when the verb "exemplify" is used in the active form, the example, the single case, is the subject, and the general category is the direct object. when it is used in the passive form, the general case is the subject, and the example is the object of the preposition "by." in this sentence, "the declining standards ...." form the general case, not the specific example, so we need the passive form, "is exemplified ..." with the specific example, "bedford's disregard for facts," in the "by" prepositional phrase.