Reading ComprehensionDifficulty: Hard

PT158 S1 P4 Q25 Explanation

Criminal Sanctions

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

TopicsNon-Author OpinionLaw

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Passage

The use of criminal sanctions against corporations is well established, but the practice has recently come under fire from legal theorists who maintain that corporations should be held civilly rather than criminally liable for wrongdoing. Civil liability, these theorists argue, shares important features with criminal liability: both impose punishment on a company, the government: the greater procedural protections of criminal law make deterrence through criminal prosecution extremely expensive.

Even if it is less economical, however, criminal liability is a much stronger deterrent. The considerable enforcement powers involved, including the ability to detain and question corporate officials, are themselves significant deterrents. Furthermore, the fact that private civil litigation requires an identifiable victim with the necessary resources to commence litigation weakens its society forcefully rejects such conduct. Civil liability is ill suited for this purpose.

Other legal theorists who do not object to criminal sanctions per se argue that individuals within corporations, rather than corporations themselves, are the appropriate target of criminal prosecution in cases involving corporate wrongdoing. They maintain that individuals within corporations are more responsive to deterrence because they generally fear prosecution and the loss be laid off, and ultimately the public, which is forced to absorb higher prices.

However, this approach is also misguided. Corporations often bury responsibility within complex hierarchies, with the result that no individual responsible for corporate misdeeds can be identified. Another problem is that under this approach, a corporation will often find it cheaper to designate and compensate an internal scapegoat to face prosecution than to by the greater societal interest in ensuring the safety of employees, the public, and the environment.

What this question is testing

Non-Author Opinion

Topic

Should we keep putting corporations in the criminal dock, or is there a better way? Two groups of critics say "ditch the corporate criminal trial" — one wants civil suits, the other wants to go after individual executives. The author says both groups are wrong.

Framework

Challenge a Position — but make it a double. The author fights a two-front war, taking on Team Civil in Round 1 and Team Individual in Round 2. Watch for the "however" flags that signal when the author grabs the microphone back from the critics.

Main Point

Criminal sanctions against corporations pack a punch that nothing else can replicate. Civil suits lack the moral weight. Individual prosecution breaks down when nobody can find the guilty party in a corporate maze. The author's thesis in a nutshell:

Summary

P1 — Team Civil makes their case. These critics see criminal sanctions as wasteful overkill when a civil lawsuit could get the job done cheaper.

P2 — The author fires back. "However" — the author's favorite word — signals the counterattack. Criminal law does something civil law simply cannot: it publicly brands the corporation as a wrongdoer, and that moral scarlet letter is the most powerful deterrent we have. Plus, civil suits need a victim who can afford a lawyer. What happens when a corporation poisons the air a little bit for everyone but a lot for nobody? No individual plaintiff, no civil suit. Only the state, armed with criminal law, can step in.

P3 — Team Individual takes the stage. These critics follow the money: fine a corporation and the cost flows downstream to people who had nothing to do with the wrongdoing. Higher prices, lower dividends, lost jobs.

P4 — The author delivers the knockout. Another "however," another counterattack. Good luck finding the guilty executive when the corporation has scattered accountability across a maze of departments and committees. Responsibility is buried so deep that no single person holds enough of it to prosecute. And here is the real insight: punishing the corporation does not just deter the few bad apples — it motivates the ENTIRE corporate culture to stay clean, because shareholders and employees see what happens when the company gets convicted. The author admits there are some collateral costs but says the deterrent benefits outweigh them.

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

The question
25.

It can be inferred from the passage that those who support the criminal prosecution of individuals within corporations rather than the criminal prosecution

Answer choices

  1. Out of Support Window3% picked this

    shareholders generally do not have the power to influence a corporation to

    This answer looks trappy because it uses language from the 4th paragraph, where the author argues sanctioning corporations incentivizes shareholders to push for better behavior. But this question is about the individual-prosecution theorists' view in paragraph 3. Those critics' argument is about unjust cost-shifting to shareholders, not about shareholders' ability to influence corporate behavior. Even as an inference, "no power to influence" is an absolute claim. Implicit in the theorists' concern about punishing shareholders is the assumption that shareholders aren't directly to blame — but that's different from saying they have zero influence over the corporation.

  2. Too Strong30% picked this

    corporate employees have incentive to refrain from wrongdoing only if they are subject to

    This definitely reflects the right kind of sentiment of our first detail (sanctioning individuals has more deterrent effect). But the 3rd paragraph just says that individuals are more responsive to deterrence if they think they're subject to individual sanctions. It doesn't say that there is zero deterrent effect when the sanctions are targeted at the corporation, not the individual. However, that's what this answer choice is saying.

  3. Out of Support Window14% picked this

    it is more difficult to prosecute a corporation for wrongdoing than it is to prosecute an

    Nothing in the 3rd paragraph discusses how hard it is to successfully litigate an individual vs. a company. That's a distinction the author brings up in the 4th paragraph, which is beyond our Support Window for this question.

  4. Correct50% picked this

    it is unjust for the public to have to pay, through higher product prices, the costs incurred by a corporation as

    Why this is right

    The last sentence of the 3rd paragraph is saying that it sucks when a lawsuit ends up fining a corporation, rather than just the individuals responsible. "This fine is (unfairly) punishing shareholders, creditors, employees, and consumers." This answer choice just affirms a part of that idea: We should avoid sanctioning corporations, since the harm would reach consumers.

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

  5. Out of Support Window3% picked this

    corporate wrongdoing rarely harms an identifiable victim with the resources necessary

    Nothing in the 3rd paragraph discusses whether someone who wants to sue a corporation generally has enough money to do so. This issue of "having enough money to sue" is brought up by the author in the 4th paragraph, which is beyond the Support Window for this question.

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