What does "stare decisis" refer to in legal context?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

"Stare decisis" is a legal principle that means to stand by things decided. It refers to the doctrine of precedent, where courts follow the rulings of previous cases with similar facts and legal issues. This creates stability and predictability in the law as courts are generally required to adhere to established legal precedents when making decisions.

Legal precedent is a key component of stare decisis, as it involves the decisions made in earlier cases that inform the outcomes of current and future cases. Additionally, case law, which is the body of law established through judicial decisions rather than statutes, also relies heavily on the doctrine of stare decisis to ensure that similar disputes are treated consistently over time.

Thus, the correct answer encompasses both legal precedent and case law, as they are intrinsically linked to the concept of stare decisis in the legal system.

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