Court Reporter Practice Exam

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When a legal decision is based on precedent, what is it referred to?

Common law
Set laws
Statutory law
Regulatory law

The correct answer is: Set laws

The correct term for a legal decision that is based on precedent is commonly known as common law. This refers to a body of law developed from judicial decisions rather than statutes, where courts look to previous cases (precedents) to guide their rulings in new, similar cases. Common law evolves with each decision made by courts, and it relies on the principle of "stare decisis," meaning that once a court has established a legal precedent, it should generally adhere to that precedent in future cases to ensure consistency and predictability in the law. The other options refer to different aspects of law: statutory law comprises laws enacted by legislatures, while regulatory law consists of rules made by administrative agencies. Set laws is not a recognized term in legal terminology. Understanding these distinctions reinforces why the correct terminology for decisions based on precedent is common law.