law to protect property rights.
- "Stare Decisis" means "Let the decision stand," which is important in common law.
Definition of Law
- Law is a set of rules of conduct coming from a controlling authority that has binding force and effect.
The American Judicial System
- The American judicial system does not follow the "Loser Pays" rule, where the loser in a civil case must pay the winner's lawyer fees.
- Instead, the American system follows the "American Rule," where each party pays their own lawyer fees, regardless of the outcome.
State and Federal Levels
- State courts handle disputes over state law, while federal courts handle disputes over federal law.
- State judges are elected, while federal judges are nominated by the President and confirmed by the Senate.
- Supreme Court Justices are nominated by the President and confirmed by the Senate, and are appointed for life.
Judges and Justices
- Judges preside over cases in a court of law, making legal decisions based on the law and evidence presented.
- Justices are specifically members of a supreme court, whether at the state or federal level, and participate in the interpretation and application of the law.
Court Levels
- District Courts: the first to hear cases, using juries, and expected to follow legal precedent set by higher courts (appeals/supreme).
- Appeals Courts: decide questions of law, not fact, and can order "remanding the case" for retrial if the district court trial was flawed.
- Supreme Court: the highest court in any jurisdiction, deciding what cases to hear, and creating binding precedent for all lower courts.
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Description
Prepare for your exam with these questions related to Ponzi schemes. Learn about the characteristics and consequences of Ponzi schemes, using examples like the Bernie Madoff case.
