Bankruptcy Law

Answer choices

1. A

   Too Strong1% picked this

   Bankruptcy laws always result from gradual changes in philosophy followed by sudden

   The passage does not provides enough information to describe all shifts in bankruptcy laws.

   1%
2. B

   Unsupported Comparison / Too Strong2% picked this

   Changes in bankruptcy law were initiated by the courts and only grudgingly

   The passage does not indicate whether the courts or legislators were the first to advocate for changes to bankruptcy laws. Furthermore, that the courts direct the reorganization of insolvent economic entities (third paragraph) does not mean that they were the source of changes to bankruptcy laws.

   2%
3. C

   Intuition Trap4% picked this

   The adjustment of bankruptcy laws away from a punitive focus was at first bitterly

   The passage does say that the increasing reliance on declarations of bankruptcy has drawn widespread criticism (first paragraph), but it does not say from whom. Intuitively, it might make sense that creditors would oppose debt forgiveness, but the passage does not say that nor is that a commonsense standard given that creditors did not benefit from the punitive approach either (second paragraph).

   4%
4. D

   Correct84% picked this

   Bankruptcy laws underwent change because the traditional approach proved inadequate and contrary to the

   Why this is right

   This is supported in the third paragraph.

   Skill tested: Inference · how this choice captures the passage's function is the move to repeat next time.

   84%
5. E

   Unsupported Comparison9% picked this

   The shift away from a punitive approach to insolvency was part of a more general trend in society toward

   The passage does not support a view about a general trend towards rehabilitation. The passage correlates the changes to bankruptcy laws with the increasing reliance on declarations of bankruptcy (lines 6–9).

   9%