Reading comp PrepTest 158 · Section 1 · Question 27

Passage

 The use of criminal sanctions against corporations is well established, but the practice has recently come under fire from legal Remaining source text redacted.
Passage walkthrough
Passage Summary Topic:
Legal

Paragraph 1
  • Paragraph note
    • Legal theorists view: Hold corporations civilly, not criminally, liable
  • Views, minor Meta-Structures, and the author's attitude
    • Comparison between civil and criminal liability:
      • Both impose punishments, try to deter bad behavior, and worsen the company's reputation (second sentence)
    • List of reasons why civil liability is more appropriate for corporations, according to theorists:
      • Civil liability is better at determining the appropriate level of damages (third sentence)
      • Criminal liability costs corporations more, which causes society to pay more for corporation's products (fourth sentence)
      • Civil liability is cheaper for the government (last sentence)
    • Author's attitude: "well established" (first sentence)
Paragraph 2
  • Paragraph note
    • Author's rebuttal: Criminal liability is more appropriate for corporations
  • Views, minor Meta-Structures, and the author's attitude
    • List of reasons why criminal liability is more appropriate for corporations, according to the author:
      • Criminal liability, which includes the power to question corporate officials, is more likely to deter bad behavior (first and second sentence)
      • In contrast, civil liability requires a victim with enough money to sue, which weakens its ability to deter bad behavior (third sentence)
      • Criminal liability expresses disapproval and society's rejection of bad behavior; civil liability does not (fourth through last sentence)
    • Author's attitude: "even if" (first sentence), "much stronger deterrent" (first sentence), "considerable" (second sentence), "Most importantly" (fourth sentence), "ill suited" (last sentence)
Paragraph 3
  • Paragraph note
    • Other legal theorists' view: Hold individuals within corporations, not corporations, criminally liable
  • Views, minor Meta-Structures, and the author's attitude
    • List of reasons why criminal liability is more appropriate for individuals, according to other legal theorists:
      • Criminal liability for individuals better at deterring bad behavior because individuals fear criminal liability and losing their job (second sentence)
      • Punishing corporations with fines harms shareholders, creditors, laid-off employees, and a public who has to pay higher prices (last sentence)
Paragraph 4
  • Paragraph note
    • Author's rebuttal: Holding individuals liable is unlikely to lead to better corporate behavior
  • Views, minor Meta-Structures, and the author's attitude
    • List of reasons why holding individuals criminally liable is misguided, according to the author:
      • Corporations have complex structures, which makes finding the wrongdoer impossible (second sentence)
      • Corporations find it cheaper to pin the wrongdoing on one person and not change its behavior (third sentence)
    • Cause-and-effect relationship:
      • Holding a corporation criminally liable decreases shareholders' wealth, which causes shareholders to push for better corporate behavior (fifth sentence)
    • Author's attitude: "also misguided" (first sentence), "most effective" (fourth sentence), "works on" (fifth sentence), "outweighed" (last sentence), "greater social interest" (last sentence)


Main Point:
Although some criticize the well-established use of criminal liability for corporations, it is the most effective way to deter illegal corporate activity.

Key Lines
Paragraph 1, Sentence 1 (P1, S1) - Legal theorists' view
P2, S1 - Author's rebuttal of legal theorists
P3, S1 - Other legal theorists' views
P4, S1 - Author's rebuttal of other legal theorists

Meta-Structure
Rebutting Critics: Of our Meta-Structures, this passage best fits the Rebutting Critics.* Perhaps it would be even more accurate to say this passage utilizes a Rebutting Two Sets of Critics Meta-Structure. Twice, the author describes a view held by legal theorists who criticize the well-established practice of using criminal sanctions against corporations. Each time, the author rebuts those critics.

For Rebutting Critics passages, the main point is generally the author's central defense or a summary of the defense. Unfortunately, the author never summarized their defense, so we'll have to do that for them: Although some criticize the well-established use of criminal liability for corporations, it is the most effective way to deter illegal corporate activity.

