Which term denotes a court decision that furnishes an example or authority for deciding subsequent cases?

• A. Legal cause of action
• B. Legal precedent
• C. Order of a typical criminal trial
• D. Closing argument

Answer: (B)

Legal precedent refers to a court decision that provides an example or authority for deciding later cases. In common law systems, when a court states a rule of law in its opinion, future courts follow that rule in similar situations because of stare decisis. The binding part of the decision is the ratio decidendi, while statements not essential to the decision are obiter dicta and aren’t binding but can be persuasive. This mechanism keeps the law predictable and coherent as it gradually evolves through higher court rulings. The other options describe different things: a legal cause of action is a plaintiff’s claim; an order of a typical criminal trial is a procedural directive; a closing argument is the final speech by counsel.