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Personally I agree with your interpretation, but what AMCAS actually asks is "if you were ever the recipient of any institutional action resulting from unacceptable academic performance or a conduct violation, even if such action did not interrupt your enrollment, require you to withdraw, or does not appear on your official transcripts due to institutional policy or personal petition".
So it would seem that unacceptable conduct violations in themselves do not necessarily need to be reported, unless they resulted in an institutional action. Best way to know is to ask the school whether they considered a particular punishment to be an institutional action. I wish the wording of this was changed to avoid people getting off on a technicality.
This is fair. I interpreted "institutional action" as any action by any administrator/professor acting as a representative of the institution or by the institution itself (through a judiciary board or committee) that resulted in some kind of sanction (reduction in grades, 0 on an exam, etc.) rather than a warning.
I find that leaving it up to an institution to determine whether or not what they did constituted an "institutional action" is extremely subjective and inconsistent from school to school. I agree that AMCAS probably needs to change the wording on this question or more clearly define what medical schools consider to be an institutional action. Then again, I'm an applicant, so I'm a bit biased in that I would always like to have more clarification on everything.
Until then, we'll probably continue to see the standard drop-down/multiple-choice question on a secondary that asks this question in more detail (for some schools).