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# Verdicts in civil suits launched against major corporations

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Manager
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Verdicts in civil suits launched against major corporations  [#permalink]

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Updated on: 06 Aug 2013, 23:35
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55% (hard)

Question Stats:

61% (01:56) correct 39% (02:17) wrong based on 558 sessions

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Verdicts in civil suits launched against major corporations can be extremely large. These verdicts, however, should be placed in proper context. Verdicts in civil suits against individuals can be much larger when measured in terms of the ability of the defendant to pay the said sum. Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants.

The argument above assumes which of the following?

a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.
b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards.
c) Corporations are responsible for at least as many of the problems in our society as are individuals.
d) No punishment is too large for the truly guilty.
e) The justice system has always been effective in collecting large sums imposed on defendants.

Originally posted by Gian on 06 Aug 2013, 10:48.
Last edited by Gian on 06 Aug 2013, 23:35, edited 1 time in total.
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 10:52
@ Everyone

Will post OA after some discussion definitely. Aren't the answer choices awkwardly phrased or may be I am missing something.

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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 11:10
seems like B....

What's the OA?
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 11:36
I think its B

My reasoning

Large Corporation - Courts can render Verdicts that can be large if company revenue is be large
Individual - verdict should be rendered Proportional to his/her income

Assumption:- verdict can be expensive but not too expensive that defendants cannot at all afford.

B states the same.
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 16:41
Gian wrote:
Verdicts in civil suits launched against major corporations can be extremely large. These verdicts, however, should be placed in proper context. Verdicts in civil suits against individuals can be much larger when measured in terms of the ability of the defendant to pay the said sum. Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants.

The argument above assumes which of the following?

a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.
b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards.
c) Corporations are responsible for at least as many of the problems in our society as are individuals.
d) No punishment is too large for the truly guilty.
e) The justice system has always been effective in collecting large sums imposed on defendants.

IMO C.

CONCLUSION:Verdicts against large corporation should be large proportional to the revenues of the corporation.

option C : Corporations are responsible for at least as many of the problems in our society as are individuals.
1)CLEARLY this supports conclusion . According to argument let say some method of punishment is applied for individual defendant ,then argument is concluding that same method of punishment should be applied for corporation. so this will be correct only if both (individual and corporation) do same type of problems.hence this options supports the conclusion.
2)clearly this is new information.
3)negation test:
Corporations are responsible for less of the problems in our society than are individuals.
if this is true the decision will be injustice.

waiting OA and further discussion
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 19:49
2
blueseas wrote:
Gian wrote:
Verdicts in civil suits launched against major corporations can be extremely large. These verdicts, however, should be placed in proper context. Verdicts in civil suits against individuals can be much larger when measured in terms of the ability of the defendant to pay the said sum. Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants.

The argument above assumes which of the following?

a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.
b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards.
c) Corporations are responsible for at least as many of the problems in our society as are individuals.
d) No punishment is too large for the truly guilty.
e) The justice system has always been effective in collecting large sums imposed on defendants.

IMO C.

CONCLUSION:Verdicts against large corporation should be large proportional to the revenues of the corporation.

option C : Corporations are responsible for at least as many of the problems in our society as are individuals.
1)CLEARLY this supports conclusion . According to argument let say some method of punishment is applied for individual defendant ,then argument is concluding that same method of punishment should be applied for corporation. so this will be correct only if both (individual and corporation) do same type of problems.hence this options supports the conclusion.
2)clearly this is new information.
3)negation test:
Corporations are responsible for less of the problems in our society than are individuals.
if this is true the decision will be injustice.

waiting OA and further discussion

The paragraph talks about civil judgement for individuals and corporations, but it doesn't make any claim about the positive or negative social impact in either case. It's entirely unclear whether and to what extent the judgements have positive or negative effects on society. The answer is likely not C, because C is well beyond the scope of the paragraph which is simply concerned with civil judgements relative to the party's income.

