Reading Comprehension

PT158 · S1 · P4 · Q26 Criminal Sanctions

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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.

Written Summary below video summary

Topic

Criminal vs. civil sanctions for corporate misdoings (as well as criminal sanctions against the corporation vs. against individuals within it)

Framework

Challenge a Position (she challenges two different positions)

Main Point

Criminal is better than civil, and criminally sanctioning corporations is better than criminally sanctioning individuals at those corporations.

Summary

P1 - Opposing Position #1 (let's use civil, not criminal sanctions)

We get our first Purpose Pivot (but, yet, however, recently) in the 2nd half of the first sentence. This sets the stage for the main topic: should we go after corporate wrongdoing with criminal or civil sanctions?

These legal theorists "maintain / argue / claim" a series of points: Point 1. Furthermore, Point 2. Finally, Point 3.

P2 - Author Challenges that Position (criminal is better)

Since the first paragraph stayed in the voice of the legal theorists, we would anticipate a new view in the 2nd paragraph, and the however tells us that the author is talking now. The author affirms that criminal is the better choice since it's a stronger deterrent, it's more feasible to actually bring a suit to court, and the moral condemnation we want to achieve is better expressed through criminal law.

P3 - Opposing Position #2 (lets do criminal sanctions against individuals, not against the corporation)

These other legal theorists "argue / they maintain / they say" that going after individuals would have a bigger deterrent effect and wouldn't have the risk of harming "innocent bystanders", like shareholders / creditors / employees / consumers, that would come with going after the corporations themselves.

P4 - Author Challenges Position #2 (better to do it against corporation)

Again, a however in the first sentence indicates to us that we're switching back to the Author's Voice. She thinks that targeting corporations is better because it's easier to prosecute a company for wrongdoing than to pin blame on individual employees, and the potential damage that criminal sanctions vs. a corporation can do to that corporation also has a deterrent effect on shareholders and employees.

Going after individuals deters the few wrongdoers from doing bad, but going after corporations means that the whole corporate culture will be motivated to stay on the good path. The author acknowledges that there can be some harmful byproducts of this path but reassures us that they are outweighed by the positives.

26.

Suppose a corporation has for decades polluted a river on which a major city is located with toxic waste known to increase the incidence of certain forms of cancer. Which one of the following scenarios would most closely conform to the author's views regarding how corporate wrongdoing is most effectively addressed?

  1. Correct

    In response to criminal prosecution

    Why this is right

    This conforms to the author's portrayal of what criminal sanctions against the corporation would do. The second to last sentence of the passage is saying that criminal liability works because .. it can motivate shareholders to push for better corporate practices.

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

    73% picked this

  2. In order to assist in

    Inconsistent with Author

    This answer involves using civil litigation, but that's not consistent with what the author thinks is the most effective method (holding corporations themselves criminally liable).

    7% picked this

  3. The corporation's largest shareholders are

    Inconsistent with Author

    This answer involves going after individuals, and it's civil law since they're being sued by residents of the city. But that's not consistent with what the author thinks is the most effective method (holding corporations themselves criminally liable).

    5% picked this

  4. The city prosecutes the corporation's

    Inconsistent with Author

    This answer involves punishing individuals, but that's not consistent with what the author thinks is the most effective method (holding corporations themselves criminally liable).

    10% picked this

  5. The city government and several

    Inconsistent with Author

    This answer involves trying to deter corporations via public pressure, but that's not consistent with what the author thinks is the most effective method (holding corporations themselves criminally liable).

    5% picked this

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