Disclosure on an application may/will be seen and may/will be considered by the adcom. However, since background checks are not done until after acceptance and these may/will be reviewed by someone other than the adcom such as a dean, compliance officer, Counsel's office, they may in fact rescind based on the hard data from the check. These stakeholders may fear potential harm to reputation to any level of the institution or associated organizations such as health system or hospital. More likely, these groups may feel the background may not pass agreements with hospital/rotation site who have their own obligations/fears for their own institution. There are multiple stakeholder here, each with their own agenda and concerns. While these will be considered by the adcom, ultimately it is up to other players in some cases.
As always, I give the most extreme possibility which is unlikely in 99%+ of cases. However, after years of doing this, there is always the one case that could possibly happen. BTW, a “crime of moral turpitude” or "good morals" is often a phrase found in the statutes or regulation regarding licensing
Okay, so I guess my question is, just how does a reputable, ethical institution justify rescinding an acceptance based on information that comes to their attention through a background check that was already disclosed by the applicant as part of the application, just because they were too lazy or incompetent to notice or consider it prior to that point?
And, if you are actually suggesting that this is a thing, ever, what's the point of even asking the question as part of the application? To get people to disclose things that might not appear on a background check, just in case anyone at the school actually wants to pay attention and see or consider it?
TBH, and, of course, I haven't seen whatever contingencies schools put on acceptances, but I'd seriously consider getting a lawyer involved if I went through the process, actually received an acceptance, and then had it pulled after Certiphi came back with information I already disclosed on my primary and/or secondary. I can't believe schools are so cavalier about seeing and considering disclosures in applications, given the stakes for all involved if mistakes are made.
I also get that your perspective is that the sellers can always do whatever they want, whenever they want in the sellers market, but it's worth remembering that in the real world pissed off people with legitimate axes to grind do sue, and I'd imagine schools would want to take reasonable steps to avoid that. And nothing is more reasonable than actually reading and considering all information submitted by applicants before extending an acceptance.
As legitimate as all of the institutional considerations you described are, taking something as valuable as a medical school acceptance away from an applicant also has real world consequences. As I implied above, these powerful institutions really can't just do whatever the hell they want with impunity, in a world with courts, contingency fee attorneys and the rule of law, which is why I highly doubt they are as careless with applicant disclosures as you imply.
If the applicant does the right thing and makes all the required disclosures, and somehow slips by until a background check comes back, I'd think the school would have to either suck it up and deal with its partners, or suck it up and compensate the applicant. Two bad options, which is why I HIGHLY doubt schools would "maybe" see and consider disclosures made by the applicant prior to making a decision to accept.
I think someone would get fired for missing it, and, one way or the other, the school would deal with the consequences, because being the seller in the sellers' market wouldn't necessarily shield it from potential liability, regardless of how one-sided the acceptance language reads. I know for a fact we don't live in a world in which these schools have never been sued by a student or applicant, and I'd be willing to bet a full ride to medical school that more than one of those claims has resulted in a judgment or settlement in favor of the applicant or student.