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In common law, the decision in a specific case acts as a basis for future similar cases. What is this called?

  1. Penal code

  2. Stare decisis

  3. Ordinance

  4. Precedent

The correct answer is: Precedent

The term refers to the legal principle that a decision made in a specific case can set a standard or authority for future cases involving similar issues. This allows the law to be stable and predictable, as courts look back at previous rulings when resolving current disputes. While "precedent" is specifically the practice of using earlier case rulings as a guide, the broader principle governing this practice is known as stare decisis. Stare decisis means to stand by things decided, emphasizing the importance of adhering to established precedent to ensure equal treatment under the law and that similar cases yield similar outcomes. This reinforces the consistency and reliability of the judicial system, enhancing the rule of law. In contrast, terms like penal code and ordinance refer to written laws or rules enacted by legislative bodies, which do not have the same legal implications as judicial decisions. That's why "precedent" is a focal term here, but in the context of legal processes, stare decisis is the overarching principle that encapsulates the use of precedent in the judicial system.