easy · LSAT Logical Reasoning

Until recently, employees who blew the whistle on corporate fraud were protected from retaliation only if they reported the misconduct to a government agency. A new appellate ruling extends that protection to employees who report fraud internally, to their own company's compliance department. The court reasoned that internal reporting is often the fastest route to stopping ongoing fraud, and that punishing employees for using it would discourage exactly the conduct the law was designed to encourage.

Which one of the following most accurately expresses the main conclusion of the court's reasoning?

  1. Anti-retaliation safeguards ought to cover workers who report wrongdoing through an employer's own compliance channel, not just those who go to regulators.
  2. Internal reporting is generally the single quickest available means a worker has of halting a corporate fraud while that fraud is still actively ongoing.
  3. The whistleblower statute was originally enacted chiefly in order to encourage employees to come forward and report serious instances of corporate fraud.
  4. Every employee who suspects any workplace impropriety must first report it internally before any later external disclosure of that conduct can be protected.
  5. Government agencies have historically been the only bodies legally authorized to investigate allegations of serious corporate fraud committed by an employer.

Sign up free to see the explanation and track your rank →

More LSAT Logical Reasoning practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 75,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials