#18 - Global Reference, Must Be True, Subject Perspective

[Administrator]

Complete Question Explanation

The correct answer choice is (C).

Answer choice (A):

Answer choice (B):

Answer choice (C): This is the correct answer choice.

Answer choice (D):

Answer choice (E):

This explanation is still in progress. Please post any questions below!

[powermyscoreplz]

Hi,

Is B incorrect because an "orderly discharge of debts" does not necessarily mean the largest amounts of money owed should be paid out first? I was also unsure about answer choice C because it sounded like Jackson would agree with the first half of the statement ("Bankruptcy law should favor promises to firms' creditors...") but not necessarily with the second half ("...over the well-being of those firms' employees").

[mab9178]

Hi powermyscoreplz,

I'm just an LSAT student, but I think I can help.

In the middle of the first paragraph right before the author invokes Jackson's name and argument. She states the following:
"Some legal scholars prefer the traditional model, arguing that bankruptcy law's [SOLE] task should be to make the largest possible asset pool available for settling creditors' preexisting contractually secured claims-something that is usually precluded by allowing companies to stay in business."

My reasoning is that Jackson is one of the "some legal scholars," because the sentence subsequent to the quote above invokes his name as an "example." Well, an example of what? and example of the "Some legal scholars."

If you agree with me so far, and I am sure one of the experts will correct me if I am wrong, if you agree with me so far, I please ask you to bring your attention to the capitalized word between the brackets in the quote above, "SOLE." My thinking is that if the SOLE task is to cater to the creditors, then the well-being of the employees is secondary at best.

Any way, I hope I helped and not confused the issue any further as I tend to overthink things!

Thank You
Mazen

[powermyscoreplz]

Hey Mazen, that was really helpful. Thanks !!

[sofisofi]

Hi I was wondering If I could an explanation for why B is incorrect.
thanks!

[Robert Carroll]

sofisofi,

Jackson's viewpoint is that corporate bankruptcy should be about creditors and no one else. The specific way creditors' claims are adjudicated is not really discussed. Does it make sense to let the largest creditors take money first? Or should all creditors, regardless of the size of the debt, get paid off pro rata? The very fact that I can't answer that question means there is no basis to infer Jackson's view on what answer choice (B) says.

Robert Carroll