PrepTest 142, Section 4, Question 23
The constitution of Country F requires that whenever(58 more words not shown)
The government of Country F(22 more words not shown)
- AThe government will(42 more words not shown)
- BThe government has(34 more words not shown)
- CThe government will(39 more words not shown)
- DThe government will(54 more words not shown)
- EThe government will(40 more words not shown)
Reading the argument
The government has to satisfy two demands at once: get the highest open-market price and keep majority ownership in citizens' hands for at least a year.
Neither demand can simply replace the other. The government can't take a lower price just because it likes the buyer, and it can't accept the top price if doing so makes the required citizen ownership impossible. Citizen ownership also doesn't mean that the government itself must keep the company or that every owner must be a citizen.
What we’re looking for
We're looking for a sale where at least one rule must be broken. I'd expect a situation in which protecting citizen ownership prevents the government from obtaining the highest price. Check whether a choice creates that unavoidable conflict, rather than merely leaving some detail uncertain.
Working the answers
- A
Foreign buyers acquire only a minority share, so citizens can still hold the majority. We would still need to ensure that majority lasts for the required year, but nothing described makes that impossible. A change from entirely citizen-owned to mostly citizen-owned isn't itself a violation.
- B
Where a corporation operates and sells products is different from who owns it. A company can do most of its business abroad while citizens of Country F retain majority ownership. B doesn't create the required conflict between the constitutional conditions.
- C
World Oil made one of the highest offers, not necessarily the single highest offer the government must accept. Uncertainty about its ownership would matter if the government had to rely on that buyer, but the choice doesn't establish that necessity. Another top offer might meet the ownership rule. The described uncertainty doesn't prove an unavoidable violation.
- D
The highest bidder already has majority ownership by citizens. A foreign minority doesn't disqualify it, so the government needn't take the second, lower bid just because every investor in that group is a citizen. D offers no forced tradeoff between price and majority ownership.
- ECorrect
To ensure citizen majority ownership, the government must restrict who may buy StateRail. But any restrictions that do the job reduce the price. Meeting the ownership requirement therefore prevents the government from receiving the unrestricted open-market price.
Going the other way doesn't solve it: without the necessary restrictions, the government can't ensure citizen majority ownership. Since the sale will happen, at least one of the two requirements must give way.
More Must Be True questions
Learn the LSAT our way
Our platform drills Must Be True questions at your level and adjusts as you improve.