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Correct Option is Although some argue that the authority of legal systems is purely institutional, these systems possesses a degree of intellectual authority due to their ability to reconsider badly reasoned or socially inappropriate judicial decisions.

Refer the last paragraph, “But eh critics miss the crucial distinction that when a judicial decision is badly reasoned, or simply no longer applies in the face of evolving social standards or practices, the notion of intellectual authority is introduced: judges reconsider, revise, or in some cases throw out in the reconsideration of decisions, leading one to draw the conclusion that legal systems contain a significant degree of intellectual authority even if the thrust of their power is predominantly institutional.” Hence (d) is the correct choice in context of the passage. 

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