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In the directions for LR it says "You should not make assumptions that are by commonsense standards incompatible with the passage" how would you go about defining "incompatible" in an answer choice in relation to the stimulus?

Your question is pretty difficult to answer; "making assumptions" implies that you're bringing in outside information, which wouldn't be included in answer choices.

Just read the second page of this: http://www.powerscore.com/lsat/content/ ... erpt_1.pdf

The response above, while accurate, I think misses the point. Incompatible with the passage means that they contradict what the passage says. If the passage says that small cars are more prone to accidents than large cars as evidence in support of a position, you have to take that as a fact, even if you think that it's likely that that's not true. Don't make assumptions that flatly contradict the passage's facts, in other words.