I believe the answer is B. The paragraph states that while the awards of civil judgements against corporations are large (i.e. dollar amounts), they are relatively less large compared to civil judgements against individuals. It goes on to explain that individuals are often levied with judgements proportionally much higher relative to their ability to pay (i.e. their income or available assets). The only answer choice that concerns ability to pay and relative size of awards is answer choice B.

Moreover, the only way for the courts to levy effectively larger awards against corporations in civil judgements is to consider the extent to which the payment is expensive (i.e. the cost relative to the means of paying the award). B is necessary for the courts to adopt the author's recommendations.

A is irrelevant because because we are never told about the collection methods, nor the success rate of collections for the courts. A is out.

C is beyond the scope of the claim. C concerns itself with social effects of civil judgements, which is entirely out of the scope of the paragraph. C is out.

D is completely irrelevant, not only because civil cases are concerned with liability, but because it's an entirely normative argument well beyond the limited scope of the paragraph, which focuses exclusively on the proportional size of awards in civil judgements. D is out.

E is a trap answer. At first blush it seems like the right answer. There is an implied assumption that the court is able to collect the judgements, otherwise there would be no value in increasing the award for civil judgements against corporations. However, E states that the courts have always been able to collect. We have no indication whether this has always been the case, and it's entirely possible that the courts were for a time unable to effectively collect awards. E is out.
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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06 Aug 2013, 23:34
andrewwellsmba wrote:
blueseas wrote:
Gian wrote:
Verdicts in civil suits launched against major corporations can be extremely large. These verdicts, however, should be placed in proper context. Verdicts in civil suits against individuals can be much larger when measured in terms of the ability of the defendant to pay the said sum. Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants.

The argument above assumes which of the following?

a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.
b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards.
c) Corporations are responsible for at least as many of the problems in our society as are individuals.
d) No punishment is too large for the truly guilty.
e) The justice system has always been effective in collecting large sums imposed on defendants.

IMO C.

CONCLUSION:Verdicts against large corporation should be large proportional to the revenues of the corporation.

option C : Corporations are responsible for at least as many of the problems in our society as are individuals.
1)CLEARLY this supports conclusion . According to argument let say some method of punishment is applied for individual defendant ,then argument is concluding that same method of punishment should be applied for corporation. so this will be correct only if both (individual and corporation) do same type of problems.hence this options supports the conclusion.
2)clearly this is new information.
3)negation test:
Corporations are responsible for less of the problems in our society than are individuals.
if this is true the decision will be injustice.

waiting OA and further discussion

The paragraph talks about civil judgement for individuals and corporations, but it doesn't make any claim about the positive or negative social impact in either case. It's entirely unclear whether and to what extent the judgements have positive or negative effects on society. The answer is likely not C, because C is well beyond the scope of the paragraph which is simply concerned with civil judgements relative to the party's income.

I believe the answer is B. The paragraph states that while the awards of civil judgements against corporations are large (i.e. dollar amounts), they are relatively less large compared to civil judgements against individuals. It goes on to explain that individuals are often levied with judgements proportionally much higher relative to their ability to pay (i.e. their income or available assets). The only answer choice that concerns ability to pay and relative size of awards is answer choice B.

Moreover, the only way for the courts to levy effectively larger awards against corporations in civil judgements is to consider the extent to which the payment is expensive (i.e. the cost relative to the means of paying the award). B is necessary for the courts to adopt the author's recommendations.

A is irrelevant because because we are never told about the collection methods, nor the success rate of collections for the courts. A is out.

C is beyond the scope of the claim. C concerns itself with social effects of civil judgements, which is entirely out of the scope of the paragraph. C is out.

D is completely irrelevant, not only because civil cases are concerned with liability, but because it's an entirely normative argument well beyond the limited scope of the paragraph, which focuses exclusively on the proportional size of awards in civil judgements. D is out.

E is a trap answer. At first blush it seems like the right answer. There is an implied assumption that the court is able to collect the judgements, otherwise there would be no value in increasing the award for civil judgements against corporations. However, E states that the courts have always been able to collect. We have no indication whether this has always been the case, and it's entirely possible that the courts were for a time unable to effectively collect awards. E is out.

