Laws that develop out of court decisions and establish precedents for future cases are called

Laws that develop out of court decisions and establish precedents for future cases are called

• A. Statute
• B. Common law
• C. Concurrent causation
• D. Intervening act

Answer: (B)

Laws that develop out of court decisions and establish precedents for future cases are common law. This body of law grows when judges decide disputes and articulate rules based on previous rulings, statutes, and the facts before them. Over time, these court-made decisions form precedents that guide how similar issues should be resolved in the future, a principle known as stare decisis. A statute, by contrast, is written law enacted by a legislature, not created through judicial decisions. The other terms relate to causation concepts in insurance, not to the source of law.

Laws that develop out of court decisions and establish precedents for future cases are common law. This body of law grows when judges decide disputes and articulate rules based on previous rulings, statutes, and the facts before them. Over time, these court-made decisions form precedents that guide how similar issues should be resolved in the future, a principle known as stare decisis. A statute, by contrast, is written law enacted by a legislature, not created through judicial decisions. The other terms relate to causation concepts in insurance, not to the source of law.