Self-study
P1
Traditionally, corporate bankruptcy law placed highest priority on the orderly discharge of debts; courts generally ordered failed businesses to pay all creditors a set percentage of the amounts owed. ███
Traditional Approach ·
Discharge of debts is top priority
Modern Approach ·
“Reorganization” allows company to continue operating
Argument for Traditional Approach ·
Bankruptcy is solely to pay back creditors
Example of traditionalist: Jackson
P2
██████ ████████ ███ ██████ █████ ████ █████████ ███████ █████ ██ ████ ███ ██████ ██ ███ █████████ ██ █████ ███████ ████████ ██ █ █████████████ ███████████ ████ ██ ██████████ █████████ ███ █████ ███████████ ███ ███ █████████ ██ ███████████████ █████ █████████ ███ ███ ███████████ ██ ███ █████████ ███████████ ██████ █████████ █████████ ████████ ███████ █████ ███ █ ████████ ██ ██████ ██ ███████ ██████████ ██ ████████ ██ ████████ ███████ ████ ██████ ██ █████ ██ ████████████ █████████ ██ ██████ ████ ██ ████████ ██████████ ██████ ██ █████████ ███████ █████████ ██████████ ███ ███ ████████ ███ ██ ██████
Critique of Traditional Approach ·
Traditionalists do not consider other interests (employees, communities)
P3
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Argument for Modern Approach ·
Fairness for all parties through (1) inclusion and (2) rational planning
P4
███ █████ ██████████ ████████ ██ ████ █████████ ████ ██████████ ██ ████ ███ ███████████ ███████████ ███
Main Conclusion ·
Modern approach is more equitable but also has weaknesses
Premise 1 ·
Credit will be more expensive
Premise 2 ·
No way of assessing vulnerability to loss
Passage Style
Critique or debate
15.
Which one of the following ████ ██████████ █████████ ███ ████ █████ ██ ███ ████████
a
According to Korobkin, █████████ ██████████ ██ ██████████ ███ ████ ███ ██████████ ███████ ███ █████████ █████ ██ ███ ███ ███ ████████ ██ ███ ███████ ██ █ ████████████
This doesn’t capture the author’s opinion. (A) merely describes Korobkin’s opinion. But it doesn’t indicate that Korobkin’s view is more equitable or that Korobkin’s view has certain weaknesses.
b
Korobkin's approach to ██████████ ███ █████████ ██ ██████ ████████ ██ █████████ ██████████ ██ ██████ ████ ███ ███████████ ████████ ███████ ██ ████████ ███ ██ ██ ███ ███████ ██████████
This best captures the main point as expressed in the last paragraph.
c
Korobkin opposes Jackson's ██████████ ██ ██████████ ███ ███████ ██ █████ ██ ███████ █ ████████ ████ ███ ████████████ ███ ██████████ ██ ████ ██ ███ ██████████ ██ ██████ █████████████
This doesn’t capture the author’s opinion about Korobkin’s view, which is that it is more equitable than Jackson’s, but also has significant weaknesses.
d
Korobkin argues that ███ ███████████ ██████████ ████ █████████ ██ ███████ ██████████ ████████████ ████████████ ████ ████ █████ ███████ ██ █████████ ████████ ███ ███ ████████
This doesn’t capture the author’s opinion about Korobkin’s view, which is that it is more equitable than Jackson’s, but also has significant weaknesses.
e
Korobkin's vision of ██████████ ███ ██ ████ ███████ █████ ████████████ ████ █████████ █████████ ███ ███ █████████ ████████ █████ ██ ██████████ ██████ ████████ ███ ██████████ █████████
The author doesn’t suggest that the long-term costs of Korobkin’s regime outweigh its benefits. She also doesn’t indicate that Korobkin’s view is more popular among policymakers.