Reading ComprehensionDifficulty: Hard

PT145 S1 P2 Q13 Explanation

Corporate Crime

A free, expert breakdown of this official LSAT Reading Comprehension question.

TopicsNon-Author OpinionLaw

Keep going in LSAT Lab

  • Save & drill this skill build targeted practice sets from questions like this one

  • Video walkthroughs watch every question solved step by step

  • 81 official LSATs as questions, timed sections & full-length tests

Full official LSAT questions are available through LawHub. This page provides LSAT Lab's explanation, strategy, and review tools without republishing the full official question.

Passage

The following passage is adapted from an article 1993.

How severe should the punishment be for a corporate crime—e.g., a crime in which a corporation profits from knowingly and routinely selling harmful products to consumers? Some economists argue that the sole basis for determining the penalty should be the reckoning of cost and benefit: the penalty levied should exceed the profit the fine were, say, $7 million, these economists would feel that justice had been done.

In arguing thus, the economists hold that the fact that a community may find some crimes more abhorrent than others or wish to send a message about the importance of some values—such as, say, not endangering citizens’ health by selling tainted food—should not be a factor in affect corporations’ earnings rather than try to assess their morality.

But this approach seems highly impractical if not impossible to follow. For the situation is complicated by the fact that an acceptable reckoning of cost and benefit needs to take into account estimated detection ratios—the estimated frequency at which those committing a given type of crime are caught. Courts must assume that not $7 million but at least $60 million, according to the economists’ definition, to be just.

The economists’ approach requires that detection ratios be high enough for courts to ignore them (50 percent or more), but recent studies suggest that ratios are in fact closer to 10 percent. Given this, the astronomical penalties necessary to satisfy the full reckoning of cost and benefit might arguably put convicted corporations crimes—is necessary so that penalties for corporate crimes will be practical as well as just.

What this question is testing

Non-Author Opinion

Your task

Pin down exactly what the question asks about the passage — a detail, the author's view, the structure, or the main point — before looking at the choices.

Common trap

Answers that restate a true detail from the passage but don't answer the specific question being asked.

Winning move

Anticipate the answer in your own words from the passage, then find the choice that matches that prediction.

Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.

The question
13.

With which one of the following statements would the economists discussed in the passage be most

Answer choices

  1. Correct51% picked this

    The possibility of a corporation’s going out of business should not be a factor in determining the size of the penalty levied against

    Why this is right

    Yes, this is derivable from our 1st of the three tidbits. These economists think "the sole (only) basis for determining penalty is reckoning of cost and benefit, in the sense that the cost of the penalty must outweigh the benefit (profit) of the crime." The possibility of a corporation's going out of business is thus no part of the basis for determining penalties. We could write an infinite number of possible correct answers here, because if you say "The sole basis for determining A is X", then you know that - B should not be a factor in determining A - C should not be a factor in determining A - mayonnaise should not be a factor in determining A - roller coasters should not be a factor in determining A LSAT frequently regurgitates a claim like "The only valid X is Y" into an answer choice like "Something that is only Z would not qualify as Y".

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

  2. Moral Weight vs. Penalty24% picked this

    The community’s opinion of the moral offensiveness of a corporate crime should not be a factor in assigning a

    This answer starts out dreamy, but our 3rd tidbit was saying that "community's moral outrage / message-sending should not be a factor in determining penalties. It can still be a factor in assigning moral shaming, just not in terms of assigning a price tag.

  3. Out of Scope8% picked this

    The moral offensiveness of a corporate crime should not be a factor in determining the penalty levied against the corporation unless it tends to

    Out of Scope: unless it increases size The economists never provide any qualification or caveat to their statement. Moral offensiveness "should not be a factor in determining penalties". Period. Full stop. Since they didn't hedge that statement with some "UNLESS exception", we can't attribute some hedged version of that statement to them. The exception this answer choice is describing is sort of humorous, because moral offensiveness would almost always tend to increase the size of the penalty. That's the common sense understanding of how a community's moral abhorrence would affect potential penalties! So this "exception" would be constantly occurring, which makes it sound silly as a principle. Like if I said, "You should not drive at night, unless your headlights tend to illuminate the road in front of you."

  4. Contradicted10% picked this

    The likelihood of a corporation’s recommitting a particular crime should be the main factor in determining the size of the penalty levied against

    This contradicts our first tidbit: - SOLE basis for penalty for corporate wrongdoing should be that the penalty for the crime outweighs whatever profits were obtained by means of the crime. This answer is saying that something different (likelihood of repeat offense) should be the main factor / the primary basis for determining the penalty.

  5. Contradicted7% picked this

    The penalty levied against a corporation for a particular crime should increase in direct relation to the number of times the corporation has

    This contradicts our first tidbit: - SOLE basis for penalty for corporate wrongdoing should be that the penalty for the crime outweighs whatever profits were obtained by means of the crime. This answer is saying that something different (how many times this infraction has been committed in the past) should be the main factor / the primary basis for determining the penalty.

Continue the review in LSAT Lab

Save this question, watch the video walkthrough, and drill similar questions in your LSAT Lab account.

LSAT Lab

Turn this review into a targeted study plan.

Save this question, drill more like it, watch the video walkthrough, and track your progress in your LSAT Lab account.

Start practicing free