Initially, I also chose C but after reading your explanation, B makes more sense. B could have been written more clearly as are choices written in Gmat Prep questions. Would like to know your views

OA: B

OE --> The conclusion of this argument is that the justice system should render verdicts against corporations that are proportional to the ones rendered against individuals, in terms of ability to pay. If the author is maintaining such a position, he or she must feel that proportional ability to pay should be a factor when determining verdicts against defendants in civil suits. Choice (B) reflects this concern.

@blueseas
IMO , the negation of choice C should be as below. The logically opposite of atleast, some, atleast one is NONE. Pls. correct if I'm wrong.

"Corporations are responsible for none of the problems in our society than are individuals."
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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07 Aug 2013, 11:10
I arrived at option B which turned out to the correct answer, only based on cancelling the ones that didn't match.

However, I didn't find option B a correct assumption somehow, maybe I missed something.

Also, am I the only one who's finding this sentence a bit awkward:

"Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants."
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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07 Aug 2013, 12:51
Semblance wrote:
I arrived at option B which turned out to the correct answer, only based on cancelling the ones that didn't match.

However, I didn't find option B a correct assumption somehow, maybe I missed something.

Also, am I the only one who's finding this sentence a bit awkward:

"Our justice system should render verdicts against corporations that are as large proportionally to the revenues of the corporation as some verdicts are proportionally to the income of individual defendants."

It's worded in a very academic fashion, but not incorrectly so. The reason option B is necessary is because in order to render larger awards in civil judgements against corporations, the courts have to take into consideration whether a judgement is expensive for the corporation in question. If the court doesn't know if a judgement is expensive, it's not possible for the court to effect more expensive judgements consistently, as the passage recommends.
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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07 Aug 2013, 13:02
3
Gian wrote:
Initially, I also chose C but after reading your explanation, B makes more sense. B could have been written more clearly as are choices written in Gmat Prep questions. Would like to know your views

I believe these answer choices are intentionally written in a fashion that to some is unclear; otherwise these questions would be fairly easy for everyone. What you have to do is effectively break down each answer choice into simplified language in order to make sense of what is being presented to you. In so doing, you'll be able to pick out the irrelevant choices, the invalid choices, and ideally pick out the correct answer almost immediately.

When I read these answer choices the first time, this is roughly how I interpreted them:

a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.

When an individual is found liable the insurance company often fails to pay what is owed (court fails to collect). Irrelevant to the paragraph. Out.

b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards.

The court should consider if a judgement is expensive for the defendant when it makes its decision. Seems to be necessary for the recommendation to be adopted. Hold this answer as possible. Move on.

c) Corporations are responsible for at least as many of the problems in our society as are individuals.

Corporations cause the same or more social problems than individuals. Beyond the scope. Irrelevant. Out.

d) No punishment is too large for the truly guilty.

If you're guilty then a large sum is appropriate. Normative claim. Not at issue here. Out.

e) The justice system has always been effective in collecting large sums imposed on defendants.

The justice system never fails to collect. This is the opposite of answer choice A. It's out of the same reasons. Out.

Since all the other choices are clearly out, B must the the correct answer. If you take some more time, you'll realize that B is in fact necessary. If you were able to pick up on that, then you could pick B and move on without testing the other answer choices.
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Re: Verdicts in civil suits launched against major corporations  [#permalink]

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28 Apr 2017, 18:19
I believe its B .
a) Insurance companies often fail to pay the sums dictated in verdicts reached against individual defendants.
b) The extent to which the payment is expensive to the defendant should be a consideration in the determination of awards. - Hold it
c) Corporations are responsible for at least as many of the problems in our society as are individuals.
d) No punishment is too large for the truly guilty.
e) The justice system has always been effective in collecting large sums imposed on defendants.
Re: Verdicts in civil suits launched against major corporations &nbs [#permalink] 28 Apr 2017, 18:19
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