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# Whenever a company loses a major product-liability lawsuit,

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Senior Manager
Joined: 30 Aug 2003
Posts: 329
Location: BACARDIVILLE
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Whenever a company loses a major product-liability lawsuit, [#permalink]

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07 Dec 2003, 17:02
00:00

Difficulty:

(N/A)

Question Stats:

60% (03:02) correct 40% (02:16) wrong based on 7 sessions

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Whenever a company loses a major product-liability
lawsuit, the value of the companyтАЩs stocks falls
significantly within hours after the announcement. Cotoy
has long been involved in a major product-liability
lawsuit, and its stocks fell significantly in value today.
Therefore, we can be sure that an unfavorable judgment
against Cotoy in that lawsuit was announced earlier
today.

Which one of the following contains flawed reasoning
that most closely parallels that in the argument above?

(A) Whenever a business treats its customers
discourteously, its customers begin to shop
elsewhere. Shopwell wants to keep all of its
customers; therefore, its employees will never
treat customers discourteously.
(B) Whenever the large airlines decrease fares, the
financial stability of smaller competing airlines
is adversely affected. Therefore, the smaller
competing airlinesтАЩ financial stability must be
seriously threatened when the large airlines
announce a large price decrease.
(C) Whenever a country shows a lack of leadership
on international issues, respect for the countryтАЩs
policies begins to decline. Therefore, to gain
respect for its policies, a country should show
(D) Whenever an entering student at Cashman
College wins the Performance Fellowship, he or
she receives $10,000. Therefore, Eula, a student who has enrolled at Cashman, must have won the Performance Fellowship, because she just received$10,000 from the college.
(E) Whenever a company advertises its products
effectively, the companyтАЩs sales increase.
OrocoтАЩs sales have not increased; therefore, it is
likely that the company did not advertise its
products effectively.

****Any ?
If you have any questions
New!
CEO
Joined: 15 Aug 2003
Posts: 3454
Followers: 67

Kudos [?]: 874 [0], given: 781

Re: CR: Take a bite out of this one [#permalink]

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07 Dec 2003, 19:51
sunniboy007 wrote:
Whenever a company loses a major product-liability lawsuit, the value of the companyтАЩs stocks falls significantly within hours after the announcement. Cotoy has long been involved in a major product-liability lawsuit, and its stocks fell significantly in value today.
Therefore, we can be sure that an unfavorable judgment against Cotoy in that lawsuit was announced earlier today.

Which one of the following contains flawed reasoning
that most closely parallels that in the argument above?

(A) Whenever a business treats its customers
discourteously, its customers begin to shop
elsewhere. Shopwell wants to keep all of its
customers; therefore, its employees will never
treat customers discourteously.
(B) Whenever the large airlines decrease fares, the
financial stability of smaller competing airlines
is adversely affected. Therefore, the smaller
competing airlinesтАЩ financial stability must be
seriously threatened when the large airlines
announce a large price decrease.
(C) Whenever a country shows a lack of leadership
on international issues, respect for the countryтАЩs
policies begins to decline. Therefore, to gain
respect for its policies, a country should show
(D) Whenever an entering student at Cashman
College wins the Performance Fellowship, he or
she receives $10,000. Therefore, Eula, a student who has enrolled at Cashman, must have won the Performance Fellowship, because she just received$10,000 from the college.
(E) Whenever a company advertises its products
effectively, the companyтАЩs sales increase.
OrocoтАЩs sales have not increased; therefore, it is
likely that the company did not advertise its
products effectively.

****Any ?

I think B is best.

good questions

thanks
praetorian
Senior Manager
Joined: 30 Aug 2003
Posts: 329
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07 Dec 2003, 20:12
Praet...
B) isn't correct....
Look closer at the stimulus...
Intern
Joined: 22 Nov 2003
Posts: 41
Location: Serbia
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07 Dec 2003, 20:25
In my opinion, D is the right answer.
Intern
Joined: 22 Nov 2003
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07 Dec 2003, 20:29
Oh, I was offline when you posted official answer.
Well,not the fastest... but at least I was right....
Senior Manager
Joined: 30 Aug 2003
Posts: 329
Location: BACARDIVILLE
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07 Dec 2003, 20:34
Zeka...
Thats the spirit
SVP
Joined: 03 Feb 2003
Posts: 1604
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09 Dec 2003, 04:51
of course it is D.

The wrong pattern in the initial stem:
If A, then B
If B, then A

D 100% matches it.
Intern
Joined: 13 Apr 2014
Posts: 7
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Kudos [?]: 0 [0], given: 0

Re: Whenever a company loses a major product-liability lawsuit, [#permalink]

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08 Apr 2016, 05:41
I think D is the most right answer.
Re: Whenever a company loses a major product-liability lawsuit,   [#permalink] 08 Apr 2016, 05:41
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