*Some may argue that this is a Correcting the Record or Criticizing a Viewpoint Meta-Structure —understandably so, since there's considerable overlap between these Meta-Structures and the Rebutting Critics Meta-Structure. If either of those designations makes more sense to you, then it's totally OK to go with either! Doing so will yield the same main point and broad understanding of the text that we came up with by designating this passage a Rebutting Critics Meta-Structure. Technically speaking, when the passage frames the view the author rebuts as a misunderstanding or oversight, it's best to consider the passage a Correcting the Record passage. If the author otherwise argues another view is wrong, unjustified, or misguided, it's best to consider the passage a Criticizing a Viewpoint passage. And when the view the author rebuts is framed as a criticism (as it is here, see "come under fire" in P1, S1), it's best to consider the passage a Rebutting Critics passage

List: Each paragraph is structured around a list. Note the abundance of phrases that suggest the author is advancing point-by-point through a list: "Furthermore" (P1, S4; P2, S3), "Finally" (P1, S5), "Most importantly" (P2, S4), "Additionally" (P3, S3), "Another problem" (P4, S3).

In relaying the legal theorists' positions in the first paragraph, the author lists several reasons the theorists think corporations should be held civilly liable. In rebutting their view in the next paragraph, the author lists several reasons they're wrong. The same pattern holds in the third and fourth paragraphs. Because lists dominate the passage, we will certainly get at least a couple of questions on a few items listed out.

Last Thoughts?
Unfortunately, this legal passage is a bit easier to understand if you have a basic knowledge of the U.S. legal system. If you're having trouble grasping the different forms of liability discussed in the passage, he's a quick primer.

The U.S. legal system can be reduced to two systems: civil law and criminal law. (There are other systems, but they don’t matter in this passage.) Civil law is when one person or group sues another person or group. (These civil lawsuits have slightly different rules, or "procedural protections" (P1, S5), as criminal lawsuits.) So when the author describes holding corporations civilly liable, that's what they're talking about — letting, for example, a random person sue a company whose CEO was accused of insider trading. This person can’t be completely random though — they’ll need to prove they were harmed by the corporate wrongdoing and they’ll need to pony up for a lawyer. (This is what the author means when they say civil litigation “requires an identifiable victim with the necessary resources to commence litigation” in P2, S3). If a judge or jury rendered a verdict against the company, the court would order the company to pay the injured party and/or change its behavior. These penalties are what the first paragraph's legal theorists refer to as "damages" (P1, S3).

On the other hand, criminal law involves the government prosecuting a person or group person or group alleged to have committed a crime. The person or group alleged to have committed a crime is called the defendant. When the author talks about holding the corporation or the individual criminally liable, the issue is simply who the defendant is. Is the defendant the company or an individual within the company? Since a guilty verdict for the defendant can result in a prison sentence or hefty fines, that determination carries major implications for the defendant, who- or whatever it is.

Question prompt

The author would be Remaining source text redacted.
Why the credited answer is right

Credited answer: E

The notes below walk through why it fits the stem and how to eliminate the rest.

Question Type

Legal

Answer choices

  1. A
    In many instances, corporations Remaining source text redacted.
    Why choice A is not credited
    Is this answer choice consistent with the author's main point or what you can recall about the author's views?

    This is inconsistent with the author's main point. The author believes that criminal sanctions are better at deterring corporate wrongdoing than civil sanctions. So the author certainly wouldn't agree with the claim that corporations would be deterred by the threat of civil sanctions when they’re not deterred by the threat of criminal sanctions. We can safely eliminate this one without reviewing the passage.
  2. B
    The main function of Remaining source text redacted.
    Why choice B is not credited
    Is this answer choice consistent with the author's main point or what you can recall about the author's views?

    It doesn't contradict the main point, so we can't eliminate it at this point.

