The correct answer is (C).
(C) Flaw
Step 1: Identify the Question Type
"Vulnerable to criticism" is classic LSAT language indicating there's a flaw in the reasoning. Start by identifying the conclusion and evidence. Once you determine the central assumption, look for an answer that explains why that assumption is questionable.
Step 2: Untangle the Stimulus
The "therefore" at the end indicates the union member's conclusion: The labor union shouldn't strike now, despite what some members feel. The union member has two pieces of evidence: Striking would take money from the strike fund, and the union would suffer a major financial loss by being heavily fined.
Step 3: Make a Prediction
This is a common argument structure tested on the LSAT: An author recommends against a course of action, but presents only the negative impacts of taking the action. The author of such an argument overlooks potential benefits that could outweigh the negatives. In this case, the union member argues against striking because of possible financial losses. However, the benefits resulting from an effective strike could be more valuable than any immediate financial hit. The correct answer will identify this overlooked possibility.
Step 4: Evaluate the Answer Choices
(C) identifies the classic flaw. Although it's true that the union could lose money, the author doesn't consider whether potentially more valuable benefits may result.
(A) misses the point of the argument. The union member argues against the strike because it will deplete the strike fund and result in a fine. Nothing suggests that he would change his mind if a depleted strike fund were the only concern. There's simply no reason to accuse him of overlooking this possibility.
(B) is Outside the Scope. While it's true that the union member doesn't quantify the financial loss, knowing that the loss would be "major" is sufficient for the argument.
(D) is wrong because the union member brings up finances merely as one factorÑin his mind, apparently, the decisive factor. That doesn't necessarily imply that the union member assumes it's the most important.
(E) is irrelevant. Even if there will never be a better opportunity to strike, the resulting financial loss could still be enough to deter the action.