1. Which one of the following most accurately expresses the main point of the passage?
(A) The modern trend in bankruptcy law away from punishment and toward the maintenance of economic activity serves the best interests of society and should not be abandoned. CORRECT
(B) Bankruptcy laws have evolved in order to meet the needs of creditors, who depend on the continued productive activity of private citizens and profit-making enterprises. X
(C) Modern bankruptcy laws are justified on humanitarian grounds, even though the earlier punitive approach was more economically efficient. X
(D) Punishment for debt no longer holds deterrent value for debtors and is therefore a concept that has been largely abandoned as ineffective. X
(E) Greater economic interdependence has triggered the formation of bankruptcy laws that reflect a convergence of the interests of debtors and creditors. X
2 . In stating that bankruptcy laws have evolved "perhaps unexpectedly" (Highlighted) as a remedy for creditors, the author implies that creditors
(A) are often surprised to receive compensation in bankruptcy courts X
(B) have unintentionally become the chief beneficiaries of bankruptcy laws X
(C) were a consideration, though not a primary one, in the formulation of bankruptcy laws X
(D) are better served than is immediately apparent by laws designed in the first instance to provide a remedy for debtors CORRECT
(E) were themselves active in the formulation of modern bankruptcy laws X
3. The author's attitude toward the evolution of bankruptcy law can most accurately be described as
(A) approval of changes that have been made to inefficient laws CORRECT
(B) confidence that further changes to today's laws will be unnecessary X
(C) neutrality toward laws that, while helpful to many, remain open to abuse X
(D) skepticism regarding the possibility of solutions to the problem of insolvency X
(E) concern that inefficient laws may have been replaced by legislation too lenient to debtors X
4. The primary purpose of the passage is to
(A) offer a critique of both past and present approaches to insolvency X
(B) compare the practices of bankruptcy courts of the past with those of bankruptcy courts of the present X
(C) criticize those who would change the bankruptcy laws of today X
(D) reexamine today's bankruptcy laws in an effort to point to further improvements X
(E) explain and defend contemporary bankruptcy laws CORRECT
5. Which one of the following claims would a defender of the punitive theory of bankruptcy legislation be most likely to have made?
(A) Debt that has become so great that repayment is impossible is ultimately a moral failing and thus a matter for which the law should provide punitive sanctions. C
(B) Because insolvency ultimately harms the entire economy, the law should provide a punitive deterrent to insolvency. X
(C) The insolvency of companies or individuals is tolerable if the debt is the result of risk-taking, profit-seeking ventures that might create considerable economic growth in the long run. X
(D) The dissolution of a large enterprise is costly to the economy as a whole and should not be allowed, even when that enterprise's insolvency is the result of its own fiscal irresponsibility. X
(E) The employees of a large bankrupt enterprise should be considered just as negligent as the owner of a bankrupt sole proprietorship. X
6. Which one of the following sentences could most logically be appended to the end of the last paragraph of the passage?
(A) Only when today's bankruptcy laws are ultimately seen as inadequate on a large scale will bankruptcy legislation return to its original intent. X
(B) Punishment is no longer the primary goal of bankruptcy law, even if some of its side effects still function punitively. CORRECT
(C) Since leniency serves the public interest in bankruptcy law, it is likely to do so in criminal law as well. X
(D) Future bankruptcy legislation could include punitive measures, but only if such measures ultimately benefit creditors. X
(E) Today's bankruptcy laws place the burden of insolvency squarely on the shoulders of creditors, in marked contrast to the antiquated laws that weighed heavily on debtors X
7. The information in the passage most strongly suggests which one of the following about changes in bankruptcy laws?
(A) Bankruptcy laws always result from gradual changes in philosophy followed by sudden shifts in policy. X
(B) Changes in bankruptcy law were initiated by the courts and only grudgingly adopted by legislators. X
(C) The adjustment of bankruptcy laws away from a punitive focus was at first bitterly opposed by creditors. X
(D) Bankruptcy laws underwent change because the traditional approach proved inadequate and contrary to the needs of society. X
(E) The shift away from a punitive approach to insolvency was part of a more
general trend in society toward rehabilitation and away from retribution CORRECT (Note that the correct answer is actually D), "general trend in society" is incorrect)
8. Which one of the following, if true, would most weaken the author's argument against harsh punishment for debtors?
(A) Extensive study of the economic and legal history of many countries has shown that most individuals who served prison time for bankruptcy subsequently exhibited greater economic responsibility. X
(B) The bankruptcy of a certain large company has had a significant negative impact on the local economy even though virtually all of the affected employees were able to obtain similar jobs within the community.X
(C) Once imprisonment was no longer a consequence of insolvency, bankruptcy filings increased dramatically, then leveled off before increasing again during the 1930s.X
(D) The court-ordered liquidation of a large and insolvent company's assets threw hundreds of people out of work, but the local economy nevertheless demonstrated robust growth in the
immediate aftermath. X
(E) Countries that continue to imprison debtors enjoy greater economic health than do comparable countries that have ceased to do so. CORRECT
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"Do not pray for an easy life, pray for the strength to endure a difficult one." - Bruce Lee