CORPORATIONSCORPORATIONSCORPORATIONSCORPORATIONSCORPORATIONS
I. CRIMINAL LIABILITY OF CORPORATIONS
At common law, a corporation could not be indicted
for a criminal act. State v. Morris and E.R. Co., 23 N.J.L.
360, 364 (Sup. Ct. 1852). See also New York Central and
H.R.R. Co. v. United States, 212 U.S. 613, 621 (1908).
Today, any domestic or foreign corporation doing
business in the State may be liable for almost any criminal
act. N.J.S.A. 2C:2-7; N.J.S.A. 2C:1-14g; In the Matter of
Opinion 668 of the Advisory Committee on Professional
Ethics, 134 N.J. 294, 301 (1993). See Kathleen F. Brickey,
Rethinking Corporate Liability Under the Model Penal
Code, 19 Rutgers L.J. 593, 632 (1988). See also United
States v. Wise, 370 U.S. 405, 82 S.Ct. 1354 (1962);
United States v. Sain, 141 F.3d 463 (3d Cir. 1998).
N.J.S.A. 2C:2-7a specifically defines the scope of
potential corporate enterprise liability. The statute
provides that a corporation may be criminally liable for:
(1) unlawful conduct of an agent of the corporation
acting within the scope of his/her employment and on
behalf of the corporation, unless the statute defining the
offense indicates a legislative intent not to impose
liability on corporations; (2) conduct constituting an
omission to discharge a specific duty where the law
requires such action; (3) illegal conduct authorized,
engaged in, solicited, requested, commanded, or
recklessly tolerated by the board of directors or by a high
managerial agent acting within the scope of his
employment and on behalf of the corporation. The terms
“corporation,” “agent” and “high managerial agent” are
defined in N.J.S.A. 2C:2-7b. See State v. Pennsylvania
R.R. Co., 84 N.J.L. 550, 554 (Sup. Ct. 1913). See also
American Soc. of Mechanical Engineers, Inc. v. Hydrolevel
Corp., 456 U.S. 556 (1982); American Tel. and Tel. Co.
v. Winback and Conserve Program, Inc., 42 F.3d 1421 (3d
Cir. 1994); United States v. Hilton Hotels Corp. 467 F.2d
1000 (9 Cir. 1972), cert. denied,, 409 U.S. 1125 (1973);
19 C.J.S. § 736 (1990).
A corporation may be liable for the acts of its agents,
if the acts are within the scope of the agents’ apparent
authority, even if such acts were actually contrary to the
corporation’s instructions. United States v. Investment
Enterprises, Inc., 10 F.3d 263 (5th Cir. 1993); United
States v. Basic Construction Co., 711 F.2d 570, 572 (4th
Cir. 1983); United States v. Hilton Hotels Corp. 467 F.2d
1000 (9 Cir. 1972), cert. denied,, 409 U.S. 1125 (1973);
United States v. American Radiator & Standard Sanitary
Corp., 433 F.2d 174, 204-05 (3d Cir. 1970), cert.
denied,, 401 U.S. 948 (1971); 19 C.J.S. § 738 (1990).Liability of the corporation may be found even if the
agents themselves have been acquitted. United States v.
Dotterweich, 320 U.S. 277, 279 (1943); United States v.
Cargo Service Stations, Inc., 657 F.2d 676, 684 (5th Cir.
1981); American Medical Association v. United States, 130
F.2d 233, 253 (3d Cir. 1942), aff’d 317 U.S. 519
(1942); United States v. LBS Bank-New York, Inc., 757
F.Supp. 496, 502 (E.D.Pa. 1990).Corporations have been held liable for a wide variety
of crimes, including manslaughter, State v. Central R.R.
Co. of New Jersey, 102 N.J.L. 475, 479 (Sup. Ct. 1926);
State v. Lehigh Valley R.R. Co. of New Jersey, 90 N.J.L. 372
(Sup. Ct. 1892); see David J. Reilly, Comment, Murder,
Inc.: The Criminal Liability of Corporations for
Homicide, 18 Seton Hall L. Rev. 378, (1988), theft, State
v. Graziani, 60 N.J. Super. 1 (App. Div. 1959)
(corporation obtained money under false pretenses), aff’d
o.b., 31 N.J. 538, cert. denied, 363 U.S. 830 (1960);
Joseph L. Sigretto and Sons, Inc. v. State, 127 N.J.L. 578
(Sup. Ct. 1942) (same), maintaining a disorderly house,
State v. Western Union Tel. Co., 12 N.J. 468 (1953),
nuisance, State v. Pennsylvania R.R. Co. 84 N.J.L. 550
(Sup. Ct. 1913); State v. Uvalde Asphalt Paving Co., 68
N.J.L. 512 (Sup. Ct. 1902), causing or risking
widespread injury or damage, contrary to N.J.S.A.
2C:17-2, State v. Iron Oxide Corp., 178 N.J. Super. 303
(Law Div. 1980) (disposal of chemical wastes); State v.
Collingswood Sewerage Co., 85 N.J.L. 567 (Sup. Ct.
1913), aff’d o.b. 86 N.J.L. 703 (E & A 1914), conspiracy,
State v. New Jersey Trade Waste Assn., 96 N.J. 8 (1985)
(conspiracy in restraint of trade); State v. Continental
Purchasing Co., 119 N.J.L. 257 (Sup. Ct.), aff’d o.b. 121
N.J.L. 76 (E & A 1938) (conspiracy to enforce collection
of money by means of intimidation), requiring an
employee to take a lie detector test, State v. Community
Distibutors, Inc., 64 N.J. 479 (1974); State v. Berkey Photo
Inc., 150 N.J. Super. 56 (App. Div. 1977),
misrepresentation of mileage of motor vehicles, Krigler v.
Banner Pontiac-Buick Opel, Inc. 120 N.J. Super. 572, 576
(Ch. Div. 1972), distribution of obscene materials, State
v. Manchester News, 118 N.H. 255, appeal dism. 439 U.S.
949 (1978) and espionage, United States v. American
Socialist Soc’y, 260 F. 885 (S.D.N.Y. 1919).II. CRIMINAL LIABILITY OF CORPORATE AGENTS AND EMPLOYEES
Agents, officers or directors of a corporation are
exposed to personal criminal liability as a result of