    If we can't recall whether the author would agree with this, we should ask if we remember reading about the author's views on the "main function of civil liability." If you don't remember reading this detail, it's best to table this answer choice and move on to the next one.

    If you remember reading about this detail, we can review the passage to determine whether the author would agree with it. Upon review, we would see that the author says that civil liability requires an "identifiable victim with the necessary resources to commence litigation" (P2, S3). If civil suits only apply to cases with an identifiable victim, then civil liability cannot punish harmful acts in cases with no identifiable victim. Therefore, the author definitely disagrees with this statement.
  3. C
    Currently, corporations are more Remaining source text redacted.
    Why choice C is not credited
    Is this answer choice consistent with the author's main point or what you can recall about the author's views?

    Our anticipated main point was, "Although some criticize the well-established use of criminal liability for corporations, it is the most effective way to deter illegal corporate activity." If corporate criminal liability is "well-established," then corporations must be more often subject to criminal prosecution. We can eliminate (C) because it conflicts with the main point.
  4. D
    Many people who criticize Remaining source text redacted.
    Why choice D is not credited
    Is this answer choice consistent with the author's main point or what you can recall about the author's views?

    This doesn't conflict with the main point.

    If we can't recall whether the author would agree with this, we should ask if we remember reading about the author's views on those who criticize the use of criminal sanctions. If you don't remember reading this, it's best to table this answer choice and move on to the next one.

    If you remember reading about this, we can review the passage to determine whether the author would agree with it. Since this asks about the author's views on those who criticize the use of criminal sanctions against corporations, the supporting text would have to be in the second paragraph. In that paragraph, the author never claims that the critics of criminal sanctions believe that corporate wrongdoing doesn't harm individuals. These critics didn't argue that corporate wrongdoing was victimless — they argued that criminal sanctions were too costly to society and the government (P1, S4-5). For this reason, we can't say the author would agree with (D).
  5. E
    In a significant number Remaining source text redacted.
    Why choice E matches the stem
    Question Type:
    Tone/Author Agree

    Strategy Overview:
    Review the main point, and use notes or highlighted/underlined text in the passage to recall the author's attitude, and find the answer that best reflects your understanding of the main point/author's attitude

    Answer Anticipation:
    This question asks us about the author's view, but doesn't provide any insight into the topic of the correct answer or where the supporting information might show up in the passage. This means the correct answer is likely to relate back to the author's main point. As such, we'll need to rely on our big-picture understanding of the passage to answer this question. We should start by reminding ourselves of the main point (either by reviewing what we said after reading the passage or by rereading our answer to the main point question). We can also review any notes about the author's attitude or any text we highlighted because it expressed the author's opinion. After doing that, we can head to the answer choices, tabling those that don't line up with the main point. For those answer choices that conform to the author's main point, we'll use our notes and the passage to see if it's correct.

    Answer Choice Explanation:
    Is this answer choice consistent with the author's main point or what you can recall about the author's views?

    This doesn't conflict with the main point.

    If we can recall reading about this detail, we can review the passage to see if it's supported. In the second paragraph, the author says an identifiable victim must have the necessary resources to sue before civil litigation can be brought against a corporation (P2, S3). The author says this requirement "weakens" civil liability's ability to deter corporate wrongdoing. How could this requirement weaken deterrence? The must be many cases of corporate misconduct in which there isn't an identifiable victim, or the victims lack the resources to bring a civil suit. Therefore, the author almost certainly agrees with (E), making it the correct answer.

    Key Takeaway:
    This is a very challenging question because selecting the correct answer requires us to make an inference from one sentence the author included in the middle of the second paragraph. Still, we could have at least narrowed the answer choices down if we relied on our memory of the main point. (A) and (C) conflict with the main point, so we can confidently eliminate those without checking the passage.

What this tests

Question analytics

Based on historical answer selection rates for this question.

Answer choice distribution

  1. A 9%
  2. B 17%
  3. C 16%
  4. D 29%
  5. E Credited 29%

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